40 Million Euros to Strengthen Microcredit and Financial Inclusion in Morocco
The European Bank for Reconstruction and Development (EBRD) has approved a financing program totaling €40 million for the microfinance institution “Al Amana Microfinance.” This support aims to encourage entrepreneurship among women and youth while enhancing financial inclusion in Morocco.
Two Credit Lines of €20 Million Each
This financing is structured around two unsecured loans of €20 million each, as part of the “Women in Business” and “Youth in Business” programs. These initiatives benefit from guarantees provided by the European Fund for Sustainable Development.
The first program is dedicated to supporting businesses led by women, with the goal of facilitating their access to financing and assisting them in developing their activities, particularly through targeted credit lines and technical support.
Special attention is given to areas affected by the Al Haouz earthquake in September 2023, in order to support local economic recovery.
Enhanced Support for Young Entrepreneurs
The second program targets businesses led by individuals under 35 years of age. It aims to encourage youth entrepreneurship, improve access to financing, and support economic initiatives in regions impacted by the earthquake, thereby contributing to reconstruction and territorial development efforts.
Support Beyond Financing
In addition to financing, this partnership also includes training programs and technical assistance for the beneficiary microfinance institution. Consulting services, along with risk-sharing mechanisms and additional incentives supported by the European Union, are also planned.
A Key Player in Microcredit in Morocco
“Al Amana Microfinance,” a subsidiary of the Banque Centrale Populaire group, is the leading player in microcredit in Morocco. The institution manages an asset portfolio of approximately €496 million and boasts a network of around 500 branches across the country.
It supports more than 296,000 active clients, primarily from low-income households and very small enterprises, with a strong focus on women and rural populations.
A Lever for Financial Inclusion
According to the EBRD, this financing will help strengthen financial inclusion in Morocco and broaden access to financial services for populations excluded from the traditional banking system, thus promoting local economic growth and job creation.
