- Renewed support under the EU Trade and Competitiveness Programme, developed by the EIB with EU backing
- A €50 million finance contract with Banque Centrale Populaire (BCP) to increase support for Moroccan small and medium-sized businesses in export value chains
- Launch of an interactive, informative guide to decarbonisation for Moroccan small businesses, in collaboration with Moroccan employers’ confederation
The European Investment Bank (EIB) announces the signing of a €50 million finance contract with Banque Centrale Populaire under the EU Trade and Competitiveness Programme, developed by the EIB with financial support from the European Union. This funding will provide additional leverage to facilitate access to finance for small and medium-sized exporters, thus supporting their integration into local and international value chains.
This new finance contract will enable BCP to provide new loans on favourable terms to small businesses in the key export sectors of automotive, textiles and agri-food (agro-industry and agricultural sectors). First and foremost, eligible projects concern lean and green investments featuring improved efficiency, value added productivity or quality, such as decarbonisation investments (waste reduction and recycling, energy efficiency and renewable energy, upgrading of processes). They can also concern working capital financing, provided that there is a positive impact on exporting potential in export value chains, as well as financing of digitalisation and R&D to open up new markets.
This contract complements a first agreement finalised between the EIB and BCP in October 2022, upon the launch of the EU Trade and Competitiveness Programme, marked by the signing of an initial €8 million guarantee agreement with BCP designed to facilitate BCP's financing of an investment volume of around €50 million for Moroccan small and medium-sized exporters through enhanced risk-taking.
These two components of the Trade and Competitiveness Programme, namely intermediated financing and a risk-sharing mechanism, are complemented by technical assistance to companies, partner financial institutions and stakeholders, such as professional federations in the target sectors. The EIB provides technical and financial expertise in support of export sectors, and in risk assessment, decarbonisation and competitiveness with a view to strengthening value chains with the European Union.
These objectives are aligned with the Moroccan government’s policy on supporting small businesses, with an emphasis on integrating them within global value chains in order to create jobs and strengthen technical, environmental, social and governance standards, while increasing the local contribution to the value added being exported.
At the signing of the agreement, welcoming the Bank's cooperation with BCP, one of Morocco's leading banks with a strong presence in the small business and mid-cap segment, including in rural areas, EIB Vice-President Ricardo Mourinho Félix responsible for financing operations in Morocco said: “I am delighted with our excellent collaboration with Banque Centrale Populaire, with which we launched the Trade and Competitiveness Programme in Morocco. This new agreement will further facilitate access to finance for Moroccan small businesses, while strengthening their capacity to successfully transition to carbon neutrality. Support for the development and competitiveness of businesses is at the heart of our action in Morocco and we have dedicated 40% of our investments to these facets over the past five years. By providing our financial and technical expertise, we will continue to support financial institutions such as BCP in strengthening small businesses, which represent a key segment of the Moroccan economy in terms of innovation and job creation.”
EU Ambassador to Morocco Patricia Llombart Cussac said: “This alliance between financial institutions, such as between the EIB and the BCP, provides tangible evidence of our commitment to Morocco’s trade and competitiveness. It forms part of the EU-Morocco Green Partnership that we launched together last October. It commits us to work hand in hand in order to deal with the climate emergency and improve the competitiveness of Moroccan businesses by providing support to address the multiple challenges they face. Among these challenges, decarbonisation is now both a necessity and an opportunity for the competitiveness of Moroccan businesses.”
Kamal Mokdad, CEO of BCP and Head of International Global Banking, also welcomed the continued collaboration with the EIB and the signing of this second agreement under the EU Trade and Competitiveness Programme, developed by the EIB: “This agreement is fully in line with BCP’s strategy to support our small business clientele and the mechanisms deployed to help make them more competitive. This EIB funding will enable BCP to strengthen its overall integrated offer to the small businesses market, especially to export chains that can benefit from tailor-made solutions on favourable terms and from technical assistance covering core topics such as value chain development, decarbonisation, the use of resources in the economy, and digitalisation.”
Launch of a guide to decarbonisation
Furthermore, in a context where Moroccan exporters will have to produce lower-carbon goods and services while reducing their emissions, the EIB has joined forces with the General Confederation of Moroccan Enterprises (CGEM) to announce the upcoming launch of a guide to decarbonisation. Created jointly thanks to the technical assistance of the EU Trade and Competitiveness Programme and CGEM's Green Economy Committee, this guide is designed as an interactive online teaching tool for Moroccan small businesses to better support and speed up their transition to carbon neutrality.
European Investment Bank
The EIB has been a key partner for Morocco for more than 40 years. It finances the development and implementation of important projects in key sectors of the Moroccan economy such as business support, agriculture, water and sanitation, education, health, transport and renewable energy.
EIB Global is the EIB Group’s specialised arm devoted to increasing the impact of international partnerships and development finance. It is designed to foster a stronger, focused partnership within Team Europe, alongside fellow development finance institutions and civil society. EIB Global brings the Group closer to local people, businesses and institutions through our offices around the world.