The African Development Bank (AfDB) and Banque Centrale Populaire (BCP) have signed a $70 million risk-sharing agreement (RSA) to promote private sector financing and stimulate trade in Africa. This amount represents a global risk limit allocated to local African banks.
The agreement between the two institutions will enhance the financial inclusion of economic operators, particularly small and medium-sized enterprises (SMEs), and strengthen their foreign trade capabilities. It is expected to catalyze nearly 200 million euros in trade exchanges.
This new RSA will further consolidate BCP Group’s commitment to financing trade transactions in Africa. It will enable BCP to better support its customers and strengthen its relationships with local African banks, which are increasingly facing a decline in financing and confirmation lines from their foreign correspondents.
“Hand in hand, we offer solutions to unlock the potential of businesses that believe in their continent, invest in it, and create added value and jobs,” said Mohamed El Azizi, Director General of the African Development Bank for North Africa, during the signing of the agreement.
“This partnership with BCP includes objectives to diversify Morocco’s production capacity, enhance its competitiveness, create additional tax revenues, and generate new employment opportunities,” added Achraf Tarsim, the Bank’s Country Manager for Morocco.
“This new agreement with the African Development Bank represents an ideal model of South-South collaboration, offering a comprehensive solution tailored to the development needs of pan-African trade and Africa’s trade with the rest of the world. It provides both financing solutions and support for the commercial transactions of African businesses and promotes a better integration of local African banks into the international market,” stated Kamal Mokdad, Director General of BCP and International of the group.
