The African Development Bank and Attijariwafa bank Europe, European subsidiary of the Attijariwafa bank group, have signed a €100 million risk-sharing agreement to strengthen businesses and trade across Africa.
The pact is expected to catalyse nearly €500 million worth of trade for companies operating in more than twenty African countries. It will help to diversify production capacity in beneficiary countries and bolster competitiveness, generate higher tax revenues and create new jobs.
The agreement will position Attijariwafa bank to scale up financing to firms in the health, agriculture and agri-food, renewable energy, telecommunications and services sectors. Businesses focused on sustainable development projects and those run by women, will also benefit.
The risk-sharing mechanism will guarantee African companies stable access to financing for their foreign trade operations, which is an important vector for accelerating the implementation of the African Continental Free Trade Area.
African businesses have faced limited access to commercial financing due to the tightening of capital and compliance regulatory standards across the continent. As a result, several international banks have reduced their commitment and activities in Africa.
« By joining forces with Attijariwafa bank, we are not just sharing risks. We are creating new opportunities for all those who undertake and project themselves in Africa », said Mohamed El Azizi, African Development Bank Director General for North Africa.
« We want to break the continent’s financial isolation by supporting African champions who can strengthen the financial inclusion of businesses and help them to expand on the continent, » said Achraf Tarsim, African Development Bank Country Manager for Morocco.
Younes Belabed, Managing Director of Attijariwafa bank Europe, said: « For more than a decade, the Attijariwafa bank Group has been committed to the development of the African continent in a spirit of inclusive and mutually supportive growth. With the partnership set up between the African Development Bank and Attijariwafa bank Europe, our Group is consolidating its position as a major player in strengthening the African economic fabric and a major contributor to the revitalisation and development of North-South exchanges. »
