Islamic bank supports Cameroon cotton industry

The International Islamic Trade Finance Corporation (ITFC), a member of the Islamic Development Bank (IDB) Group, has signed a €100 million ($118 million) syndicated agreement with Cameroon's government to support over 300,000 cotton farmers.

Economy Minister Louis Paul Motaze, who is also IDB Group Governor for Cameroon, signed the agreement in the country's capital Yaounde on Tuesday.

"This financing is directly providing a means of livelihood to over 300,000 farmers and indirectly to over three million people in the North and Far-North regions of Cameroon by enabling the government to provide the needed agricultural inputs to the farmers and ensure timely payment of cotton harvests of the farmers," Motaze said during the signing ceremony.

"This financing is tailored to suit the financing needs of cotton farmers, and resembles the ITFC drive to create an impact on the people in our member countries," Abou Jallow, ITFC general manager of operations, said.

According to a statement, Sodecoton, Cameroon's cotton development company, will distribute fertilizer to farmers, buy their raw cotton and process it for exportation.

Cotton is one of Cameroon's main exports, and an important revenue-generating vehicle for the country.