Rabat – The African Development Bank (ADB) and the European subsidiary of Attijariwafa – Attijariwafa Bank Europe – signed a €100 million risk-sharing agreement on Thursday, aiming to enhance the competitiveness of African economies.
Risk-sharing agreements will incentivize the Attijariwafa Bank Group to issue more loans for clients that are usually considered subprime, as the ADB has agreed to step in to mitigate the financial loss caused by these customers defaulting on loan payments.
The signing ceremony took place in Casablanca, and the deal is poised to inject nearly €500 million in trade across a number of African economies.
The initiative aims to enhance competitiveness, generate increased tax revenues, and pave the way for the creation of new jobs; thereby propelling economic growth across the region, ADB said in a statement.
“The risk-sharing mechanism will guarantee African companies stable access to financing for their foreign trade operations, which is an important vector for accelerating the implementation of the African Continental Free Trade Area,” the statement reads.
Commenting on the news, Mohamed El Azizi, ADB’s Director General for North Africa, said that by joining forces with Attijariwafa Bank, the ADB is “not just sharing risks,” but also “creating new opportunities for all those who undertake and project themselves in Africa.”
On his part, Achraf Tarsim, ADB Country Manager for Morocco, said that the bank aims to “break the continent’s financial isolation. ” They hope to do this through supporting “African champions” who they believe “can strengthen the financial inclusion of businesses and help them to expand on the continent.”
Meanwhile, Younes Belabed, Attijariwafa Bank Europe’s Managing Director, shed light on his bank’s efforts to be part of the development momentum in Africa. “For more than a decade, the Attijariwafa Bank Group has been committed to the development of the African continent in a spirit of inclusive and mutually supportive growth,” he said.
“With the partnership set up between the African Development Bank and Attijariwafa Bank Europe, our Group is consolidating its position as a major player in strengthening the African economic fabric and a major contributor to the revitalization and development of North-South exchanges,” the director added.
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