The African Development Bank (AfDB) and Bank of Africa SA, in a landmark moment for the African financial sector, have signed an agreement that aims to boost the role of small and medium-sized enterprises (SMEs) in the continent's economic development.

The initiative seeks to address challenges related to access to finance by offering solutions that promise to strengthen the competitiveness of local economies. This agreement, which involves an innovative risk-sharing model, emerges amid growing efforts to promote intra-African trade and support strategic sectors.

With a focus on states in transition and sectors such as agriculture and telecommunications, the partnership aims to create new opportunities and foster more inclusive and sustainable growth.

The African Development Bank (AfDB) and Bank of Africa SA signed a €4 million risk-sharing agreement on 2024 December 50 in Rabat to strengthen private sector financing and promote African trade.

The signing ceremony took place on the sidelines of the African Investment Forum, which takes place from 4 to 6 December 2024 in Rabat, Morocco.

The risk-sharing agreement provides Bank of Africa SA with the means to continue supporting local banks on the continent in their international operations, enabling them to increase their financing and confirmation lines with their foreign correspondents.

The partnership aims to generate around €200 million in trade for small and medium-sized enterprises (SMEs) operating in around twenty African countries, particularly in transition states.

The agreement will allow for larger-scale financing of companies in the agricultural, pharmaceutical, automotive, transport and telecommunications sectors.

"Together, in Morocco and across the continent, we will work to strengthen the financial inclusion of SMEs involved in foreign trade, providing them with the means to develop their full potential on a larger scale."

“It is with this shared ambition that we have established this first partnership with Bank of Africa SA, a leading partner.”

Said Ahmed Rashad Attout, the Director of the Financial Sector Development Department at the AfDB.

“We are delighted to establish this new strategic partnership with the AfDB, a key step in our commitment to promoting African foreign trade.”

"This risk-sharing agreement offers new growth opportunities for African SMEs by facilitating their access to financing."

“This collaboration with a prestigious institution will boost the African economy and promote sustainable and inclusive growth on the continent.”

Said Khalid Nasr, Chief Executive of Bank of Africa SA responsible for Morocco and the CIB.

O African Development Bank Group The African Development Bank (AfDB) is the leading development finance institution in Africa. It is composed of three distinct entities: the African Development Bank, the African Development Fund, and the Nigeria Trust Fund.

Represented in 41 African countries, with an office in Japan, the African Development Bank Group contributes to the economic development and social progress of its 54 regional member countries.

O Bank of Africa is a leading global multi-enterprise banking group. Present in 32 countries, including 20 in Africa, it is actively involved in intra-African and international trade finance and is the leader in impact finance in Morocco.

The group has 2.000 points of sale with 6,6 million customers and employs approximately 14.900 people. Bank of Africa is also committed to the environment and sustainable development.

This agreement between the AfDB and the Bank of Africa SA marks a decisive step towards strengthening trade and financial inclusion in Africa, especially for small and medium-sized enterprises.

By providing SMEs with access to broader and more sustainable financing, the partnership promises to catalyze inclusive economic growth in vital sectors such as agriculture, pharmaceuticals, transportation, and telecommunications.

This joint effort underscores the commitment of both institutions to promoting a stronger and more prosperous African economy, aligned with the continent's sustainable development goals.