Morocco’s Ministry of Economy, Central Bank, and GPBM will contribute equally to finance the program.
Rabat – King Mohammed VI chaired a signing ceremony in Rabat today, January 27 that produced several agreements regarding the “integrated program to support and finance entreprises.”
The King granted audience to several officials. Minister of Economy and President of Bank al-Maghrib Mohamed Benchaaboun, along with CEO of BMCE Bank of Africa Othman Benjelloun, presented their recommendations for the program.
Benchaaboun said that the government, Bank Al-Maghrib, and the banking sector held several meetings that led to the elaboration of the “Integrated Program to Support and Finance Enterprises.”
The meetings sought to discuss key points shared by the sovereign during his royal speeches, including the King’s speech on the opening of the legislative year in October 2019.
The integrated program covers three main initiatives, including the financing of entrepreneurship, the coordination of support actions for entrepreneurship at the regional level, and the financial inclusion of rural populations.
“This program includes several measures intended to contain and overcome the difficulties that hinder access to finance for young project holders and very small and small enterprises,” Benchaaboun affirmed.
Morocco created a fund under the 2020 Appropriation bill that includes a budget of MAD 6 billion to finance entreprises.
The budget, which spans over three years, is financed equally by the government and the banking sector.
“The fund, which mobilizes significant financial resources, will mainly benefit young project holders and small and medium-sized enterprises to enable them to have access to financing,” the minister said.
The fund also seeks to promote economic and professional integration of workers in the informal sector.
“This is a new incentive and an integrated framework, based on guarantee, financing, private equity and technical assistance mechanisms, set up for the benefit of very small, small and medium-sized companies, young project holders and young innovative companies and self-entrepreneurs,” the economy minister contended.
In addition to financing entreprises, the program is set to contribute approximately 27,000 new jobs and support 13,500 additional companies annually.
The government will also set up commissions at the regional level to coordinate and implement measures relating to entrepreneurial support.
“The Ministry of Economy, Finance and Administration Reform will work with Bank Al-Maghrib to speed up the implementation of the national strategy for financial integration, underlining that the parties concerned will work, as a first step, to strengthen their action in rural areas,” the minister explained.
For his part, the Governor of Bank Al-Maghrib Abdellatif Jouahri said that Morocco’s central bank adopted a set of measures, particularly “the establishment of an unlimited refinancing mechanism by Bank Al-Maghrib of all credits granted to the categories, whether they are operating or investment loans.”
The “refinancing mechanism” program seeks to benefit the agricultural sector and projects carried out in rural areas, said Jouahri.
Jouahri announced that Bank al-Maghrib is collaborating with the Ministry of Economy and GPBM to develop “a model of detailed reports which will be submitted by the banks and which will make it possible to follow, in a precise manner, the indicators relating to the different categories of loans, their geographical and sectoral distribution and, if necessary, the reasons for refusal of loans.”
Jouahri emphasized that stakeholders concerned should contribute to the success of the program, especially the banking sector, public establishments and the beneficiary citizens.
President of the GPBM Othman Benjelloun announced that the banking sector will contribute by up to MAD 3 billion, in equal shares with the Government and Bank Al Maghrib, to the financing of the “Fund of Entrepreneurship Financing Support.”
“Each of the Banks undertakes to provide young project holders and small and medium enterprises with all the support and time they need, in terms of proximity, assistance for structuring, training and consultancy, in all economic sectors and across the Kingdom,” he said.
Like Jouahri, Benjalolune said that the success of this program relies on “individual support carried out at local, regional and national levels, by the Regional Investment Centers, the Caisse Centrale de Garantie and the Moroccan Agency for SME.
The King presided over the signing of three agreements relating to the implementation of the Integrated Program to Support and Finance Enterprises.
The first is an agreement between the Ministry of Economy, Finance and Administration Reform, Bank Al-Maghrib and the Professional Grouping of Banks in Morocco for entrepreneurship financing.
The second agreement is related to the coordination of entrepreneurship support actions at the regional level. Minister of the Interior Abdelouafi Laftit signed the agreement with Benchaaboun, Jouahri, Benjelloun, President of employers’ association (CGEM) Chakib Alj and director general of the Office of Vocational Training and Labor Promotion (OFPPT) Loubna Tricha.
The third document is a partnership agreement between Crédit Agricole du Maroc and Al Barid Bank relating to the financial inclusion of rural populations. Benchaaboun, Jouahri, Chairman of the Executive Board of Crédit Agricole du Maroc Tarik Sijilmassi, and Chairman of the Board of Al Barid Bank Najmeddine Redouane signed the agreement.
