Initiative showcased key investment, trade and insurance pillars designed to improve trade between Arab and African countries, targeted at key sectors including agro-food, health, and pharmaceuticals amongst others

Jeddah, 03 February 2021. – Under the umbrella of the Arab-Africa Trade Bridges (AATB) Program, three IsDB Group Private Sector Entities hosted a webinar on key trade finance and investment components aimed at fostering regional trade. The entities included the International Islamic Trade Finance Corporation (ITFC), the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) and the Islamic Corporation for the Development of the Private Sector (ICD) in collaboration with IsDB Group Business Forum “THIQAH”. Over 1,000 development institutions, sovereign funds, banks, investment and private equity companies, and key government and corporate sector representatives were in attendance.

The event, which focused on the investment, trade and insurance pillars of the AATB program showcased potential business opportunities existing between the two regions particularly in key industries such as agro-food, health and pharmaceutical, building and construction materials and equipment, as well as machinery and electrical equipment. Projects and activities involving the growth of trade related investment and knowledge and technology transfer between the Arab and African countries were explored with the aim of growing AATB member base.

The webinar was inaugurated with keynote speeches from Mr. Oussama Kaissi, Chief Executive Officer of the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), Mr. Ayman Sejiny, Chief Executive Officer of the Islamic Corporation for the Development of the Private Sector (ICD) and Eng. Hani Salem Sonbol, Chief Executive Officer of International Islamic Trade Finance Corporation (ITFC).

Key outcomes from this session noted considerable progress in terms of launching and implementing the projects involving the growth of trade investment and technology transfer between Arab and African countries. The session also addressed the key challenges limiting the business community and concerned trade and investment authorities of the countries in both regions by nurturing an environment where the parties can benefit from the opportunities that exist. 

In his opening address, Mr. Oussama Kaissi, said: “Despite the tragedy presented by the pandemic, these unprecedented times have brought development institutions together to seek solutions and encourage innovation, teaching us that the best way forward is together. ICIEC believes that through the AATB program, our multilateral efforts can enhance pandemic responses, capacity building efforts, and economic security, providing the citizens of Arab and African countries the knowledge and materials to build a better future.”

Eng. Hani Salem Sonbol, corroborated the sentiment, saying: “Since its launch in 2017, AATB has become the foremost platform in driving trade between the Arab and African regions, with important initiatives that strengthen growth and prosperity in beneficiary countries. The program facilitates financial and technical support for trade and investment-related activities aimed at promoting intra-trade between the regions through specific interventions and dedicated trade finance and investment components”.

“ICD will lead the Investment Pillar of the AATB Program, which aims to mobilize and allocate resources to impactful investments in Arab and African countries including recovery packages to overcome the adverse impacts of Covid-19. In line with our global approach, we aim to expand existing and build new partnerships with financial institutions to design and launch special financial packages for the benefit of member countries under the umbrella of the AATB Program.” said Mr. Ayman Sejiny.

Moderated by Mr. Nasser M. Al-Thekair, General Manager, Trade & Business Development, ITFC, the first session presented by Mr. Syed Quadri, Acting Director, Resilience and Social Development Department in IsDB discussed key features and benefits of the AATB investment pillar to financial institutions and key partner networks. A panel discussion on the benefits and features of AATB’s trade, investment and insurance pillars featured key speakers including Mr. Aymen Kasem, Division Manager, Trade Development, Trade & Business Development of ITFC, Mr. Essaied Ben Ahmed, Principle, Infrastructure & Corporate Finance Global Markets & Fixed Income of ICD, and Mr. Ismail Filali Allach, Country Manager, Morocco, Middle East & North Africa Region Division, ICIEC.

AATB is a multi-donor, country and organization program designed to leverage new trade partnerships, strengthen existing ones, and increase trade and investment flows between the Arab and African regions. At present, its partners and members include IsDB, ITFC, ICIEC, Afreximbank, Arab Bank for Economic Development (BADEA), and OPEC Fund with member country representation consisting of Benin, Cameroon, Egypt, Morocco, Senegal, Togo, and Tunisia. 

For more information about the event, please visit www.AATB-Events.org

ENDS

About the Arab-Africa Trade Bridges (AATB) Program

AATB is a multi-donor, multi-country, and multi-organizations program, aiming to promote and increase trade and investment flows between African and Arab member countries; provide and support trade finance and export credit insurance; and enhance existing capacity building tools relating to trade. The program specifically focuses on the key sectors of agriculture and related industries including textiles; health industry including pharmaceuticals; infrastructure and transport; and petrochemicals, construction material and technology.

