Finance
Programme name: Risk Participation Agreement
Total amount: €100 million
Background
This agreement, the second of its kind with Attijariwafa bank, comes amid toughening regulatory capital and compliance standards on the continent. This has led international banks to reduce their commitment levels and the number of their correspondents in Africa, partly due to perceived high African risk.
This agreement will allow Attijariwafa bank to support local banks committed to local SMEs grappling with financing and confirmation lines from their correspondent banks.
The risk sharing scheme is intended to meet Africa's growing demand for trade finance in such vital economic sectors such as agriculture and agri-food, renewable energy, manufacturing, health, telecommunication, transport and services. It will also contribute to a diversification of production, boosting job creation and additional tax revenues for several African states, thus strengthening their economic resilience.
Specific objectives
This agreement will:
Strengthen the capacities of African banks and their SME clients by consolidating relationships of trust between actors in the African banking system to accelerate the development of regional and international foreign trade.
Help small and medium-sized enterprises operating in several African countries gain access to trade finance instruments.
Beneficiaries
Direct beneficiaries: African issuing banks, whose trade finance activity is constrained by insufficient trade confirmation lines from international confirming banks.
Indirect beneficiaries: Local SMEs which rely on issuing banks located in Africa to meet their trade finance commitments.
Expected results
The Risk Participation Agreement will:
Contribute to a diversification of production, boosting job creation and additional tax revenues for several African States, thus strengthening their economic resilience.
Ensure that African commercial banks and SMEs have stable access to financing for their foreign trade operations, an essential driver of economic growth and regional integration.
Support the realization of the African Continental Free Trade Area (AfCFTA), which will unlock the continent's full potential for growth and create new job opportunities.
About Attijariwafa bank Group
Based in Morocco, Attijariwafa bank operates in 26 countries around the world. The group is a key player on the African continent, with a presence in 15 countries.
In addition to banking, Attijariwafa bank operates subsidiaries specializing in a range of financial businesses such as insurance, real estate lending, consumer credit, leasing, asset management, stock market intermediation, private banking, consulting, long-term rental, factoring, etc.
The group employs over 20,000 staff and manages a portfolio of nearly 11 million customers through 5,900 branches.
Contact:
Media Contact:
Communication and External Relations Department | African Development Bank | [email protected]
Technical Contact
Mohamed Aloui, Principal Investment Officer I African Development Bank
