Rabat – Morocco’s central bank, Bank Al-Maghreb (BAM), and CDG Invest, the investment arm to the CDG Group, signed an agreement on February 10 to develop Morocco’s Fintech ecosystem.
Through the agreement, CDG Invest and BAM pledged to support Fintech startups benefiting from the 2019 CDG Invest program, according to a joint press release.
Called “Programme 212 Founders,” the joint initiative aims to provide financial support and guidance for business makers bringing innovative ideas to Morocco’s startup landscape, notes the release.
Under the agreement, BAM commits to providing necessary guidance and financial support to Fintech startups selected by the CDG Invest program and will mediate between the said Fintech startups and banks.
For its part, CDG will offer guidance for Fintech startups from the first phase of product conception, the creation, and market reception of the product.
Read Also: African Fintech Startups Attracted the Most Funding in 2021
In addition to providing financial and technical support for Fintech startups, the agreement equally extends to sharing Fintech expertise and know-how, fostering cooperation, and further contributing to the development of Morocco’s Fintech ecosystem, concludes the press release.
BAM’s Governor (Wali) Abdellatif Jouahri, and CDG’s General Director and CDG Invest Board Director, Abdellatif Zaghnoun, sealed the agreement on Thursday.
While Morocco has ramped up efforts to develop its startup ecosystem, Fintech startups in the country are lagging behind due to a multitude of reasons, including the major challenge of gaining consumers’ trust.
The average Moroccan consumer relies on cash transactions as they do not trust digital financial transactions.
A prevailing “Failure Culture” in Morocco further hinders the development of Fintech in Morocco as young entrepreneurs are weary of venturing into the digital business, according to experts.
Read Also: Despite Thriving Service Industry, Morocco Lagging Behind in FinTech