Contact us 

Twitter: @aatb_program

Facebook: @aatbprogram

E-mail: aatb@itfc-idb.org 

About the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC)

ICIEC is a member of the Islamic Development Bank (IsDB) Group. ICIEC was established in 1994 to strengthen the economic relations between member countries of the OIC. Since its inception, the utilization of ICIEC services by member countries reached USD 106.34 billion of trade and investments. ICIEC’s cover has been provided to its 47 member countries across the Muslim world, assisting in their economic prosperity, development and diversification. ICIEC is rated Aa3 insurance financial strength credit by Moody’s with a Stable Outlook. ICIEC’s vision is to be recognized as the preferred enabler of trade and investment for sustainable economic development in Member Countries. Its mission is to facilitate trade and investment between member countries and the world through the provision of Shariah compliant risk mitigation tools and financial solutions.

About the International Trade Finance Corporation (ITFC)

The International Islamic Trade Finance Corporation (ITFC) is a member of the Islamic Development Bank (IsDB) Group. It was established with the primary objective of advancing trade among OIC member countries, which would ultimately contribute to the overarching goal of improving socioeconomic conditions of the people across the world. Commencing operations in January 2008, ITFC has provided more than US$55 billion of financing to OIC member countries, making it the leading provider of trade solutions for these member countries’ needs. With a mission to become a catalyst for trade development for OIC member countries and beyond, the Corporation helps entities in member countries gain better access to trade finance and provides them with the necessary trade-related capacity building tools, which would enable them to successfully compete in the global market.

About the Islamic Corporation for the Development of the Private Sector (ICD)

The Islamic Corporation for the Development of the Private Sector (ICD) is a multilateral development financial institution and is member of the Islamic Development Bank (IsDB) Group. ICD was established in November 1999 to support the economic development of its member countries through the provision of finance for private sector projects, promoting competition and entrepreneurship, providing advisory services to the governments and private companies, and encouraging cross border investments. ICD is Rated A2’ by Moody’s, ‘A’ by S&P and, A+ by Fitch. ICD establishes and strengthens cooperation and partnership relationships with an aim to establish joint or collective financing. ICD also applies financial technology (Fintech) to make financing more efficient and comprehensive.

About the Islamic Development Bank Group Business Forum (THIQAH)

The Islamic Development Bank Group Business Forum (THIQAH) is the window of the IsDB Group that facilitate contact and coordination between entities concerned of the IsDB Group and private sector firms and related institutions in IsDB Group member countries. The main objective of THIQAH is to establish a unique platform for effective dialogue, cooperation and inclusive partnership for business leaders committed to partnering in promising investment opportunities. Through facilitation and catalyst roles, THIQAH will be leveraging IsDB Group’s resources to offer necessary services and confidence to investors and to establish strategic partnerships with the leaders of the private sector. The primary focus will be on maximizing cross-border investment among member countries to be supported by IsDB Group's financial products and services. (www.idbgbf.org)

BANK OF AFRICA BMCE Group and the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), a member of the Islamic Development Bank Group signed on January 25^th, 2021 a Memorandum of Understanding (MoU) to support trade and Investment in member countries.

This Memorandum of Understanding was signed by: Mr. Brahim BENJELLOUN TOUIMI, Administrator Managing Director of BANK OF AFRICA BMCE Group, and Mr. Mohammed AGOUMI, Managing Director, in charge of International Division of BANK OF AFRICA BMCE Group and Mr. Oussama KAISSI, Chief Executive Officer of ICIEC.

In the pursuit of BANK OF AFRICA's pan-african vision and ICIEC’s mission as a Multilateral Institution to facilitate trade and investments between member countries and the world, the two parties have decided to join their efforts, through this agreement, to extend collaboration in facilitating trade transactions and financing sustainable and social infrastructure projects throughout Africa.  Moreover, this agreement offers a solid base of collaboration in the private and public sector related projects, to consolidate the Moroccan based bank’s positioning as a key player of trade and investment in AFRICA. 

The CEO of ICIEC, Mr. Oussama KAISSI states “This partnership comes at a time where the relationship between both institutions started to expand after concluding interesting deals in different western African countries where BANK OF AFRICA BMCE Group has a strong footprint. Morocco is one of the Corporation’s valued member countries, and ICIEC has been working jointly with the BANK OF AFRICA BMCE Group to support strategic trade transactions and infrastructure projects, helping to support our member countries in response to COVID-19. This Memorandum of Understanding between the two institutions serves to strengthen this partnership and highlights the focus both organizations have on expanding the level of cooperation targeting the joint member countries”.

