EBRD Provides €50 Million Credit Line to Bank of Africa to Support Moroccan Small, Medium Businesses

Rabat – The European Bank for Reconstruction and Development (EBRD) announced on Tuesday issuing a €50 million credit line for Bank of Africa – BMCE Group (BOA) to facilitate lending to micro, small, and medium-sized enterprises (MSMEs) in Morocco. This initiative aims to enhance the resilience and competitiveness of Morocco’s private sector.

The loan is part of the EBRD Financial Intermediaries Framework (FIF) and will assist BOA in addressing the financing gap faced by MSMEs, which often struggle to access adequate funding in Morocco’s banking sector.

With the new credit line, BOA will be able to provide much-needed financial support to these underserved businesses, an EBRD statement explains.

The statement details that part of the loan will be specifically allocated to financing companies operating in value chains located in Tangier and Kenitra, as well as in underserved regions.

The allocation is intended to streamline access to financing for small businesses, promoting economic growth and development in these areas.

The agreement to provide the credit line was signed by Mark Bowman, the EBRD Vice President for Policy and Partnerships, Brahim Benjelloun-Touimi, Director and General Manager of Bank of Africa, and Khalid Nasr, BOA’s Executive General Manager responsible for CIB and Morocco.

In the statement, Bowman expressed his satisfaction with the facility, stating that it “will support one of the EBRD’s key partners in Morocco in this challenging global economic environment, which is aggravated by the war in Ukraine, and help mitigate its impact on MSME lending.”

Bowman also expressed hope that the recently approved increase in the Trade Facilitation Programme (TFP) limit would contribute to filling trade finance gaps and foster economic resilience in the country.

For his part, Benjelloun-Touimi emphasized the significance of the partnership between BOA and the EBRD.

He described the signing as a milestone in their long-standing relationship and highlighted BOA’s commitment to inclusive finance, particularly for small and medium-sized enterprises.

“We remain resolute in our quest for a positive impact on our customers, our stakeholders, and more generally on the environment of our activities,” Benjelloun-Touimi added.

In addition to the credit line, the EBRD has increased the total trade line limit granted to Bank of Africa under its Trade Facilitation Programme from $150 million to $175 million.

The increase will enable BOA to issue guarantees to confirming banks and provide cash financing for pre-export, post-import financing, and local distribution.

It will also facilitate the importation of a wide range of goods into Morocco, benefitting BOA and its private MSME and corporate clients.

The expanded limit also presents an opportunity for BOA to further support Morocco’s green economy, aligning with the EBRD’s Green Trade Facilitation Programme. BOA will engage in sourcing transactions for scrap metal and forestry from sustainable sources, thereby contributing to environmentally responsible practices.

BOA will also receive comprehensive technical assistance from the European bank. including advisory services, access to the EBRD Trade Finance e-Learning Programme, and interactive workshops covering various trade finance topics.