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Rabat – Supporting Morocco’s textile industry is central to Morocco’s national strategy to stimulate investment, according to Morocco’s central bank.
“The textile industry is a priority within our investment strategy” affirmed Abedlatif Jouahiri, Morocco’s central bank governor, in a meeting with the Financial and Development Council in the Chamber of Representative today.
Morocco’s central bank, Bank Al-Maghrib (BAM), has set in motion a series of measures to support the national textile industry, Jouahri explained.
BAM established a consulting office to monitor and guide small and medium-sized textile businesses. The office will help businesses access bank loans and help them manage loan portfolios, according to Jouahri.
In addition to the consulting office, the central bank additionally launched the Moroccan Observatory and a fund for Very Small, Small, and Medium-Sized Businesses. The two institutions aim to provide financial as well as legal guidance to businesses within Morocco’s textile industry.
Showcasing the significant gains in the sector, Jouahri revealed that Morocco’s textile industry makes up 32.3% of Morocco’s national production enterprise, against a 25.6% global average in 2000-19.
The figure presents a significant start for the North African country. However, Morocco’s effort remains constrained with limited investment inflow, according to Jouahiri.
Low-investment yield is the main challenge for Morocco’s textile industry, and constrained access to funding is among the main challenges limiting growth prospects for small and medium-size businesses in Morocco, reckons the governor.
Market uncertainty, and income inequality, coupled with inadequate monetary policies all constrain the growth of businesses in Morocco. Finding sustainable lending options is a significant challenge for Moroccan businesses affecting their long-term growth rate, concludes Jouahri.
