Rabat- The African Development Bank (AfDB) and Banque Centrale Populaire (BP) have entered into a landmark $70 million risk-sharing agreement (RSA) aimed at invigorating private sector financing and enhancing trade across Africa.
This significant agreement allocates an overall risk limit to local African banks, bolstering their ability to support economic activities on the continent.
The collaboration between AfDB and BCP is set to enhance financial inclusion for economic operators, with a special focus on small and medium-sized enterprises (SMEs). By consolidating the foreign trade capacities of these enterprises, the initiative is projected to catalyze approximately €200 million in trade.
“This partnership with BCP includes objectives to diversify Morocco’s production capacity, strengthen its competitiveness, generate additional tax revenues, while creating new job opportunities,” commented Achraf Tarsim, AfDB’s Country Manager for Morocco.
The agreement underscores BCP group’s ongoing commitment to financing trade transactions in Africa. It presents an opportunity for BCP to further support its clients and fortify relationships with local African banks, which are increasingly challenged by declining financing and confirmation lines from foreign correspondents.
“Hand in hand, we are offering solutions to unleash the potential of companies that believe in their continent, invest in it, and create added value and jobs,” said Mohamed El Azizi, AfDB’s Director General for North Africa, at the signing ceremony.
The new RSA is expected to significantly bolster BCP’s capacity to finance trade across Africa, providing crucial support for commercial transactions of African companies. It is also aimed to promote better integration of local banks into the international financial system.
“This new agreement with the African Development Bank represents an ideal model of South-South collaboration, offering a comprehensive solution adapted to the development needs of pan-African trade and Africa’s trade with the rest of the world,” stated Kamal Mokdad, CEO of BCP and the group’s international operations.
The AfDB-BCP partnership reflects a shared vision of promoting sustainable economic growth and development in Africa by empowering SMEs and enhancing trade capabilities, thereby contributing to the broader goal of economic resilience and prosperity across the continent.
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