Morocco's BANK OF AFRICA, previously BMCE Bank, is playing a key role in the country’s efforts to alleviate poverty, stimulate economic growth and advance sustainability. Mamoun Tahri-Joutei, head of business intelligence and sustainability at BANK OF AFRICA, outlines the organization’s strategies for addressing these challenges.
How do you envision the role of banks evolving to drive a positive future? What specific initiatives or strategies are you implementing to align with this vision?
BANK OF AFRICA has a presence in 32 countries worldwide and 20 countries in Africa. It was established in 1959 as a public bank and subsequently privatized in 1995. It has consistently fulfilled a pivotal social function within the Moroccan economy.
The bank is currently focused on achieving its ESG objectives and is proud to be the leading ESG-compliant publicly listed company in Morocco. This is a significant accomplishment for our company.
Our approach to the environmental aspect of ESG is well recognized both within and outside the bank. We have evaluated the financed emissions of our customer portfolio and are in the process of finalizing our transition plan for 2030 and 2050.
Indeed, Morocco is situated just 14 km from Europe, and the EU is implementing a Carbon Border Adjustment Mechanism that will impose tariffs on numerous imported products. We are assisting businesses in Morocco with their decarbonization process. Our bank employs advisors who assist customers in reducing their emissions. Furthermore, we are developing a Sustainability Institute to guide our customers in achieving greater sustainability.
We are also engaged in the social aspect of ESG. One of our most significant achievements in this field is the establishment of an Entrepreneurship Observatory. Established in 2008, this initiative is an online portal that provides SMEs and entrepreneurs with non-financial services to assist them at every stage of the business life cycle.
Our initial objective was to expand our market share in the SME sector. However, we identified a lack of entrepreneurial activity in Morocco. Consequently, we took the initiative to develop the market. Our first step was to establish an SME ecosystem, which now encompasses over 300 stakeholders, including state agencies, public companies, SMEs, and entrepreneurs. And it has an extensive regional footprint. We wanted to help Moroccans throughout the country.
How are you incorporating environmental considerations into your business practices and product offerings?
In Morocco, as in Europe, there is an increasing focus on ESG regulations. Furthermore, companies are required to adapt to the new regulations in a relatively short timeframe. As previously stated, we are collaborating with our clients to assist them in decarbonizing their operations. To this end, we are developing initiatives, including our ESG platform and sustainability institute, with the objective of providing enhanced support.
From another perspective, a significant challenge for Morocco in the context of climate change is water scarcity. It is essential to alter the way people perceive and utilize water. BANK OF AFRICA is participating in the creation of a national water institute, together with nearly 25 partners, including universities, government ministries, the National Electricity and Water Company… The institute will help developing solutions to tackle the water crisis. Our participation is not merely a demonstration of commitment; it is also an opportunity to share our expertise.
Moreover, Morocco represents one of the most significant renewable energy markets in Africa, with robust wind and solar capabilities and nascent hydrogen generation prospects. The country’s objective is to achieve 50% of its electricity production from renewable sources by 2028. BANK OF AFRICA is providing finance and advice to promote ESG and encourage the transition to sustainable energy.
In addition to encouraging businesses to reduce their carbon emissions, we are also advocating changes to legislation in Morocco that will allow companies that generate their own electricity to sell it and transfer it into the national grid. This will further encourage the transition to sustainable energy.
How does your bank support economic growth within the communities you serve?
I have already discussed about the Entrepreneurship Observatory and the SME training that has resulted from it. Another significant issue for us is the provision of training and upskilling opportunities for young people. It is estimated that up to 30% of the Moroccan population aged between 15 and 25 are not engaged in employment, training or education. It is a significant challenge for us to identify a solution to this situation.
As a financial institution, we have a duty to assist young people in Morocco in securing a promising future. We are engaging in discussions with a number of individuals and organizations to identify solutions to this issue. One of the initiatives we will be launching shortly is an internship scheme within the bank. Our objective is to prepare 200 to 300 young people annually with the skills they require to enter the job market and secure employment in a competitive environment.
We have already implementing a number of other initiatives. We have established a series of incubators to support the development of startups, and we also run an annual competition to identify the most promising young entrepreneur.
Can you provide examples of programs or partnerships that have been particularly successful in improving financial inclusion or financial health?
Our Entrepreneurship Observatory has developed a training program to assist small businesses and solo entrepreneurs in building their capacity. The program has proved to be a resounding success, with over 5,000 companies trained over the past ten years. Over half of these companies are managed by women, and many of these businesses are now providing for their families and offering them a sense of dignity.
I am proud to report that our SME training program was initiated from scratch and has since expanded across all regions of Morocco. It has been instrumental in enabling numerous individuals to escape poverty. Our startup incubators have also facilitated partnerships through discussions with public authorities and the sharing of our training model.
What about your internal culture? How are you fostering a culture of wellness and support for all employees in the workplace?
Our initial approach to ESG was characterized by a high degree of flexibility. In response to customer demand, economic conditions and the needs of the country, we have shifted our approach to encompass a greater focus on social issues. This transition has been well received by all employees, who now support the bank's commitment to social and environmental responsibility. There is a clear understanding of the value of these initiatives and a willingness to invest the bank's resources in them.
