The initiative is part of the economic stimulus to support the resilience of agriculture.
Rabat – Credit Agricole du Maroc (CAM) group announced on Thursday that it has doubled the financing budget dedicated to Morocco’s agriculture sector to MAD 8 billion ($875 million) for the 2020-2021 season.
The statement from the banking institution said the approach is in accordance with the guidelines of King Mohammed VI.
In recent speeches, the monarch emphasized the importance of agriculture and rural development.
“I wish to emphasize, in this respect, the special importance that needs to be given to agriculture and rural development under the economic recovery plan,” the King said during the opening of Parliament on October 9.
He said that the plan should work to contribute to the development of agricultural production and to facilitate the integration of professionals in rural areas.
Credit Agricole du Maroc said that it doubled the budget to support national agriculture campaigns from MAD 4 billion to MAD 8 billion ($437 million to $875 million).
The budget is in line with the “strategic axes of ‘Green Generation 2020-2030.’”
The bank said the envelope should allow farmers, rural entrepreneurs, and agro-industrialists to ensure the continuity of their activities and generate growth.
Credit Agricole Maroc will break down the budget into three parts. It will dedicate the first MAD 4 billion ($437 million) to agriculture via operating and investment credits to the equipment and modernization of farms, while MAD 3 billion ($328 million) will go to the agro-industry through operating credits and investments for agri-industrial and food projects.
It will dedicate the remaining MAD 1 billion ($109 million) to encouraging the creation of a middle class in rural areas. It will also dedicate it to developing entrepreneurship through financing adapted to economic activities in rural areas and projects generating income and added value, excluding agriculture.
The bank said that the exceptional mobilization of funds saw light thanks to the growth of customer deposits, international financing lines obtained from donors, and various bonds issued by the bank.
The bank also vowed that its subsidiaries will contribute to the implementation of the budget, recalling that the MAD 8 billion ($875 million) fund is an integral part of an “ambitious program” to support the 2020-2021 agriculture campaign.
In addition to the health crisis, a lack of rainfall last season also caused direct impacts in the sector.
The government acknowledged the crisis in agriculture, including the decline in crop production.