The African Development Bank Group’s Board of Directors has approved a €70 million trade finance facility for Bank of Africa Morocco (BOA).
Ahmed Attout, Director of the Bank’s Financial Sector Development Department, highlighted the collaboration to improve trade finance access, particularly for small and medium-sized enterprises (SMEs) in transitional states.
The facility includes a €50 million Risk Participation Agreement (RPA) and a €20 million Trade Finance Line of Credit (TFLOC).
Achraf Hassan Tarsim, head of the African Development Bank’s Morocco office, emphasized that this partnership aims to enhance financial inclusion for SMEs involved in foreign trade across Africa.
The RPA will help BOA support local African banks with international transactions amid declining financing options from foreign counterparts.
The TFLOC will improve access to funding for Moroccan SMEs in key sectors such as health, agriculture, pharmaceuticals, automotive, and transport.
This facility is expected to generate nearly €300 million in trade over 3.5 years and contribute to production diversification, competitiveness, tax revenue growth, and job creation.
