Rabat – Germany has committed to deliver €165 million (MAD 1.8 billion) to Morocco to increase the country’s financial inclusion and support for small businesses.
The dedicated budget includes a loan of €150 million (MAD 1.6 billion) issued by Germany’s KfW Development Bank in addition to a €15 million (MAD 166 million) grant, says the Director of KfW’s Country Office in Rabat Markus Faschina.
The executive reported on Wednesday on LinkedIn that Germany aims “to support Morocco’s ambitious reforms for financial inclusion, specifically to increase the supply of and access to finance for small businesses.”
Local small and medium businesses have been heavily impacted by the COVID-19 crisis with the exception of digital stores that benefitted from a rise in e-commerce activity during the pandemic.
By supporting Morocco’s small businesses, Germany “paves the way for other areas of cooperation,” the German official noted, adding that “this reform-oriented financing marks a new approach to our cooperation.”
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Faschina signed two financing contracts for the loan and grant with Morocco’s Minister of Economy and Finance Nadia Fettah Alaoui. Germany’s Ambassador to Rabat Robert Dolger attended the signing ceremony on Wednesday in Rabat.
The signing underscores the conclusions reached by Moroccan and German officials during the recent bilateral meeting organized in Berlin on October 18-19.
The event provided an opportunity to assess cooperation opportunities in relation to the development of Morocco’s green hydrogen potential.
It also discussed the progress of development projects set by Rabat in line with the New Development Model, including the social coverage and pension schemes as well as the integration of youth and women in the labor market.
According to an earlier tweet from the German Embassy in Rabat, KfW agreed to issue a €122 million (MAD 1.3 billion) loan to support Moroccan efforts to generalize social coverage. An additional €38 million (MAD 423 million) was dedicated to the support of the construction of the country’s first green hydrogen plant.
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