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China Development Bank joins forces with BMCE Bank of Africa

The agreement between BMCEBOA and CBD will also be able to support sustainable development projects.


Devdiscourse News Desk
Updated: 25-03-2018 21:28 IST
China Development Bank joins forces with BMCE Bank of Africa

This memorandum is part of the One Belt, One Road initiative. (Image Credit: Pixabay)

The banking groups BMCE Bank of Africa and China Development Bank have signed a memorandum of understanding aimed at strengthening economic cooperation and investment between Moroccan and Chinese operators. This rapprochement between its two institutions also aims to consolidate Morocco's position as a continental gateway for FDI.

This memorandum is part of the One Belt, One Road initiative. Morocco and the People's Republic of China had signed an agreement to this effect in November 2017. The rapprochement between the two groups coincides with a context of the development of infrastructure programs at the continental level, including transport, automobile, technology park, investment, and trade.

The agreement between BMCEBOA and CBD will also be able to support sustainable development projects "related to social issues and the environment", likely to enhance the relevance of infrastructure projects. For the Moroccan bank, this merger coincides with the forthcoming opening of a branch in Shanghai. This implementation would target according to the Pan-African group has strengthened opportunities "Business & Trade" between Morocco and China.

The opening of a Chinese branch "offers a solid base of cooperation in the areas of interest of the private sector of the two countries, with a view to consolidating Morocco's position as a privileged gateway to Africa. and to infuse, through this partnership, a new dynamic in the relations between Morocco and China," says BMCE Bank of Africa management in a statement.

China Development Bank is a reminder of a public institution, which mainly finances the construction of infrastructure, basic industry, energy facilities and transport. CBD claims USD 253 million (1.6 billion yuan) in loans to more than 4,000 projects in the areas of infrastructure, communications, transportation and basic industries.

BMCE Bank of Africa, for its part, recorded a net profit of 119 million dollars (1.1 billion dirhams) in the first half of 2017. A period where the contribution of the international activities of the group has increased by 18 percent to reach 41 percent of net income group share, compared to 36 percent in June 2016. The contribution from sub-Saharan Africa thus represents 44 percent of the group's income.

COUNTRY : ChinaMorocco