|Approval Date||16 Jul 2021|
|Signature Date||11 Apr 2022|
|Sovereign / Non-Sovereign||Non Sovereign|
|DAC Sector Code||24030|
The project aims to provide an EUR 10 million Trade Finance Line of Credit (TFLOC) to Banque pour le Commerce et l’Industrie (BCI). Established in 1999, BCI is one of the leading trade finance bank in Mauritania. BCI’s selection as beneficiary of the proposed facility was based on its local roots and support to SMEs in the country's key economic sectors, as reflected in its portfolio and trade finance track record. BCI has subsidiaries in Mali, Guinea and Senegal and aims to consolidate its role as an active trade finance banking group in the sub-region. The Bank's intervention through the facility will strengthen access to finance for the private sector. The facility will help meet the trade financing needs of SMEs in key sectors of the country's economy, under the challenging situation caused by the COVID-19 pandemic. It will support the procurement of machinery, inputs, equipment, consumer goods, foodstuffs and materials for fish and food processing, manufacturing, construction, agriculture, health and handicraft sectors.
The loan will help BCI expand its trade finance activities in Mauritania. The proposed facility is expected to deliver good development outcomes, mainly in: (i) private sector development through better access to trade finance resources for local SMEs and businesses; (ii) Regional integration and economic resilience thanks to the support of a local bank that operates in 3 countries of the sub-region and thus participate in strengthening economic resilience and supporting intra-African trade; and (iii) Gender and social effects through support for the population and the employment of women in the target sectors of activity of the facility. The facility will also contribute to inclusive growth given its support to SMEs operating in key sectors of the country's economy and therefore its contribution to economic diversification.
The facility will enable BCI to access much needed resources at an affordable cost, diversify its funding base and finance its activities more effectively. It will provide stable foreign exchange essential for financing SMEs. The facility will also give international banks the incentive to provide more confirmation lines to BCI. Furthermore, the facility is expected to strengthen BCI's financial resilience, credibility and position on the market as a local bank and will allow it to continue expanding its network of partners and consolidating its confirmation and refinancing lines through entry into relationship with new international confirming banks.
BANQUE POUR LE COMMERCE ET L'INDUSTRIE (BCI)
African Development Bank
|Last Update||24 Mar 2023|