The African Development Bank Group (AfDB) has approved a EUR 70 million trade finance facility for Bank of Africa Morocco (BMCE) to enhance access to trade finance across Africa to support small and medium-sized enterprises (SMEs) operating in transition states, which are crucial for economic growth.
Ahmed Attout, director of the Bank’s Financial Sector Development Department, said, “The African Development Bank, rated AAA by the largest rating agencies, is joining forces with the Bank of Africa Morocco to promote access to trade finance on the continent.”
The facility consists of a Risk Participation Agreement (RPA) of EUR 50 million and a Trade Finance Line of Credit (TFLOC) totaling EUR 20 million to will enable BOA to provide enhanced support to local banks in their international operations, particularly as they face declining financing and confirmation lines with foreign counterparts.
Achraf Hassan Tarsim, head of the African Development Bank’s Country Office in Morocco, expressed enthusiasm for the collaboration. “We are delighted with this first partnership with BOA, a leading player in Africa. Together, in Morocco and across the continent, we are strengthening financial inclusion for SMEs involved in foreign trade.”
The RPA is expected to enable BOA to extend its financing capabilities, facilitating increased trade financing to local banks. Additionally, the TFLOC will offer Moroccan SMEs in vital sectors, including health, agriculture, pharmaceuticals, automotive, and transport, improved access to the capital necessary for growth.
This facility is projected to catalyze nearly EUR 300 million in trade over the next three and a half years. The partnership will strengthen production diversification and competitiveness in member countries, ultimately raising additional tax revenues and creating new job opportunities.
The African Development Bank’s support for BOA represents a significant step toward enhancing trade finance in Morocco, positioning the country as a key player in the African economic landscape.