EBRD Extends €50 Million Credit Line to Bank of Africa to Boost Moroccan SMEs

Mark Bowman, EBRD Vice President, Policy and Partnerships at the signing of a €50 million credit line to Bank of Africa (BOA) in Morocco

(IN BRIEF) The European Bank for Reconstruction and Development (EBRD) has granted a €50 million credit line to Bank of Africa – BMCE Group (BOA) to support micro, small, and medium-sized enterprises (MSMEs) in Morocco. The loan aims to enhance the resilience and competitiveness of the country’s private sector. BOA will utilize the funds to provide much-needed financing to underserved MSMEs in the banking sector. The credit line will also assist companies operating in value chains located in Tangier, Kenitra, and other underserved regions. The agreement was signed by key representatives from EBRD and BOA. Additionally, the EBRD has expanded the total trade line limit for BOA under its Trade Facilitation Programme (TFP) to US$175 million, further supporting the bank in guaranteeing transactions and facilitating trade in Morocco. BOA will also receive technical assistance to enhance its contribution to Morocco’s green economy. The bank is a major player in financing SMEs in the country and has been a valuable partner to the EBRD. Since joining the TFP, BOA has supported over 500 trade finance transactions, contributing significantly to the country’s import activity.

(PRESS RELEASE) LONDON, 28-Jun-2023 — /EuropaWire/ — The European Bank for Reconstruction and Development (EBRD), a multilateral developmental investment bank, announces that it has extended a €50 million credit line to Bank of Africa – BMCE Group (BOA) for the purpose of on-lending to micro, small, and medium-sized enterprises (MSMEs) in Morocco. This initiative aims to enhance the resilience and competitiveness of Morocco’s private sector.

Under the EBRD Financial Intermediaries Framework (FIF), the €50 million loan will enable BOA to offer funding to MSMEs, a segment that remains underserved in Morocco’s banking sector.

A portion of the credit line will be allocated to finance companies operating in value chains situated in Tangier, Kenitra, and other underserved regions. This allocation will facilitate easier access to finance for small businesses.

The credit line agreement was signed by Mark Bowman, EBRD Vice President for Policy and Partnerships; Brahim Benjelloun-Touimi, Director and General Manager of Bank of Africa; and Khalid Nasr, BOA’s Executive General Manager responsible for CIB and Morocco.

“We are pleased to sign this facility with Bank of Africa,” explained Mark 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.”

Recently, the EBRD increased the total trade line limit granted to Bank of Africa under its Trade Facilitation Programme (TFP) from US$150 million to US$175 million. This enhancement will enable BOA to issue guarantees in favor of confirming banks, provide cash financing for pre-export and post-import operations, and support local distribution. The increased limit also allows BOA and its private MSME and corporate clients to continue importing a diverse range of goods into Morocco.

With this expanded limit, BOA can further contribute to Morocco’s green economy. The bank is a key participant in the EBRD’s Green Trade Facilitation Programme, supporting transactions for sustainable sources of scrap metal and forestry. To maximize the program’s impact, BOA will receive comprehensive technical assistance within the TFP framework, including advisory services, access to the EBRD Trade Finance e-Learning Programme, and interactive workshops covering various trade finance topics.

BOA is the third-largest bank in Morocco, listed on the Casablanca Stock Exchange, and operating in 32 countries across sub-Saharan Africa, Europe, Asia, and North America. It is a major partner of the EBRD in financing Moroccan SMEs and the leading partner in supporting foreign trade. Since joining the TFP, BOA has supported over 500 trade finance transactions, amounting to a cumulative volume exceeding €1 billion. In 2022 alone, the TFP facilitated 67 transactions with a total volume surpassing €184 million.

Morocco, a founding member of the EBRD, became a beneficiary of the Bank’s resources in 2012. To date, the EBRD has invested €4.2 billion in the country through 93 projects.

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SOURCE: EBRD