(MENAFN- Morocco World News) Rabat – The African Development Bank (AfDB) just approved on July 14, a USD 200 million loan for Morocco to finance the first phase of the Support Program for the Acceleration of Industrialization in Morocco (PAAIM I). The AfDB also validated a USD 50 million risk-sharing agreement for the Central Popular Bank (BCP).
The PAAIM I, which aims to promote the industrial acceleration of Morocco and consolidate the foundations for sustainable and shared growth, is aligned with two of the AfDB's five strategic priorities, namely "Industrializing Africa" and "Improving the quality of life of populations in Africa."
This program is expected to increase the share of industry in Morocco's GDP by 14 to 23 points and create half a million jobs by 2020.
The AfDB's Board of Directors has also approved a risk-sharing agreement (APA) amounting to USD 50 million for the benefit of the Central Popular Bank (BCP). In a statement published by the AFD, the bank stated that the program will be able to "hedge a portfolio of transactions of up to USD 100 million, supporting the equivalent of USD 700 million (cumulative value) of intra-African business operations over a three-year period."
According to the AfDB, the APA will meet the growing demand of African markets for trade finance in vital economic sectors such as agri-food, health, services, and industry. In addition, it will promote regional integration and financial sector development and help generate additional tax revenues for several African States. This agreement will support in particular Moroccan exporters as well as banks and SMEs on the continent.
To date, 32 transactions amounting to USD 2.3 billion in commitments are registered under the partnership between Morocco and the African Development Bank Group. The projects concern the transport, energy, water, and sanitation and agricultural sectors.
This partnership between the AfDP and the BCP takes place in a context where the majority of African banks have a small capitalization, limiting their ability to obtain lines from international banks.
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