The International Islamic Trade Finance Corporation (ITFC) has signed a US$75mn syndicated murabaha financing agreement in favour of the government of Senegal, for the procurement and processing of peanuts.

Under the terms of the agreement, Suneor (Senegal’s largest private peanut company) will act as executing agency, purchasing and processing over 150,000 tonnes of peanuts (also called groundnut) into oil and cake (which serves as animal feed), and exporting to international markets.

This agreement will finance a significant part of the 2015/16 peanut campaign, with total output expected to reach 1 million tonnes following a good rainy season.

ITFC previously provided US$30mn to the government of Senegal and Suneor for financing the 2013/14 groundnut season.

Amadou Ba, Senegal’s minister of economy, finance and planning, says: “The groundnut sector in Senegal is currently under restructuring and we are expecting a high yield for groundnut this year, and this financing will play an important role to support this year’s groundnut season. Under the Senegal Emerging Plan, the country is positioning itself as a trade hub in West Africa and ITFC’s support is important to help realise this plan.”

The groundnut sector employs, directly and indirectly, around 40% of the Senegalese population, and the deal will boost farmers’ income and improve their living conditions. Moreover, export growth is expected to improve the country’s overall export revenues and employment level, contributing to overall economic development and poverty reduction.