IFC invests $204m in Moroccan bank to expand operations in sub-Saharan Africa

The International Finance Corporation (IFC) is investing a sum of $204 million in Morocco-based Banque Centrale Populaire (BCP), helping the bank to expand operations and support smaller businesses in Morocco and sub-Saharan Africa.

With the investment, the IFC secures a 5% stake in BCP, the World Bank Group member said in a statement.

The investment was provided by the IFC ($53.8 million), the IFC Capitalization Fund ($127.5 million) and the IFC Africa Capitalization Fund ($22.7 million).

According to the IFC, the investment will support the growth of the bank in Morocco and help it expand in sub-Saharan Africa, where access to finance, in particular for smaller firms, remains a challenge.

This is the largest IFC equity investment in a Morocco-based bank to date.

The transaction will support cross-border investment and facilitate greater economic and financial integration in the region, the IFC says.

By Ekow Quandzie