EBRD and Bank of Africa collaborate to strengthen Morocco’s private sector through a €50 million credit line aimed at underserved businesses.
EBRD, The European Bank for Reconstruction and Development, and Bank of Africa – BMCE Group (BOA) have announced a strategic partnership aimed at supporting micro, small, and medium-sized enterprises (MSMEs) and enhancing trade in Morocco. Through a €50 million credit line, provided under the EBRD Financial Intermediaries Framework (FIF), BOA will be empowered to lend to underserved businesses, contributing to the resilience and competitiveness of the country’s private sector.
EBRD and BOA – Supporting MSMEs with financial solutions
In a joint effort to address the challenges faced by MSMEs in Morocco’s banking sector, the EBRD has granted a €50 million loan to Bank of Africa. This credit line will enable BOA to provide much-needed funding to MSMEs. By focusing on value chains located in Tangier and Kenitra, as well as underserved regions, BOA aims to facilitate improved access to finance for small businesses.
Enhancing economic resilience and trade finance
The signing of the credit line involved key representatives from EBRD, BOA, and BOA’s Executive General Manager responsible for CIB and Morocco. Mark Bowman, EBRD Vice President, Policy and Partnerships, expressed his satisfaction with the partnership, emphasizing its significance in the current challenging global economic environment, which has been further exacerbated by the war in Ukraine. The collaboration aims to mitigate the impact on MSME lending and foster economic resilience in Morocco.
“We are pleased to sign this facility with Bank of Africa,” explained Bowman. “It will support one of the EBRD’s key partners in Morocco in this challenging global economic environment, which is aggravated by the war on Ukraine, and help mitigate its impact on MSME lending. We also hope that the recently approved TFP limit increase will help address trade finance gaps and foster economic resilience in Morocco.”
BOA’s Director and General Manager, Brahim Benjelloun-Touimi said, “The signature of this €50 million facility is one of the milestones of an ever-closer partnership that we have maintained for a decade with the EBRD. We continue with our strategy of more inclusive finance, particularly regarding those who represent the bulk of the Moroccan productive fabric, namely SMEs, and remain resolute in our quest for a positive impact on our customers, our stakeholders and more generally on the environment of our activities.”
Expansion of Trade Facilitation Programme and green trade initiatives
In addition to the credit line, the EBRD has recently increased the trade line limit granted to Bank of Africa under its Trade Facilitation Programme (TFP) from USD 150 million to US$175 million. This expanded limit will enable BOA to issue guarantees to confirming banks and provide cash financing for pre-export, post-import financing, and local distribution. It will also support BOA’s efforts in importing a diverse range of goods into Morocco, benefiting its private MSME and corporate clients.
With the increased trade line limit, BOA, as a key contributor to the EBRD’s Green Trade Facilitation Programme, can further contribute to Morocco’s green economy, focusing on sourcing transactions for scrap metal and forestry from sustainable sources. As part of the Trade Facilitation Programme framework, BOA will receive comprehensive technical assistance, including advisory services, access to the EBRD Trade Finance e-Learning Programme, and interactive workshops on various trade finance topics.
Bank of Africa – Third largest Moroccan bank
Bank of Africa, the third-largest bank in Morocco, plays a crucial role in supporting SMEs and promoting foreign trade. The bank’s presence spans 32 countries, including sub-Saharan Africa, Europe, Asia, and North America. As a partner of the EBRD, Bank of Africa has facilitated over 500 trade finance transactions, amounting to more than EUR 1 billion since joining the TFP. In 2022 alone, the TFP supported 67 transactions, reaching a total volume exceeding EUR 184 million.
Driving economic development in Morocco
Morocco, a founding member of the EBRD and a beneficiary of Bank resources since 2012, has experienced substantial investment from the EBRD. Through 93 projects, the EBRD has invested €4.2 billion in the country, demonstrating its commitment to fostering economic development and supporting the private sector in Morocco.
In other trade news, Afreximbank recently introduced an insurance subsidy package to help boost intra-African trade and Ecobank’s new single market trade hub aims to trade within AfCFTA.