The International Finance Corporation (IFC), a member of the World Bank Group, announced a trade finance facility for Banque Populaire de Mauritanie (BPM) to assist businesses in Mauritania with financing import and export activities.
The $10 million facility will enable BPM to provide increased lending support to businesses involved in the importation of essential goods such as foodstuffs, construction materials and vehicles and more.
The trade finance facility, made possible through the IFC’s Global Trade Finance Program (GTFP), will not only facilitate the importation of oil products, sugar, wheat, cement, construction equipment, vehicles and consumer goods but also aid the purchase, processing, storage, and transportation of fisheries and mining products for export.
In addition to financial support, the IFC will offer advisory services to BPM, assisting in strengthening its corporate governance and risk management capabilities. By enhancing these aspects, BPM will be better positioned to meet the diverse needs of its clients and improve its overall sustainability.
“The signing of this agreement between the IFC and BPM, as the first Mauritanian bank to join the IFC’s GTFP since 2014, is a great mark of confidence from this international institution in BPM. This guaranteed line will offer us an opportunity to further enhance the volume of our financing offer to our importers clients and to better meet their needs,” said Limam Ebnou, Chairman of the Board of Directors of the BPM.
BPM has become the first Mauritanian bank to join IFC’s GTFP since 2014. This membership gives BPM access to a vast network of correspondent banks, expanding its capacity to meet the financing needs of small and medium-sized enterprises (SMEs) in Mauritania. The investment by the IFC in BPM is part of the African Trade and Supply Chain Finance Program (ATRI), which aims to boost regional trade development across Africa, fostering economic growth and strengthening trade relationships within the continent.
“Increasing the availability of trade finance in Mauritania will support businesses and jobs and help keep trade flowing in the country,” said Josiane Kwenda, IFC’s Country Manager for Mauritania, adding that“Access to trade financing is especially important to help speed recovery from the pandemic and as businesses face new challenges arising from global economic uncertainty.”
The trade finance facility will play a crucial role in promoting business and economic development in Mauritania, supporting various sectors, job creation, and the overall resilience of the country’s economy, particularly for SMEs.