Mr. Brahim BENJELLOUN TOUIMI, Administrator Managing Director of BANK OF AFRICA BMCE Group said “the sealing of this partnership underlines the strategy of BANK OF AFRICA BMCE Group, under the aegis of Chairman Othman BENJELLOUN, to play an increasing role in Africa by facilitating trade transactions and providing sustainable financing to its customers. This partnership with ICIEC will enhance the capacity of the Group to consolidate its leading position. Compelling deals have already been finalized with the support of ICIEC and more are to come through mutual innovation”

“With this Memorandum of Understanding and thanks to its new openings in Dubai and Shanghai, BANK OF AFRICA BMCE Group will benefit from the experience of ICIEC, to enlarge  its customer base  in the Gulf and Southeast Asia regions by facilitating trade flows and enhancing mutual investments”, added Mr Mohammed AGOUMI, Managing Director in Charge of the International Division.    

About ICIEC

The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) is a member of the Islamic Development Bank (IsDB) Group. ICIEC was established in 1994 to strengthen the economic relations between member countries of the OIC. ICIEC’s vision is to be recognized as the preferred enabler of trade and investment for sustainable economic development in Member Countries. Its mission is to facilitate trade and investment between member countries and the world through the provision of Shariah compliant risk mitigation tools and financial solutions

About BANK OF AFRICA BMCE Group

BANK OF AFRICA BMCE Group is one of Africa’s main Pan-African financial groups operating in 31 countries in Africa, Europe, Asia and North America with an extensive portfolio of brands and subsidiaries, its universal banking business model has seen it diversify into a variety of business lines including commercial banking, investment banking as well as specialised financial services such as leasing, factoring and consumer credit. The Group employs more than 15,200 staff around the world and has more than 1,800 points of sale, serving just fewer than 6.6 million customers.

The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) and KUKE, the national Export Credit Agency (ECA) of Poland, have signed a cooperative Memorandum of Understanding (MoU).

The signing of this MoU signifies the growing interest of Polish exporters and investors to conduct business in the OIC region, and vice-versa. Due to the implications of the COVID-19 pandemic, demand is growing for insurance guarantees in markets where credit and political risks pose a greater challenge. Through the signed MoU, ICIEC and KUKE will work together to provide risk mitigation solutions for businesses and investors.

The MoU is designed to strengthen the existing collaborative efforts between the two insurance providers, enhancing their capacity to support trade and investment between Poland and ICIEC’s 47 member countries. In addition, the MoU encourages further forms of cooperation, including technical assistance and capacity building.

“The signing of this Memorandum of Understanding serves to reinforce the opportunities for trade and investment between both companies in OIC countries and to deepen the partnership ICIEC has forged with KUKE,” says ICIEC CEO Mr. Oussama Kaissi. “We hope that this partnership serves as an example to more western countries by demonstrating the dynamic and growing market potential that exists in OIC countries and to consider the region’s foreign direct investment potential.”

“ICIEC is an experienced partner with whom cooperation will help KUKE strengthen the presence of Polish exporters and investors from many industries on very promising markets” says KUKE CEO Janusz Władyczak. “While the uncertainty related to the pandemic has suspended some projects, we are already looking together to the future when the world will overcome the effects of the virus. Polish companies with an attractive combination of high quality products and services and competitive pricing are increasingly boldly looking for markets with a potential for growth outside of Europe. With the support of ICIEC and KUKE Polish exporters have a chance for a dynamic expansion on four continents.”

About ICIEC

The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) is a member of the Islamic Development Bank (IsDB) Group. ICIEC was established in 1994 as a multilateral institution to strengthen the economic relations between member countries of the OIC. ICIEC is rated Aa3 by Moody’s with a stable outlook. ICIEC’s vision is to be recognized as the preferred enabler of trade and investment for sustainable economic development in Member Countries. Its mission is to facilitate trade and investment between member countries and the world through the provision of Shariah compliant risk mitigation tools and financial solutions. iciec.isdb.org

ABOUT KUKE

For 30 years KUKE has been insuring trade receivables of Polish entrepreneurs and providing guarantees to facilitate safe trade and investments in Poland and abroad. We are the only insurance company in Poland providing export insurance backed by the State Treasury and covering long-term export transactions of capital goods. Our subsidiary KUKE Finance provides export and domestic factoring services. More about us: www.kuke.com.pl.

The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) signed a Memorandum of Understanding (MoU) with Eximgarant of Belarus (Eximgarant), the Export Credit Agency (ECA) of the Republic of Belarus.

The signed MoU promotes collaborative efforts to support trade and investment between the Republic of Belarus and ICIEC member countries, encouraging joint export credit insurance provisions and other forms of cooperation such as technical assistance and capacity building.

