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Join on Telegram Rabat – The World Bank has approved a $450 million loan to support Morocco’s reforms aimed at advancing financial and digital inclusion
In a press release issued on April 3, the World Bank said that the financing is the third in the series, stressing that it was approved to continue supporting access to financial and digital services for individuals and businesses in Morocco.
Citing the program’s achievements since its inception, the World Bank recalled that it has supported the Moroccan government in implementing reforms to improve financial inclusion, digital entrepreneurship, as well as access to digital infrastructure and services for individuals and businesses.
The bank’s statement also highlighted that the additional financing has allowed Morocco to significantly advance the frontiers of financial and digital inclusion. “44% of Moroccans today have access to a bank account versus 29% in 2017, and 30% use digital payments versus 17% in 2017,” the World Bank said.
The infrastructure for digital payments has also expanded, with 19 active mobile payment providers now covering 31% of rural districts.
As part of the initiative, various actions were also taken to support women’s financial inclusion and economic empowerment.
According to the World Bank, women’s presence on the boards of listed companies increased from 14.9% in 2019 to nearly 20% by the end of 2022.
Meanwhile, 13.5% of tech start-ups led by women benefited from an annual foreign currency allocation during the pandemic to import goods and services needed for their operations.
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A number of challenges persist, however, the World Bank noted, citing the gender gap in access to financial services, which is still at 25 percentage points.
Another challenge remains the need to strengthen merchants’ use and acceptance of digital financial services, the World Bank added, explaining that this third financing aims to consolidate Morocco’s reforms to promote financial inclusion.
Jesko Hentschel, Country Director for the Maghreb and Malta at the World Bank said: “The Moroccan government has begun to operationalize the New Development Model (NDM) recommendations by digitizing social protection programs, supporting equity financing and non-banking instruments for innovative companies, and digitizing public procurement for better access of SMEs to public contracts.”
Morocco’s reforms include the creation of a new legal framework for microfinance institutions, as well as the implementation of digital management and payments for Tayssir, the country’s largest cash transfer program.
Speaking about the reforms, Caroline Cerruti, Senior Financial Sector Specialist, and Program Co-Leader at the World Bank explained: “These reforms include a new legal regime for microfinance institutions allowing them to take deposits and expand their outreach, and a new law on credit bureaus for processing non-financial data so that the unbanked people can get a history to access credit.”
The senior financial sector specialist continued, “The introduction of digital management and payments for Tayssir, provides subsidies to 3 million schoolchildren and helps in the establishment of the social protection reform.”
Last month, the World Bank approved an additional $250 million in financing for Morocco’s 2015-2030 education reform.
Read Also: World Bank to Provide $250 Million to Support Morocco’s Education Reform
