Casablanca – The African Development Bank (AfDB) has announced the approval of a significant financing package worth approximately $78.3 million for Bank of Africa Morocco. This initiative aims to enhance trade financing capabilities throughout the African continent, particularly benefiting small and medium-sized enterprises (SMEs) engaged in international trade.
In a detailed statement, the AfDB outlined that the funding consists of a $55 million Risk Participation Agreement and a $22.3 million Trade Finance Credit Line. The Risk Participation Agreement will empower Bank of Africa to provide much-needed support to local banks across Africa that are increasingly facing challenges in securing financing from foreign correspondents. Simultaneously, the Trade Finance Credit Line will facilitate access to capital for Moroccan SMEs involved in key sectors such as health, agriculture, pharmaceuticals, automotive, and transport.
This financing initiative is expected to stimulate trade activities worth around $334 million over a projected timeline of three and a half years. Ahmed Attout, the Director of Financial Sector Development at the AfDB, emphasized the importance of this partnership in expanding access to trade finance on the continent, particularly for SMEs operating in transitional economies.
Achraf Hassan Tarsim, the AfDB’s country representative in Morocco, expressed enthusiasm for this collaboration, noting that it represents a pivotal first step toward enhancing financial inclusion for SMEs engaged in foreign trade. The partnership aims to empower these businesses, enabling them to broaden their market reach and enhance their competitiveness both in Morocco and across Africa.
This agreement aligns with the AfDB’s broader mission to combat poverty and improve living conditions across the continent. By facilitating trade financing, the initiative seeks to diversify economies, generate additional tax revenues, and create new job opportunities, ultimately contributing to sustainable economic development in the region.
Established in 1964, the AfDB has played a crucial role in financing infrastructure projects and promoting economic growth throughout Africa. With this new funding for Bank of Africa Morocco, the bank continues its commitment to fostering economic resilience and development across the continent.