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Casablanca – The International Finance Corporation (IFC) is considering a $15 million loan to Moroccan microfinance institution Fondation Arrawaj to expand access to credit for small businesses and underserved entrepreneurs across the country.
Details of the proposed investment were published by the IFC on its disclosure portal as part of the institution’s transparency process. The financing would support Arrawaj’s lending activities to micro and small enterprises, many of which face difficulties obtaining loans from traditional banks.
According to the disclosure, the financing would take the form of a senior loan with a maturity of up to five years and a grace period of one year. The loan may be provided in US dollars, euros, or Moroccan dirhams.
The investment falls under the IFC’s MSME Finance Platform Base of the Pyramid program, which aims to strengthen financial inclusion by supporting institutions that lend to small businesses and low-income entrepreneurs.
Fondation Arrawaj is one of Morocco’s largest microfinance institutions. It provides financial services to thousands of small borrowers across the country, including microentrepreneurs, small family businesses, and individuals operating in the informal or semi-formal economy.
Access to financing remains a major challenge for many small businesses in Morocco, particularly those that lack formal financial histories or collateral. Microfinance institutions play a key role in bridging that gap by offering smaller loans and more flexible lending structures.
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The IFC said the proposed financing would help Arrawaj expand its portfolio of microloans and increase its capacity to reach clients who remain outside the traditional banking system. The funding is expected to support lending to a wide range of micro and small enterprises operating in different sectors of the Moroccan economy.
In addition to the loan, the IFC plans to provide advisory support aimed at strengthening Arrawaj’s operations. This support may focus on areas such as risk management, product development, and institutional capacity.
The project has been categorized as FI-3 under the IFC’s environmental and social risk classification system, indicating that the financing is expected to involve minimal environmental or social risks. The classification reflects the nature of the investment, which is directed toward a financial intermediary rather than a specific infrastructure or industrial project.
The disclosure marks an early step in the IFC’s review process for the proposed investment.
