Djibouti, IDB sign US$75mn agreement to reduce fuel prices

Djibouti IDB sign US75mn agreement to reduce fuel pricesIDB has signed agreements with several of its member countries in Africa to help improve their economic conditions. (Syda Productions/Fotolia)Djibouti has approved a US$75mn financing agreement with the International Islamic Trade Finance Corporation (IFTC), a unit of Saudi Arabia-based Islamic Development Bank (IDB) to help the nation to buy refined petroleum products, its energy minister said

Djiboutian energy minister Yacin Houssein Bouh said the deal will allow Djibouti to gradually reduce fuel prices and ensure a regular supply of petroleum products - for vehicles, power plants and fuel to households for cooking.

“This project funding is to stabilise and steady prices of refined petroleum products in the event of sharp fluctuations in oil prices on international markets,” he told Reuters late on Tuesday.

IFTC is an autonomous entity within the IDB that aims to advance trade and improve the economic condition of people across the Islamic world. Djibouti is a member country of the IDB with 94 per cent of its population Muslim. In recent years the Horn of Africa nation has promoted Islamic finance in order to increase banking penetration and improve infrastructure.

“The adoption of this project will enable the International Society of Hydrocarbons of Djibouti to accomplish its import mission of oil and oil products at the best prices,” added Bouh.

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