Africa Finance Corporation Issues $250 million Sharia-law Compliant Trade Loan to Egypt.

Africa Finance Corporation(AFC) the private sector-led infrastructure investment solution provider and International Islamic Trade Finance Corporation (ITFC) are to provide a $250 million Sharia-compliant trade loan facility to Egypt.

Why is this important: Egypt was Africa Finance Corporation's first North African sovereign shareholder, but the country has had its fair share of economic challenges in recent years as it navigates the fallout of the war in the Middle East. The loan has been carefully structured following Sharia principles and will be used to support purchases of certain essential commodities.

The bottom line: As the Egyptian government tries to transform the economy the loan will help improve food security by funding the imports of key agricultural commodities, like wheat, corn, vegetable oils, and sugar through the General Authority for Supply Commodities (GASC) and the purchase of essential fuel and petroleum products through the Egyptian General Petroleum Corporation (EGPC)