Abstract

The CIBP SPARK session, led by El Amrani Joutey Mamoun from Banque Centrale Populaire (BCP) Morocco, focused on 'Trade Finance in Africa' and highlighted the potential for cooperative banks to engage in the African market. BCP's extensive presence in Africa, with 17 banks across the continent, positions it as a key player in trade finance, offering significant opportunities for CIBP members. The session emphasized the importance of collaboration among CIBP members to leverage these opportunities and addressed challenges such as low capitalization and political risks in Central and West Africa. BCP's strategies, including a Risk Participation Agreement with the African Development Bank, were discussed as ways to manage international trade risk and support trade finance growth.

Summary

The CIBP SPARK session focused on 'Trade Finance in Africa,' featuring guest speaker Mamoun El Amrani Joutey, Director of Correspondent Banking at Banque Centrale Populaire (BCP) Morocco. Participants were informed that the SPARK sessions are recorded and available on the CIBP website, requiring a login for access to past materials.

The host, BCP, was thanked for facilitating the session, highlighting the importance of trade finance in Africa. CIBP has a new president since May, operating under a French presidency with two core strategies: promoting cooperative values among members and exploring business opportunities within the network. Despite being cooperative banks focused on regional development, CIBP members are encouraged to seek trading opportunities in Africa.

BCP, described as a 'super bank,' operates 17 banks across the continent, presenting significant potential for collaboration among CIBP members. Mamoun El Amrani Joutey expressed his pleasure in participating and emphasized the importance of trade finance in fostering economic growth in Africa. He shared insights about BCP's journey in sub-Saharan Africa, highlighting its establishment in the 1920s and expansion into the region starting in 1991. BCP is the second largest bank in Morocco and has a strong focus on small and medium enterprises and microfinance. The bank's African presence allows it to leverage its local expertise and network, particularly in countries like Senegal and Cameroon.

Mamoun underscored the competitive landscape in Africa, where BCP faces both local and international banks. He noted that BCP's cooperative banking model aligns with the values of CIBP members. The session aimed to remind members of the opportunities available in the African market, particularly in trade finance, which is relatively low-risk compared to other banking products. Mamoun highlighted that only 5% of default rates are observed in sub-Saharan Africa, indicating a favorable environment for investment. He encouraged CIBP members to consider BCP for their trade finance needs and emphasized the bank's commitment to supporting transactions across its geographical presence.

He also discussed the high engagement in trade finance, particularly in West Africa, where 93% of local banks' commitments are dedicated to this sector. Mamoun pointed out the disparities in capital among banks in different regions, noting that North and South Africa are better capitalized than Central and West Africa. He emphasized the need for collaboration to mitigate risks and enhance trade finance opportunities in less capitalized regions.

The session concluded with gratitude for Mamoun's insights and the importance of collaboration among CIBP members, as well as an invitation to future sessions.

Keypoints

• The CIBP SPARK session focused on 'Trade Finance in Africa' with a case study by Banque Centrale Populaire (BCP) Morocco.
• El Amrani Joutey Mamoun, Director of Correspondent Banking at BCP, was the guest speaker for the session.
• The session highlighted the potential for business and trade opportunities among CIBP members, particularly in Africa.
• BCP is a significant player in Africa, operating 17 banks across the continent, offering opportunities for CIBP members to enter the African market.
• BCP collaborates with the African Development Bank to provide competitive financing solutions and technical assistance to subsidiaries and sub-Saharan banks.
• BCP offers market intelligence on sub-Saharan Africa and can provide tailored reports for specific regions.
• The cooperative model of BCP is currently only implemented in Morocco, with direct participations in microfinance and banking subsidiaries in the subcontinent.

Verbatims

• - "As you know, the SPARK sessions are recorded and you can all find them in our website under the page of we share."
• - "This can create opportunities also for CIBP members to enter within the African continent."
• - "Trade finance in Africa particularly was very unknown to other foreign institutions."
• - "So as I said, despite the majority of the unknown market, only 5% of default rates is observed in sub-Saharan Africa, which allow us as a group and also to the other foreign financial institutions some rooms for them to further target this African markets and also further invest in these countries by providing fast line facilities."
• - "The majority of the British banks and French banks are now exiting the market, which give us more opportunities as a Moroccan bank to of course enhance and develop further our presence in those country and also keep supporting the business in our presence countries."
• - "BCP collaborates with the African Development Bank to provide financial solutions and capacity building for subsidiaries and sub-Saharan banks."

Glossary

• AMIFA

  AMIFA is the microfinance subsidiary of BCP, dedicated to supporting SMEs and SME activities in Africa, particularly in Central and West Africa.

• Banque Centrale Populaire (BCP)

  BCP is a major banking institution in Morocco, known for its extensive network and role in facilitating trade finance across Africa. It operates as a cooperative bank, focusing on regional and national development.

• Business Opportunities in Africa

  The African continent presents significant business opportunities for CIBP members, particularly in sectors like trade finance. The presence of BCP in Africa highlights potential partnerships and market entry points.

• CIBP (Confédération Internationale des Banques Populaires)

  CIBP is an international organization of cooperative banks, promoting collaboration and shared values among its members. It aims to enhance business opportunities and cooperative values within its network.

• Cooperative Banks

  Cooperative banks are financial institutions owned and operated by their members, prioritizing community needs and development. They are integral to CIBP's network and mission.

• Cooperative Values

  Cooperative values emphasize mutual support, shared responsibility, and community development among cooperative institutions. These values guide the operations and strategies of CIBP members.

• Correspondent Banking

  Correspondent banking involves financial institutions providing services on behalf of other banks, often facilitating international transactions. It plays a crucial role in trade finance by enabling cross-border payments.

• El Amrani Joutey Mamoun

  Mamoun is the Director of Correspondent Banking at BCP and a guest speaker at the SPARK session. He provides insights into trade finance in Africa, leveraging his expertise and BCP's network.

• Financial Institutions Group

  This group within BCP focuses on managing relationships with other financial institutions, enhancing trade finance capabilities. It supports BCP's strategic initiatives across Africa.

• French Presidency of CIBP

  The CIBP is currently under a French presidency, which influences its strategic direction and initiatives. The presidency focuses on uniting members through cooperative values and exploring business opportunities.

• Microfinance

  Microfinance refers to financial services provided to low-income individuals or those without access to typical banking services. BCP is involved in microfinance as part of its cooperative banking model.

• Regional Development

  Regional development refers to efforts aimed at improving the economic and social well-being of specific geographic areas. Cooperative banks like BCP contribute to regional development through financial services and investments.

• SPARK Sessions

  SPARK sessions are recorded events organized by CIBP to discuss various topics relevant to its members, such as trade finance. These sessions are accessible online for members who create a login.

• Super Bank

  A super bank refers to a large banking institution with extensive reach and influence, like BCP with its 17 banks across Africa. Such banks can drive significant economic activity and partnerships.

• Trade Finance

  Trade finance refers to the financial instruments and products that facilitate international trade and commerce. It helps reduce the risks associated with global trade by providing payment guarantees and financing options.