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The International Islamic Trade Finance Corporation (ITFC) has approved a US$1.5bn facility for Egypt’s government aimed at bolstering imports of energy and food imports into the country.

The deal is comprised of US$700mn for Egypt’s General Authority for Supply Commodities (GASC), which has historically been tasked with securing supplies for the country’s bread subsidy scheme, as well as an US$800mn loan for the Egyptian General Petroleum Corporation.

Funding is being extended as part of a five-year framework agreement, worth a total of US$6bn, which aims to enhance growth across critical sectors, including energy, food security, and small and medium-sized enterprises (SMEs).

This year’s commitments include trade financing that will support energy and food security, as well as SMEs, the ITFC says.

Sherif Farouk, Egypt’s minister of supply and internal trade, says the financing of food imports will help fulfil “the state’s obligations towards its citizens”, adding: “The cooperation with the ITFC has not only been a financial commitment, but also a main pillar in the state’s efforts to secure its strategic needs of basic goods.”

Rania Al-Mashat, Egypt’s minister of planning, economic development and international cooperation, says in an ITFC statement that the deal “enhances the availability of petroleum products and energy”.

Egypt has a long-standing bread subsidy scheme that costs upwards of US$2.5bn annually and is relied upon by an estimated 70 million citizens, making the country one of the largest importers of wheat.

Egypt staved off the threat of a sovereign default last year, after it secured roughly US$50bn in funding from lenders including the Abu Dhabi Wealth Fund and the International Monetary Fund, but the country still has long-standing concerns over its import dependency. In 2024, a shortage of gas supply caused rolling blackouts, a halt to LNG exports and difficulties producing fertiliser.

Since 2008, the ITFC has committed over US$18.7bn to Egypt. The multilateral trade finance institution say its latest funding package will also boost Egyptian exports and create jobs for young people and women.

As part of the agreement, the ITFC and Egypt will seek to advance existing initiatives such as the Arab African Trade Bridges programme and the second phase of the Aid for Trade Initiative for Arab Countries.