ICIEC Partners With Egypt, and AATB to Support Economic Development
According to the latest news, the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), and the Arab Republic of Egypt, addressed by the Ministry of Trade and Industry and two other associates of the Arab-Africa Trade Bridges (AATB) Program have come together, and encountered a Framework Agreement with an agenda of increasing economic coordination and boost sustainable development in all Arab and African nations.
The above-mentioned two-year Framework Agreement will be initiating endeavors toward trade advancements, especially in areas with significant added value. Moreover, sectors that are dependent on a more talented labor force and sectors that promote further investments will get an additional shift as a result of this agreement. In this regard, last year, the African Development Bank Group’s collaboration with the WTO was an initiative towards bridging the trade finance gap due to Covid-19 pandemic.
Egypt has been one of the most active Member States under the AATB since its acquisition in 2019 in a bid to further increase the flow of Egyptian exports in African markets, uplifting the total level of exports to $100 billion over the next five years. Additionally, the Framework Agreement will also uphold the African Continental Free Trade Agreement (AfCFTA), which is one of the biggest free trade areas on a global level.
Association was formulated between the General Secretariat of the Program and the Development Projects Unit of the Ministry of Trade and Industry in the Arab Republic of Egypt, to create a work program for the advancement of Egypt, empowering projects for the growth of the Egyptian economy, and providing aid to several sectors to polish their capabilities.
The consented initiatives that are expected to be applied between 2022-2023, also include a trade mission - to Tunisia - at least 100 bilateral gatherings were held between Egyptian organizations and their Tunisian counterparts (highlighting starting agreements of over 5 million dollars across 20 organizations); and to Nigeria - at least 75 bilateral gatherings were held between Egyptian organizations and their Nigerian counterpart (concluding agreements of over 4 million dollars across 15 organizations).
The conclusion of arrangements and agreements with commercial associates from across Africa will also be acknowledged, in an association with the African Export-Import Bank (Afreximbank), International Islamic Trade Finance Corporation (ITFC), including finance and guarantees for various African nations, and a contribution in a yearly seminar to finance trade in Africa.
“Under the framework agreement between Egypt and the AATB associates of ICIEC, ITFC, and Afreximbank, we will stimulate improved trade flows between the two areas,” ICIEC CEO, Oussama Kaissi stated. “Uplifting economic coordination and bringing sustainable growth in all Arab and African nations is the ultimate mission of this long-lasting association.”
ICIEC was laid out in 1994 to advance intra-OIC trade and investments by providing Shariah-compliant risk mitigation tools and financial institutions. ICIEC is the biggest Shariah-compliant multilateral insurer in the world. It has driven from the front in providing an all-inclusive suite of solutions to firms and projects in its 48 Member States, including trade credit insurance products as well as investment insurance products. In total, ICIEC has provided its insurance services to over US$ 83.3bn in trade and investment since its establishment, out of which US$66.13 billion was for encouraging the trade of Member States, and US$17.18 billion for foreign direct investment (FDI) flows into the Member States. Apart from this, ICIEC has also provided insurance cover for organizations in 48 Member States, increasing their prosperity, growth, and economic diversification.
For the 14th consecutive year, ICIEC acquired an “Aa3” insurance financial strength credit rating from Moody’s, ranking the Corporation among the leading of the Credit and Political Risk Insurance (CPRI) Industry. ICIEC’s strength is supported by its sound guaranteeing, reinsurance, and risk management policies and practices.