Comoros Secures €40 Million Murabaha Deal with ITFC to Boost Energy Security

The International Islamic Trade Finance Corporation (ITFC) has signed a €40 million ($45.43 million) Murabaha financing agreement with Comoros to bolster the East African nation’s energy sector, according to a report from the Saudi Press Agency.

The deal, which comes as part of a broader strategy to support Comoros’ economic development, is expected to ensure a steady supply of refined petroleum products critical to multiple sectors including agriculture, manufacturing, and services. ITFC, a member of the Islamic Development Bank (IsDB) Group, emphasized that the agreement also aligns with the United Nations’ Sustainable Development Goal 7 — promoting access to affordable, reliable, sustainable, and modern energy for all by 2030.

“This agreement addresses Comoros’ immediate energy needs while enhancing its long-term resilience to global supply disruptions,” ITFC said in a statement. “Ensuring uninterrupted access to fuel is essential for maintaining economic stability and supporting national development.”

The €40 million Murabaha financing falls under a larger $330 million framework agreement signed in September 2023. That deal aims to meet up to 100% of Comoros’ annual petroleum requirements, marking a major step toward energy security and economic sustainability.

Murabaha is a Shariah-compliant financial structure widely used in Islamic trade finance. It involves the sale of goods at a markup, allowing buyers to defer payment while avoiding interest, in accordance with Islamic law. This mechanism is especially useful in development-focused projects such as energy procurement, infrastructure, and industrial growth.

The ITFC’s support for Comoros is not new. Since its inception in 2008, the institution has extended more than $657 million in total financing to the island nation. The latest deal reflects a deepening partnership and ITFC’s ongoing commitment to strengthening economic cooperation with African countries.

“Comoros is a priority partner for the ITFC, and this latest agreement illustrates our dedication to inclusive, sustainable development across the African continent,” said an ITFC spokesperson.

The funding will also aid Comoros in diversifying its energy mix by encouraging renewable energy adoption and enhancing fuel efficiency. These efforts are part of a broader global push to expand sustainable energy infrastructure in developing nations.

The ITFC, which serves as the trade finance arm of the Islamic Development Bank, has provided over $83 billion in financing to member states of the Organization of Islamic Cooperation (OIC). Its mission is to improve socio-economic conditions through trade facilitation, financial support, and capacity-building programs.

This agreement comes at a time when global energy markets remain volatile due to geopolitical tensions and supply chain disruptions, making such partnerships critical for vulnerable economies like Comoros.