The African Development Bank, AfDB and Bank of Africa SA have signed a €50 million risk-sharing agreement. The deal aims to boost private-sector financing and support African trade.
The signing took place during the 2024 Africa Investment Forum (AIF) Market Days in Rabat, Morocco. This partnership will help Bank of Africa SA assist local African banks in international operations.
The agreement will allow African banks to increase financing and strengthen trade connections with foreign partners. It aims to generate up to €200 million in additional trade.
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AfDB Supporting African SMEs in Key Sectors
This initiative targets small and medium-sized enterprises (SMEs) in agriculture, pharmaceuticals, automotive, transport, and telecommunications. It will impact over 20 African countries, including transition economies.
Ahmed Rashad Attout, Director of the AfDB’s Financial Sector Development Department, emphasized the importance of this collaboration.
He said, “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.”
Khalid Nasr, Executive General Manager at Bank of Africa SA, highlighted the benefits for SMEs. “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,” he said.
The deal promises to unlock opportunities for SMEs, ensuring sustainable economic growth across the continent.