The African Development Bank (AfDB) and Banque Centrale Populaire (BCP) signed on Tuesday, May 21, a risk-sharing agreement (RSA) worth US$70 million. While this amount represents a global risk limit for local African banks, it is critical to support private sector financing and boost trade on the African continent, according to a BCP press release. The Bank's Country Manager for Morocco, Achraf Tarsim, explains that «this partnership with BCP aims to diversify Morocco's production capacity, strengthen its competitiveness, generate additional tax revenue, and create new employment opportunities». The agreement between the two institutions also aims to improve the financial inclusion of businesses, particularly small and medium-sized enterprises (SMEs). This is expected to improve their international trade skills and generate an estimated 200 million euros in trade volume. BCP is also keen to consolidate its relations with local African banks, which are increasingly affected by the reduction in financing and confirmation lines from their foreign correspondents. Thus, «this new agreement with the African Development Bank represents an ideal model for South-South collaboration, offering a comprehensive solution tailored to the development needs of pan-African trade and Africa's trade with the rest of the world», concludes Kamal Mokdad, Managing Director of BCP and the Group's international business.
