AfDB Approves €70 Million Trade Finance Facility for Bank of Africa Morocco

The initiative is expected to catalyze €300 million in trade over 3.5 years, contributing to production diversification, increased competitiveness, higher tax revenues, and job creation across the continent.

The African Development Bank (AfDB) has approved a €70 million trade finance facility for Bank of Africa Morocco (BOA), aimed at promoting access to trade finance across the continent, particularly for small and medium-sized enterprises (SMEs) in transitioning economies.

The facility includes a €50 million Risk Participation Agreement (RPA) and a €20 million Trade Finance Line of Credit (TFLOC). “This partnership will enhance financial inclusion for SMEs engaged in foreign trade and help them expand their operations,” said Achraf Hassan Tarsim, head of AfDB’s Morocco office.

The RPA will enable BOA to offer greater support to local African banks involved in international operations, while the TFLOC will focus on providing Moroccan SMEs, particularly in the health, agriculture, pharmaceutical, automotive, and transport sectors, with access to much-needed finance.

The initiative is expected to catalyze €300 million in trade over 3.5 years, contributing to production diversification, increased competitiveness, higher tax revenues, and job creation across the continent.