The African Development Bank (AfDB) and Banque Centrale Populaire (BCP) have entered into a $70 million risk-sharing agreement (RSA) aimed at invigorating private sector financing and enhancing trade across Africa. This agreement allocates an overall risk limit to local African banks, bolstering their ability to support economic activities on the continent. The collaboration between AfDB and BCP is set to enhance financial inclusion for economic operators, with a special focus on small and medium-sized enterprises (SMEs). The agreement underscores BCP group’s ongoing commitment to financing trade transactions in Africa. The new RSA is expected to significantly bolster BCP’s capacity to finance trade across Africa, providing crucial support for commercial transactions of African companies.

Source: The North Africa Journal May 22, 2024 13:50 UTC