OCP Africa and the International Islamic Trade Finance Corporation (ITFC) announced the signing of a Memorandum of Understanding (MOU). Besides, to promote strategic financing, innovation and agricultural capacity-building measures in Africa.
The agreement which can strengthen collaboration
The agreement, which aims to increase production yields and increase the incomes of African farmers. Too, signed by Karim Lotfi Senhadji and Eng. Hani Salem Sonbol, Managing Director of OCP Africa and Managing Director of ITFC respectively.
Under this agreement, however, the subsidiary of the OCP Group and the member institution of the Islamic Development Bank (IDB) Group agree to strengthen their collaboration in various areas. Besides, that could contribute to the improvement of the agricultural sector on the continent.
These include training farmers in good agricultural practices. Soil analysis and fertilization advice to help increase agricultural yields. Moreover, support for innovation and digital transformation of agriculture. And, capacity building and support for young people for sustainable and inclusive development, the two sides said in a joint statement.
A new campaign of the OCP
As part of this partnership, the signatory parties plan to jointly launch a new campaign. Also, it is the OCP School Lab in Senegal, OCP Africa’s flagship program.
Moreover, this program aims to increase the yields and incomes of small farmers. On strategic crops through “interactive training sessions with demonstrations on good agricultural practices. And, the dissemination of illustrated videos in local dialects for greater impact”, it is recalled.
The program also offers a mobile laboratory to conduct soil analyses. Moreover, using the latest innovations (infrared rays, Data, and computerized machines) and training on soil needs and fertilizer recommendations, the statement added.
Cooperation between OCP Africa and the ITFC
The cooperation between OCP Africa and the ITFC, which provides important support contributing to food security in sub-Saharan Africa, “is fully in line with the ITFC’s mandate. To assist in the development of strategic value chains in member countries of the Islamic Cooperation Organization (OIC),” said Eng. Hani Salem Sonbol assuring that this partnership is a real asset for the promotion of the agricultural sector in Africa.
In this regard, he noted that “the services provided by the ITFC for the agricultural sector. Whether in terms of trade finance or technical assistance, increased considerably in recent years. Too, targeting crucial sectors of value chains, ranging from agricultural inputs to processing and pre-export to export”, indicating that the sector is also one of the value chains that are ready for innovation and SME development.
“The smallholder farmer is at the heart of OCP Africa’s strategy to support the transition from subsistence agriculture to a modern and sustainable agro-industry,” said Karim Lotfi Senhadji.
Also quoted in the communiqué, he said that “our objective is to contribute to strengthening the continent’s agricultural ecosystems in order to enable African farmers to prosper”.
OCP Africa secures fertilizer production
In this context, the merger between the ITFC and the entity founded in 2016 by the OCP Group “will support our efforts to train farmers on best agricultural practices. Analyze soil for specific fertilizer recommendations, facilitate access to finance and improve market access,” he said.
Dedicated to the African continent, OCP Africa actively works to secure competitive fertilizer production near major agricultural basins. Also, strengthen existing logistics capacities and contribute to the development of new local distribution networks, serving the entire agricultural sector.
As for the ITFC, the communiqué recalls that trade finance approvals for the food and agriculture sector amounted to $749.6 million in 2018. This corresponds to 14.4% of the total trade finance portfolio, an increase of 71% compared to the previous year. He added: “Sub-Saharan Africa accounts for 50% of the food and agriculture sector funding provided by ITFC in 2018”.
The original report is published on libe. This translated report is provided by Born2Invest.