This is the fifth MoU ICIEC has signed this year and the fourth with a European ECA. These partnerships facilitate flexible yet strong agreements for risk sharing in the form of reinsurance or co-insurance, supporting both parties to increase their risk appetite for trade transactions and investments.

“Through close collaboration with Eximgarant and other ECAs, both institutions are able to provide additional insurance capacity,” ICIEC CEO, Mr. Oussama Kaissi, says. “Through the expanded trade coverage supported by these partnerships, firms in member countries can access new markets, grow in existing markets, and in the process generate employment and economic growth. This new partnership with Eximgarant is helping to give a much-needed economic boost to ICIEC member countries, assisting them in recovering from the effects of the pandemic”.

The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) has released its Annual Report and financial statements for 2019, upon approval from its Board of Governors on 29 May 2020.

The Corporation, a member of the Islamic Development Bank Group (IsDBG), has once more demonstrated its resilience through a year of general volatility. Despite 2019 being marked by the intensification of trade tensions, political instability, and weak global growth, the Corporation raised its business insured by 20% to reach USD 10.86 billion - the highest in the past decade. Over its 26 years of existence, ICIEC has cumulatively insured more than USD 64 billion in support of global trade and investments.

Based on its performance, ICIEC has maintained, for the 12th consecutive year, an Aa3 rating by Moody’s - which is one of the strongest in the Export Credit and Political Risk Insurance industry.

The Corporation saw an increase of more than 28% over the previous year in total intra-OIC business, having insured a total of USD 5.4 billion, involving 36 member countries. These results contribute to the OIC’s goal of reaching a 25% intra-OIC trade share by 2025. 

Releasing the 2019 Annual Report, the Chief Executive Officer of ICIEC, Mr. Oussama KAISSI, expressed optimism at the Corporation’s prospects for 2020, stating “We are well positioned to weather the effects of the ongoing coronavirus pandemic and continue our strong business performance as a direct result of the robust pipeline developed  in 2019”.

Mr. KAISSI went on to say, “These results demonstrate ICIEC’s growth and continued commitment to delivering on its mandate of supporting trade and investment in our 47 member countries - assisting in their economic development, diversification and prosperity. Considering the significant growth, our Corporation is on track to reach its 2019-2020 Business Plan targets for business insured”.

ICIEC attributes the impressive 2019 results to various operational initiatives, including: underwriting improvements, risk management and technical reserving practices, a strong commitment to continuous professional development, as well as our partnership with international players in the industry. 

The G20 Saudi Presidency for 2020 requested that Multilateral Development Banks (MDBs) conduct a stock-take study on “Best Practices of MDBs and Specialized Multilateral Insurers (SMIs) in Political Risk Insurance for Equity Investments, Medium and Long-Term (MLT) Debt Investments and other Insurance Solutions.”

Recognizing ICIEC -IsDB Group’s Insurance arm- expertise in Political Risk Insurance, the G20 Saudi Presidency mandated the Corporation, in coordination with other MDBs, to prepare the study for the Chair of the G20 International Financial Architecture (IFA) Working Group.

The study analyzes the current state of the political risk and credit insurance market for equity investments and MLT debt investments. It also identifies best practices and potential gaps in the market and provides recommendations on how identified gaps could be filled, particularly for low income countries and fragile states. Based on the study, four recommendations were developed for both users and providers of credit and political risk cover for equity and MLT debt.

ICIEC with peer Specialized Multilateral Insurers (SMIs) and ECAs continued commitment to the UN Sustainable Development Goals (SDGs) is reflected in the report through the examination of possible solutions for encouraging equity investments and MLT debt investments that can scale up capital flows to achieve the SDGs.

ICIEC CEO, Mr. Oussama KAISSI asserts, “the findings of this report will shape ICIEC’s future strategic focus from one that is centered on strengthening intra-OIC economic relations to expanding our role in insuring transactions that strengthen South-South trade.”

As the only Shariah compliant multilateral trade and investment insurer, ICIEC has a leadership role in developing the Islamic Finance Trade Credit & Political Risk Insurance industry. Building on the findings and recommendations of the study, ICIEC is working closely with the IsDB Group, other MDBs, and SMIs to educate the market on the benefits of Political Risk Insurance. ICIEC is also exploring further innovative product offerings in order to fill the exposed market gaps in member countries, with the goal of achieving a better and more sustainable future for all.

The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) and the Islamic Development Bank (IsDB) have jointly launched the  COVID-19 Guarantee Facility, an innovative program providing US$2 billion in support of the private sector. The facility will be implemented by the two entities to support COVID-19 hit industries in the OIC member countries and to attract cross-border investments.

