AfDB, Attijariwafa sign $108m deal to boost trade across Africa
TLDR
- AfDB and Attijariwafa bank Europe have signed a €100 million risk-sharing agreement to boost businesses and trade activities across Africa.
- The collaboration aims to catalyze nearly €500 million in trade, benefiting companies in over twenty African countries.
- Attijariwafa will use the agreement to scale up financing for sectors such as health, agriculture, renewable energy, and support sustainable development projects and women-led businesses.
The African Development Bank (AfDB) and Attijariwafa bank Europe, the European subsidiary of the Attijariwafa bank group, have entered into a €100 million ($108 million) risk-sharing agreement. This collaboration aims to fortify businesses and trade activities across Africa.
Anticipated to catalyze nearly €500 million in trade, the agreement will benefit companies operating in over twenty African countries. Its impact is expected to diversify production capacity, enhance competitiveness, increase tax revenues, and generate new employment opportunities.
Attijariwafa is poised to leverage the agreement to scale up financing for businesses operating in various sectors, including health, agriculture, agri-food, renewable energy, telecommunications, and services. Special emphasis will be placed on supporting sustainable development projects and businesses led by women.
Key Takeaways
African businesses have encountered challenges in accessing commercial financing, primarily attributed to the tightening of capital and regulatory compliance standards across the continent. This has led to a reduction in commitment and activities by several international banks in Africa. To address this gap, the risk-sharing mechanism is designed to ensure stable access to financing for African companies engaged in foreign trade operations. This initiative holds significant importance as it becomes a crucial vector for expediting the implementation of the African Continental Free Trade Area (AfCFTA). By providing a reliable avenue for financing, the risk-sharing agreement aims to support African businesses, fostering their participation in international trade and contributing to the overall success of the AfCFTA in promoting intra-African commerce and economic integration.
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