African Development Bank approves €70 million trade financing facility for Morocco’s Bank of Africa

The African Development Bank (AfDB) has approved a €70 million trade financing facility for Morocco’s Bank of Africa, aimed at enhancing access to trade finance across the continent, particularly for small and medium-sized enterprises (SMEs). The announcement was made during a board meeting in Abidjan.

The financing package includes a €50 million Risk Participation Agreement (RPA) and a €20 million Trade Finance Credit Line (TFCL). The RPA will assist Bank of Africa in providing support to African banks struggling to secure financing and confirmation lines from foreign correspondents. Meanwhile, the TFCL will deliver essential funding for Moroccan SMEs engaged in international trade.

This initiative is projected to catalyze up to €300 million in trade over the next three and a half years. Bank of Africa, Morocco’s third-largest bank, currently operates in 32 countries, including 20 across Africa.

The deal aligns with a broader strategy to diversify Africa’s economy, enhance competitiveness, and create employment opportunities. Ahmed Attout, Director of Financial Sector Development at AfDB, emphasized the significance of the partnership, stating, “This partnership increases access to trade finance on the continent, particularly for SMEs in transition states.”

Achraf Hassan Tarsim, AfDB’s country head for Morocco, highlighted the initiative’s role in promoting financial inclusion for SMEs involved in foreign trade.

Through improved access to finance for SMEs, especially in the realm of international trade, this partnership aims to foster sustainable economic development across Africa. It strengthens Bank of Africa’s capacity to enhance commerce and financial inclusion continent-wide, with expectations that the deal will invigorate regional economies and create jobs.

This collaboration marks a crucial step toward making SMEs in international trade more financially resilient and growth-oriented.