AIF2024: AfDB and Bank of Africa SA sign EUR 50m risk-sharing agreement to support development of SMEs and boost African trade
The African Development Bank and Bank of Africa SA have signed a risk-sharing agreement of EUR 50 million to strengthen private-sector financing and promote African trade. The signing ceremony took place on 4 December 2024, during the 2024 Africa Investment Forum (AIF) Market Days in Rabat, Morocco.
The risk-sharing agreement will enable Bank of Africa SA to provide more support to local African banks in their international operations, by allowing them to increase financing and confirmation lines with foreign counterparts.
The partnership aims to generate up to EUR 200 million in additional commercial trade by small and medium-sized enterprises (SMEs) operating in the agricultural, pharmaceutical, automotive, transport and telecommunications sectors, in more than 20 African countries including transition countries.
“We will be working together in Morocco and on the whole of the continent to strengthen the financial inclusion of SMEs involved in foreign trade, by offering them the means to achieve their full potential on a larger scale. It is with this shared ambition that we are embarking on our first partnership with Bank of Africa SA,” said Ahmed Rashad Attout, director of the African Development Bank’s Financial Sector Development Department.
“We are delighted to enter into this new strategic partnership with the African Development Bank, a key step in our commitment to promoting foreign trade in Africa. This risk-sharing agreement will facilitate access to finance for African SMEs, opening up new growth prospects for them. This collaboration with a prestigious institution will help boost the African economy and support sustainable, inclusive growth on the continent,” stated Khalid Nasr, Executive General Manager responsible for Morocco and Corporate & Investment Banking at Bank of Africa SA.
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