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Economy

AfDB and Banque Centrale Populaire Join Forces to Catalyze African Trade and Entrepreneurship

Tuesday 21 May 2024 - 13:03

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In a landmark move to bolster private sector financing and invigorate trade across the African continent, the African Development Bank (AfDB) and Banque Centrale Populaire (BCP) have inked a groundbreaking $70 million Risk-Sharing Agreement (RSA). This substantial financial commitment represents a global risk limit allocated to African local banks, poised to unlock a wave of economic opportunities.

The collaboration between these two esteemed institutions aims to strengthen financial inclusion for economic operators, with a particular focus on small and medium-sized enterprises (SMEs), while fortifying their capabilities in the realm of international trade. Projections indicate that this agreement could potentially catalyze trade flows amounting to nearly €200 million.

This new RSA serves to solidify BCP Group's unwavering commitment to financing trade transactions across Africa. It empowers the group to extend enhanced support to its clientele and reinforce its relations with local African banks, many of which are grappling with dwindling financing and confirmation lines from their foreign correspondents.

"Hand in hand, we offer solutions to unlock the potential of enterprises that believe in their continent, invest in it, and create added value and employment opportunities," affirmed Mohamed El Azizi, Director General of the African Development Bank for North Africa, as he penned the agreement.

Achraf Tarsim, the Bank's Country Manager for Morocco, added, "This partnership with BCP encompasses objectives of diversifying Morocco's production capacity, bolstering its competitiveness, generating additional tax revenues, while simultaneously creating new employment prospects."

Kamal Mokdad, Chief Executive Officer of BCP and the Group's International Operations, emphasized the significance of this collaboration, stating, "This new convention with the African Development Bank represents an ideal model of South-South cooperation, 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 enterprises, while fostering a stronger international foothold for local banks across the continent."

About the BCP Group :
The Banque Centrale Populaire Group is one of Morocco's leading banking institutions, drawing its strength from its values of solidarity and its unique organizational structure in the country. Composed of 8 Regional Popular Banks (BPR) with a cooperative vocation, the Banque Centrale Populaire (BCP) serves as the Group's central body, structured as a publicly traded company. The Group also comprises specialized subsidiaries, foundations, banks, and representations abroad. The Banque Populaire Group maintains a presence in 32 countries worldwide and is the leading collector of savings (26% market share) and a frontrunner in financing the Moroccan economy (24% market share).

Source : PR+