Bank of Africa, which is based in Morocco and serves 32 countries, recently agreed to borrow EUR 25 million (USD 27 million) from the Luxembourg-domiciled Sanad Fund for MSME to on-lend to small and medium-sized enterprises (SMEs) in Morocco. Sanad is supporting the loan with funding from its Technical Assistance Facility to help Bank of Africa improve its services for SMEs. In particular, the bank is looking to expand its geographic range, boost its customer service, offer new loan products and provide a better range of advisory services, all in relation to its SME customers.
Sanad’s goal is to boost the prospects of micro-, small and medium-sized enterprises (MSMEs) by partnering with retail financial services providers and adjacent companies. Sanad Board Chair Dr Daniela Beckmann commented, “Small and medium business owners need uninterrupted access to financial resources to grow, support jobs and stimulate the local economy. Bank of Africa has strong experience in reaching out to our target group of entrepreneurs, and we are looking forward to generating on-the-ground impact together.”
Bank of Africa was established in 1988 and as of 2022 had total assets of EUR 9.4 billion (USD 10.2 billion), customer deposits of EUR 7 billion (USD 7.5 billion), a loan portfolio of EUR 4.5 billion (USD 4.8 billion) and 6,000 employees operating 549 branches. The bank is a member of the Bank of Africa BMCE (Banque Marocaine du Commerce Extérieur) Group, whose other members include BMCE Capital, BMCE Euroservices and La Congolaise de Banque (LCB Bank). The group serves a total of 6.6 million clients via approximately 2,000 branches. As of December 2021, it reported total assets of MAD 345 billion (USD 33.7 billion), having disbursed customer loans totaling MAD 197 billion (USD 19 billion) during the year and earning net banking income of MAD 14.6 billion (USD 1.4 billion).
Sanad, which means “support” in Arabic, was founded in 2011 by the German development bank KfW (Kreditanstalt für Wiederaufbau). The fund makes equity and debt investments in organizations that support MSMEs and households, such as microfinance institutions, banks, leasing companies and firms that facilitate access to markets. Sanad invests across the Middle East and Africa. Its investors include US-based Calvert Impact Capital; the EU; Germany’s GLS Bank; and development finance institutions of the Austrian, Dutch, German and Swiss governments. As of 2022, Sanad had an outstanding debt portfolio of USD 349 million. It is advised by Germany’s Finance in Motion, which manages assets valued at EUR 2.9 billion (USD 3 billion) as of 2021.
By Renata Samadova, Research Associate
Sources and Additional Resources
Sanad press release
https://sanad.lu/latest-updates/sanad-partners-with-bank-of-africa-to-strengthen-smes-in-morocco-through-eur-25-million-loan
Bank of Africa homepage
https://bank-of-africa.net
BMCE Bank of Africa Group homepage
https://www.ir-bankofafrica.ma
BMCE Bank of Africa Group annual report 2021
https://www.ir-bankofafrica.ma/sites/default/files/2022-10/Rapport%20Annuel%20Int%C3%A9gr%C3%A9%202021%20ang_1.pdf
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