ITFC signs a €100m financing agreement to support Senegal’s energy sector

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ITFC signs a €100m financing agreement to support Senegal’s energy sector

The International Islamic Trade Finance Corporation (ITFC) approved a Euro 100 million Murabaha financing to SENELEC (Senegal National Power Company).

The company’s strategic mandate is to ensure the production, transmission, and distribution of electricity in Senegal. This approval reflects ITFC’s commitment to supporting the availability and affordability of electricity in member countries.

The facility is purposed to cover almost 20% of SENELEC’s financing needs to purchase refined petroleum products, directly impacting the production, transmission, and distribution of electrical energy throughout the country.

The operation comes to support the Senegalese Government’s efforts to ensure steady availability of electricity and provide the required energy for the development of all economic sectors while contributing to the SDG 7 “Affordable Energy” and SDG 8 “Decent work and economic growth.”

Commenting on the signing, Eng. Hani Salem Sonbol, ITFC CEO said, “ITFC subscribes to the sustainable development goals and avails itself to support Member-Countries achieve them.

In the same vein, we believe access to electricity is crucial for individuals and businesses especially for a post-covid global economic recovery, and we see this new financing made available to SENELEC as our contribution to securing the provision of such a crucial need. We have had a very good partnership with Senegal since our inception and we look forward to supporting the country on its quest for economic growth and development.”

Currently, the country’s electricity access reached 88% of the population in urban areas, while in rural areas it is limited to 38%, although increasing. The national overall electricity access rate is 64%.

Although this rate is one of the highest in the sub-region, Senegal is not relenting in its effort to reach its set objective of 100% electricity coverage and connection of at least 90% of rural households by 2025.

Hence, this Euro 100 million Murabaha financing is a welcome development as it will help meet the growing electricity demand, improve the reliability of power supply, reduce losses, and expand access to previously unserved communities.

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