Active internationally, BMCE Bank promotes education and community development in rural areas of Morocco as well as in Sub-Saharan countries.
Rabat – UK’s development finance institution CDC Group will acquire an equity stake of 5% in BMCE Bank of Africa through a primary capital injection of $200 million. The two groups announced the investment in a press release.
According to the press release, CDC’s investment will help accelerate BMCE’s expansion across Africa while also allowing the Bank to leverage CDC’s wide in-country networks.
The British institution has over 70 years of investment experience in Africa and in Asia, with more than 700 businesses in its African portfolio. CDC is strongly committed to the continent and plans to invest up to $4.5 billion in Africa across different sectors and through various investment solutions by 2022.
CDC invests in financial institutions to advance financial inclusion and bring better access to affordable finance for individuals and small and medium-sized enterprises (SMEs), to help them strengthen their communities.
The strategic partnership between BMCE and CDC represents one of the largest single investments by a British institution in the Moroccan financial sector and is a testimony to their joint vision and commitment to strengthening Africa’s economy and improving people’s lives.
Access to affordable and innovative finance, financial education, and business advice is essential to ensure economic development. This is particularly true for SMEs, which constitute the backbone of Africa’s economy and are a key driver of economic growth. As these businesses grow, they create jobs and wealth in their communities.
Environmentally sustainable development
The promotion of environmentally sustainable development is an important component of the partnership. BMCE and CDC recognize that sustainable development can serve as a driver to enhance economic growth in African economies and empower African societies.
As part of their work in this area, BMCE and CDC seek to ensure that environmental and social risks are taken into consideration at the transaction level and to work with companies to help them incorporate sustainable practices in their business operations.
“The ultimate goal of our agreement goes beyond the US$ 200 million investment,” said Othman Benjelloun, Chairman and CEO of BMCE Bank of Africa. “Rather, it is an alliance aimed at developing Morocco and Africa and ensuring that Africa’s human capital achieves a sense of fulfillment”.
“Investing in financial institutions is a powerful mechanism through which we can deliver impact at scale,” said Nick O’Donohoe, CEO of CDC Group.
“The capital markets in countries such as Morocco are integrated across Africa and are critical to the success of more economically challenging environments in the region. We see these countries as regional hubs, strong platforms from which to provide affordable finance, goods, and services to millions of people,” added O’Donohoe.
“Our support will allow the Bank to grow its offering, especially in the SME segment, deepen penetration of banking services and promote financial inclusion for all,” he pointed out.
Present in 31 countries throughout Africa, Europe, Asia, and North America, BMCE Bank of Africa is today the most internationally oriented Moroccan banking group. The bank employs more than 15,200 people around the world, with more than 1,675 branches serving nearly 6.6 million customers.
The BMCE bank is also a major environmental player, with a hand in 14 001 certified, and social responsibility projects.
The bank’s Medersat.com program promotes education and community development in rural areas in Morocco and Sub-Saharan Africa. Innovative sustainable financing programs and products in partnership with major international financial institutions add to its environmental portfolio.
Since its establishment in 1948, the UK owned CDC Group has been investing in Africa and South Asia with the aim of supporting economic development to create jobs.
With net assets of $6.48 billion, CDC takes a flexible approach and provides capital in all its forms, including equity, debt, mezzanine, and guarantees, to meet businesses’ needs and achieve development impact.