Microfinance in Morocco: the EIB and the EU Delegation offer promising prospects

Faced with major challenges, in particular a growth crisis in 2007 and external disruptions over the past fifteen years, Morocco’s microfinance sector has shown a remarkable capacity for resilience, with positive average annual growth, according to the EIB, the EU Delegation to Morocco, FNAM, JAIDA and CMS in a joint press release. However, despite steady progress, the sector’s performance has not yet fully realized its potential to impact financial inclusion at the national level.

This meeting created a space for exchange between renowned experts, both national and international, around the prospects for this vital sector for development. The event provided a unique platform to discuss current challenges and develop innovative strategies aimed at revitalizing the sector. The debates highlighted the importance of integrating lessons learned from previous crises and turning to technological innovations to ensure their sustainability and increase their reach.

This day of reflection allowed industry players to share international experiences and define three key development areas to strengthen financial inclusion.

Firstly, an in-depth analysis of the potential microfinance market will promote more accurate segmentation, and secondly, the acceleration of digital integration in players’ development models will aim to modernize the sector. The third axis aims at the transformation of certain microcredit associations into microfinance companies. These development areas focus on the diversification of microfinance products and services in Morocco, the expansion of the number of beneficiaries and the continuous improvement of the customer experience.

The Technical Assistance Program for the Microfinance Mechanism (TAFI-SN), with the support of the European Commission, is particularly recognized for its key role in providing specialized technical assistance and improving access to finance for micro-enterprises and very small and medium-sized enterprises (SMEs). ).

This initiative is part of an overall strategy to improve the quality of financial services, which is essential for promoting entrepreneurship and financial inclusion. In addition, the TAFI-SN program provided technical assistance to several microfinance institutions in Morocco, facilitating the implementation of studies to assess the evolution of microfinance, identify growth opportunities and strengthen financial inclusion.

In particular, a detailed study of the non-financial needs of microfinance clients collected the opinions of more than 1,500 clients across four countries, including Morocco, highlighting the importance of support services such as training, coaching and networking to address post-pandemic challenges and economic growth.

Quoted in the press release, the EU Ambassador to Morocco, Patricia Llombart Cussac, stated: “This event underlines the clear complementarity of the initiatives we support between EU organizations, with our Moroccan partner, in favor of the financial inclusion of micro and small businesses. , crucial for a sustainable, inclusive and job-generating economy. And added: “Today’s discussions will help support the National Financial Inclusion Strategy (SNIF) towards its objective of making microfinance an even stronger lever for financial inclusion and socio-economic development.” “This day marks a pragmatic and promising step forward for Morocco’s microfinance sector. Thanks to the support of committed partners such as FNAM, JAIDA and CMS, we have laid the foundation for a well-thought-out approach to address the challenges specific to the sector,” said the Head of the EIB Representation in Morocco, Adrien de Bassompierre. “Our common efforts for sustainable growth and broader financial inclusion reflect our commitment to Morocco’s socio-economic development and to an inclusive and prosperous financial future for all Moroccans,” he asserted. For his part, the President of FNAM, Ahmed Ghazali, welcomed the organization of this international microfinance meeting in Morocco, which “provides a forum for exchange and reflection on the key issues of the sector and its ‘future growth prospects’.

According to him, “the main ambition is to create a strong time for exchange, sharing experiences around the problem of institutional evolution, the economic model of the sector and creating interactions between the different actors”. Mr. Ghazali also stressed the prerequisite for developing the legal, regulatory and fiscal framework to make the long-awaited qualitative leap while remaining true to the original mission, which is to support, finance and guide the holders of income-generating projects under the least advantaged population groups. For the Director of the CMS, Naima Sahil, the collaboration with key partners such as the EIB, FNAM and JAIDA plays a crucial role in supporting and guiding the microfinance sector, actively contributing to the implementation of its development strategy.

“Together we unveil promising prospects to catalyze the sector’s potential, support economic development and strengthen financial inclusion, in perfect synergy with the Moroccan SNIF,” she added. JAIDA Managing Director Hatim Seffar said: “In close collaboration with renowned partners such as the EIB, FNAM, CMS, MFIs and key ESS players in Morocco, JAIDA is fully committed to promoting an inclusive and supportive economy for a prosperous future and a lasting positive result. influence. The SNIF is an essential reference point for the future roadmaps of ESS actors, thus guiding our efforts towards more inclusive and sustainable economic growth.”