In a move to bolster Africa’s private sector and enhance intra-continental trade, the African Development Bank (AfDB) and Bank of Africa (BOA) signed a €50 million risk-sharing agreement on Wednesday in Rabat. The partnership was formalized during the Africa Investment Forum (AIF), a pivotal event running until December 6.
This agreement will empower BOA to support local banks across Africa by expanding their international financing and confirmation lines with foreign correspondents. It also opens the door to larger-scale financing for key industries, including agriculture, pharmaceuticals, automotive, transportation, and telecommunications.
Transforming trade for SMEs across Africa
The partnership aims to generate nearly €200 million in trade opportunities for small and medium enterprises (SMEs) operating in over 20 African countries. Ahmed Rashad Attout, Director of the Financial Sector Development Department at AfDB, emphasized during the signing ceremony the ambition to enhance financial inclusion for SMEs engaged in international trade.
“Across Morocco and the continent, we are committed to enabling SMEs to unlock their full potential by scaling up their operations. This strategic partnership with BOA reflects our shared vision to foster broader financial inclusion,” Attout stated.
BOA’s vision for African trade growth
Khalid Nasr, Managing Director of BOA in charge of Morocco and Corporate & Investment Banking (CIB), hailed the partnership as a milestone in BOA’s commitment to promoting African foreign trade.
“This risk-sharing agreement is a significant step in facilitating access to financing for African SMEs, opening new avenues for growth,” Nasr remarked. He added that the collaboration with a prestigious institution like AfDB will invigorate Africa’s economy while fostering sustainable and inclusive growth across the continent.
AIF 2024: Pioneering strategic investments in Africa
The Africa Investment Forum (AIF) 2024, themed “Leveraging Innovative Partnerships to Scale Up,” serves as a critical platform for driving strategic investments that support Africa’s economic transformation. It provides direct access to high-impact transactions, positioning the continent for a future of dynamic growth and development.
By aligning with such initiatives, the €50 million risk-sharing agreement reflects a broader commitment to harnessing partnerships for transformative impact, paving the way for SMEs to thrive and for Africa’s private sector to reach unprecedented heights.
