Rabat – The European Bank for Reconstruction and Development (EBRD) has teamed up with the European Union (EU) and Moroccan financing institution Finéa to extend vital support to small businesses in areas affected by the Al Haouz earthquake.
The 7.0-magnitude earthquake struck Morocco’s Al-Haouz province on September 8, 2023, inflicting a heavy human toll and causing widespread physical damage.
Through a loan agreement worth up to €23.5 million, the partnership seeks to help local enterprises regain footing and rebuild in activity in a difficult economic climate.
The EU is backing the loan with a first-loss guarantee under its European Fund for Sustainable Development Plus (EFSD+), allowing Finés, part of the CDG Group, to take on more risk and reach businesses that often face limited access to funding.
The focus is mainly on very small, small, and medium-sized enterprises (TPMEs), most of which are engaged in public service supply chains, from school and hospital supplies to infrastructure and lighting on the streets. The intention is to help these companies access public and private contracts and facilitate them to be included in the overall reconstruction effort.
While the program is targeted at the worst-hit areas, firms located outside the Casablanca-Rabat economic corridor will also benefit from the program. The objective is to ensure that TPMEs across the country have access to the resources they need to stay alive, adapt, and prosper.
Finéa will also introduce a new digital platform as part of the program. The system will be incorporated into its banking infrastructure and allow for the development of factoring and supply chain financing products tailored to small business conditions. The technical support is designed to allow TPMEs to cope with cash flow and remain competitive in a challenging environment.
A track record in local support
A non-banking financial institution accredited by Bank Al-Maghrib (BAM), Finéa focuses on helping businesses secure financing and public procurement opportunities. Its approach relies on a combination of direct funding, co-financing, and refinancing, all aligned with its strategy to act as a catalyst for economic participation.
The institution also manages Morocco’s Public Procurement Guarantee Fund (FGCP), which eases access to loans for companies awarded public contracts. In 2023, Finéa reported total assets of €216 million.
A broader commitment to sustainable investment
The EU’s EFSD+ was set up in 2021 to support investment in partner countries. With a guaranteed capacity of nearly €40 for the 2021-2027 period, the fund encourages public-private collaboration for sustainable development. Over half of the EFSD+ guarantees focus on countries in the EU’s neighborhood, including Morocco.
Since Morocco became a founding member in 2012, the EBRD has invested more than €5.3 billion in 112 projects. Morocco’s aims include sustainable energy, private sector growth, infrastructure reform, and non-sovereign funding, which are especially important in the aftermath of natural disasters.
The EBRD remains a significant player in the Moroccan economy. Earlier this year, it partnered with the EU to launch a new initiative for young Moroccan entrepreneurs. Through a €20 million local currency loan to Al Amana Microfinance, the EBRD will help micro, small, and medium-sized enterprises owned by individuals under the age of 35 as part of its Youth in Business program.
