Banque Central Popularize (BCP), Morocco’s second-largest banking group, signed a partnership agreement with the European Investment Bank (EIB) today in Rabat, aiming to enhance the competitiveness of small and medium-sized businesses in Morocco.
The agreement is part of an EU-sponsored program dedicated to improving the market competitiveness of companies that export commodities to the European Union.
Through the program, the EIB would step in to de-risk loans that BCP issues for SMEs – share liability in case of loan default. Therefore, allowing the bank to issue loans to companies that are typically considered too risky. De-risking loans would also result in widening BCP’s customer base of SMEs.
The financial support would primarily target exporting SMEs in the automotive, textiles, agribusiness, and agriculture sectors, according to a press release. The agreement would facilitate SMEs’ access to sustainable financing to decarbonize, expand operations, and raise capital.
In addition, SMEs benefiting from the program through BCP would have access to free-technical assistance to build capacity in export-related issues, the statement specifies.
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Speaking on the backdrop of the agreement’s signing ceremony, EIB Vice President Ricardo Mourinho Felix underlined the importance of EIB’s support for Moroccan SMEs to ultimately boost their exports to the European Union while maintaining a low carbon footprint.
“We are moving towards lower-carbon economic models and it is our role, as the EU Bank and Climate Bank, to support our partners in the field,” Ricardo said, adding that “In Morocco, SMEs play a key role. With this new program, we are committed to facilitating their access to advantageous financing and quality support in order to strengthen their capacity building,”
The EIB official further added that the agreement would allow the European bank “to concretely support the competitiveness and innovation of Moroccan SMEs in order to better seize the opportunities of regional value chains to create sustainable jobs in the main export sectors of the Kingdom of Morocco.”
Ambassador of the European Union to Morocco Patricia Pilar Llombart Cussac said, “The program we are launching today is part of the continuity of our partnership with Morocco which covers several facets, including support for sustainable development, competitiveness and green transition for small and medium-sized enterprises.”
Noting the importance of SMEs as the backbone of economic development, the ambassador explained that “SMEs are a pillar of the economy, and it is in recognition of their importance and potential that the European Union devotes a significant part of its partnership with Morocco to supporting the development of the private sector and its competitiveness.”
The EU ambassador also expressed her confidence that the “program will contribute to Morocco’s efforts towards green transition and value chain resilience.”
Commenting on the signing of the agreement, a BCP member spoke on behalf of Group President Mohamed Karim Mounir declaring that “BCP is delighted to be the first player within Morocco’s banking sector and a long-standing partner of the EIB to join the “Trade & Competitiveness” program and to allow its SME-SMI clients to benefit from its advantages.”
“By relying on this program, BCP will propose an integrated global offer for the SME market, especially for the exporting sectors, in order to support them with tailor-made solutions at advantageous conditions,” the speaker added.
Co-financed by the European Union, the program aligns with Morocco’s 2021-2023 Industrial Recovery Plan, aiming to make Morocco the most competitive, decarbonized, and innovative industrial hub for European companies.
SOURCE: Morocco news
