The loan is part of a partnership between the bank and JAIDA, a financing company of microfinance organizations.
Rabat – The European Investment Bank (EIB) announced on Tuesday the signing of a financing contract worth MAD 108 million ( €10 million) to support income-generating activities in Morocco.
EIB said it signed the loan agreement with JAIDA, a Moroccan company that finances microfinance organizations.
The bank said the loan aims to streghten’s JAIDA’s capacity to finance small businesses in Morocco. Part of the goal is to support JAIDA’s programs of financial inclusion and social development, EIBsaid.
“This funding will be used exclusively to finance microcredits of an amount less than 25,000 euros,” the bank noted.
The loan also seeks to help promote activities to maintain employment through micro and small enterprises with less than 10 employees in rural and urban areas. It will also benefit self-employed workers.
“The EIB pursues its objective of promoting sustainable and responsible financial services” for the benefit of income-generating activities” through the support program. The financial empowerment scheme is particularly aimed at rural populations, especially disadvantaged women and youth.
“With this financing, JAIDA’s loan portfolio should be maintained between MAD 800 to 900 million (€74 to 84 million) per year,” EIB said.
Claudia Wiedey, the EU’s ambassador in Morocco, expressed satisfaction with the agreement, highlighting the importance of supporting small businesses.
“In this period of pandemic, it is important to support as many people as possible in their financial empowerment.”
EIB’s Anna Barone described the loan agreement as an important operation that will help JAIDA achieve its goals.
Barone said: “We are happy to be able to support micro-entrepreneurs across the country. Funding and support for project leaders is an action priority for the European Investment Bank.”
JAIDA’s General Manager Meriam Mechahouri said the partnership with EIB will allow JAIDA to consolidate its role as a reliable financier for small businesses in Morocco.
The loan agreement is under the Venture Capital Mechanism for Southern Neighboring Countries, an operation the EU and EIB created to support private sector development, inclusive growth, and job creation.