The African Development Bank (AfDB) Group’s Executive Board has approved a $50 million risk-sharing agreement that will aid the Bank of Morocco.
The agreement is a 50/50 risk-sharing system in which up to $100 million portfolio in transactions will be covered.
“This partnership with BCP will help unleash the growth potential of intra-African trade, which is an important vehicle for regional integration,” Mohamed Azizi, AfDB director general in North Africa, said.
The agreement will also help the African markets that are growing in their demand for trade finance and will help with regional integration in term of tax revenue and Moroccan exporation. Areas that have sizable demand for trade finance include health, service and industry and agri-food.
Many African banks are low in capitalization, decreasing their options when securing credit lines from international banks.
“This operation will strengthen exchanges between the Maghreb and sub-Saharan Africa,” Stéphane Nalletamby, AfDB director for financial sector development, said.
