The Board of Directors of the African Development Bank Group (AfDB) has approved a trade finance facility of EUR 70 million for Bank of Africa Morocco, (BOA).
“The African Development Bank, which is 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, in particular providing support for SMEs operating in transition States” said Ahmed Attout, director of the Bank’s Financial Sector Development Department.
The facility comprises a Risk Participation Agreement (RPA) of EUR 50 million and a Trade Finance Line of Credit, TFLOC, of EUR 20 million.
“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 small and medium-sized enterprises, SMEs, involved in foreign trade, to help them to operate more widely,” added Achraf Hassan Tarsim, head of the African Development Bank’s Country Office in Morocco.
The RPA will offer Bank of Africa Morocco the opportunity to provide more support to local banks on the continent in their international operations, as they increasingly face a decline in financing and confirmation lines with their foreign counterparts.
In addition, the TFLOC will facilitate access to finance for Moroccan SMEs working in the key sectors of health, agriculture, the pharmaceutical and automotive industries, and transport.
According to the report distributed by the APO Group on behalf of African Development Bank Group (AfDB), the facility should catalyse almost EUR 300 million in trade over a 3.5-year period.
More broadly, the aim of the cooperation is to strengthen countries’ diversification of production and competitiveness, raise additional tax revenues and create new job opportunities.
GIK/APA