Agadir – Morocco’s House of Representatives (lower house of Parliament) unanimously adopted a bill to establish the legal framework to regulate collaborative financing and crowdfunding on Wednesday, February 10.
Law No.15-18 governs collaborative financing activities in Morocco. The Treasury and External Finance Department (DTFE) explained that the legislation is part of efforts to support economic and social development in Morocco.
The legal framework will make new forms of financing available for very small to medium-sized enterprises (VSEs and SMEs) as well as for young people with innovative projects. The framework will also provide a secure and transparent financing mechanism, allowing potential funders to actively participate in governmental development projects.
Morocco’s Ministry of Economy and Finance originally submitted a draft bill to regulate crowdfunding on March 21, 2018. The draft law defined the conditions under which the relevant companies were allowed to operate, as well as the various modes of financing authorized in this context.
The press release from DTFE indicated that the new legal framework establishes a complete regulatory mechanism for collaborative financing activities. Bill 15-18 includes the creation of collaborative financing platforms (PFC) while defining the authorization system.
Crowdfunding, also known as collaborative financing, is the practice of funding a project by raising small amounts of money from a large number of people, usually through the internet. The financing can come in one of three forms: Loans, capital investment, or donations.
A study from 2019 on crowdfunding in Morocco showed that the biggest obstacle that prevents Moroccans from setting up their own start-ups is the lack of funding, with 25% of respondents indicating as such. The new bill on crowdfunding will make it easier for young entrepreneurs to innovate while strengthening Morocco’s economy.