International Islamic Trade Finance Corporation (ITFC) Strengthens Comoros’ Energy Security and Food Resilience with Innovative Trade Finance Solutions

The International Islamic Trade Finance Corporation (ITFC) (www.ITFC-IDB.org), a member of the Islamic Development Bank (IsDB) Group, continues to make significant progress in its partnership with the Union of Comoros, delivering impactful trade finance solutions to bolster the country’s energy security, food supply, and economic diversification.

With no domestic oil production and modest agricultural output, Comoros depends heavily on imports to power its economy and sustain its population of approximately 850,000. Since 2008, ITFC has emerged as a critical partner, approving over US$799.3 million in trade finance to support the country’s development priorities.

Powering a Nation Through Energy Financing

Since its inception, ITFC has approved US$655.4 million in energy financing for Comoros, accounting for over 80% of all ITFC support to the country. This investment has allowed Comoros to secure all its annual imports of refined petroleum products, estimated at 100,000 m³, ensuring the stability of its energy supply even amid global price shocks.

In 2023, ITFC partnered with Société Comorienne des Hydrocarbures (SCH), the state-owned hydrocarbons company, to implement an Integrated Trade Solution (ITS) that combined financing with capacity building. As part of a Reverse Linkage program, SCH staff trained at Tunisia’s STIR Refinery, gaining vital skills in trade negotiations, Islamic finance, and oil storage management. This initiative safeguards around 480 direct jobs, with nearly 200 of them held by women. Over 70% of petroleum imports are sourced from OIC member countries, reinforcing intra-OIC trade and regional cooperation.

Securing Food Supply Amid Global Price Shocks

In 2024, ITFC approved a new EUR 20 million trade finance facility to strengthen food security in the Union of Comoros. The facility will finance the import of essential staple foods, including rice, flour, sugar, oil, and meat, providing critical support to the nation’s food supply chain.

In 2023, Comoros imported 91,929.94 metric tons of foodstuffs valued at EUR 62.7 million. The new facility will cover about 31.9% of annual food procurement needs, enabling households to access food at more affordable prices. This financing supports 50 to 75 local micro and small enterprises, sustaining over 2,500 jobs. Since its establishment, ITFC has provided over US$143.9 million in financing to support the food security and agriculture sector.

Additionally, ITFC promotes Islamic finance in Comoros through its partnership with local banks, namely, AFG Bank and BDC.  This expands access to Letters of Credit (L/C) confirmation facilities and strengthens the domestic financial sector, aligning with the government’s diversification agenda.

Through these strategic interventions, ITFC continues to play a vital role in advancing Comoros’ sustainable development agenda by ensuring energy security, strengthening food systems, and empowering local enterprises. The Corporation’s integrated trade finance solutions enhance resilience to external shocks and promote inclusive economic growth and regional cooperation.