The COVID Guarantee Facility’s Framework Agency Agreement was signed by IsDB Group’s President, H.E. Dr. Bandar Hajjar, and ICIEC’s CEO, Mr. Oussama Kaissi, following the approval of IsDB’s Board of Executive Directors in its 336th meeting in June 2020.

The Agency Agreement assigns clear roles and responsibilities between the institutions based on their specializations, laying the foundation for a new operational model for the systematic partnerships between IsDB and IsDB Group entities. This agreement is expected to set the tone for mainstreaming synergies between ICIEC and other IsDB Group entities beyond the COVID Guarantee Facility.

ICIEC’s CEO, Mr. Oussama Kaissi, stated that “the framework agreement opens the door for new forms of cooperation between IsDB Group entities. ICIEC is very focused on addressing the challenges our Member Countries are facing in mitigating the repercussions of COVID-19 and we are dedicated to ensuring that the Corporation will meet all the framework’s requirements for the COVID-19 Guarantee Facility to be implemented successfully.”

The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) signed a Memorandum of Understanding (MoU) with Eximgarant of Belarus (Eximgarant), the Export Credit Agency (ECA) of the Republic of Belarus.

The signed MoU promotes collaborative efforts to support trade and investment between the Republic of Belarus and ICIEC member countries, encouraging joint export credit insurance provisions and other forms of cooperation such as technical assistance and capacity building.

This is the fifth MoU ICIEC has signed this year and the fourth with a European ECA. These partnerships facilitate flexible yet strong agreements for risk sharing in the form of reinsurance or co-insurance, supporting both parties to increase their risk appetite for trade transactions and investments.

“Through close collaboration with Eximgarant and other ECAs, both institutions are able to provide additional insurance capacity,” ICIEC CEO, Mr. Oussama Kaissi, says. “Through the expanded trade coverage supported by these partnerships, firms in member countries can access new markets, grow in existing markets, and in the process generate employment and economic growth. This new partnership with Eximgarant is helping to give a much-needed economic boost to ICIEC member countries, assisting them in recovering from the effects of the pandemic”.

On September 7th, 2020 the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) signed a memorandum of understanding with Compañía Española de Seguros de Crédito a la Exportación, S.A., Compañía de Seguros y Reaseguros, SME (CESCE). CESCE is a Spanish Export Credit Agency (ECA) located in Madrid, Spain that manages the facilitation of export credit insurance on behalf of the State.

The partnership encourages cooperation in supporting trade and investment between Spain and ICIEC member countries through joint export credit insurance provisions in addition to promoting other forms of cooperation such as technical assistance and capacity building.

This MoU follows a string of recent ICIEC partnerships with European ECAs, including Austria’s OeKB and the U.K.’s UKEF. These partnerships facilitate responsive and flexible agreements for risk sharing in the form of reinsurance or co-insurance, encouraging both parties to expand their risk appetite for trade transactions and investments.

“During this time of economic uncertainty, ICIEC has placed high importance on building relationships with peer ECAs,” says ICIEC CEO, Mr. Oussama Kaissi. “By working jointly, the Corporation and its partners can increase the reach and depth of service offerings, therefore enabling both parties to provide the best support possible to our member countries”.

On the 17^th of August 2020, the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) signed a Memorandum of Understanding (MoU) for cooperation with the United Kingdom’s Export Credit Agency, which operates under the name UK Export Finance (UKEF).

The MoU allows for both entities to enter into co-insurance, reinsurance or cooperation agreements to engage in strategic joint projects that support exports and investments from the United Kingdom into ICIEC’s 47 member countries.

The partnership is beneficial for both institutions as they share an interest in promoting and supporting Islamic finance transactions. There is also potential for UKEF to risk-share with ICIEC and leverage on the Corporation’s preferred creditor status, across key international markets for UKEF’s support including UAE, Oman and Bahrain – all ICIEC member countries.

“This cooperation agreement strengthens the existing relationship the Corporation has with UKEF,” says ICIEC CEO Mr. Oussama Kaissi. “Despite, or perhaps due to the troubling times we’re living in, demand is growing for guarantees in OIC markets where credit and political risks pose a greater challenge. Having this partnership between two leading ECAs allows both institutions to take on larger projects with greater impact – better serving the citizens of ICIEC member countries.”

Richard Simon Lewis, | Director & Head of Business Development, Marketing & Communications said “UKEF is committed to the development of new relationships across new sectors, markets and regions which will expand the reach of its world class finance.  I therefore look forward to working with the ICIEC as we continue to help UK companies reach their full exporting potential by helping them to win, fulfil and get paid for international opportunities.’’