Microfinance in Morocco: The EIB and the EU Delegation reveal promising prospects

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The European Investment Bank (EIB), as well as the Delegation of the European Union (EU) to Morocco, and in collaboration with the National Federation of Microcredit Associations (FNAM), JAIDA, and the Mohammed VI Center for Support to Solidarity Microfinance (CMS), concluded a day of strategic reflection in Skhirat, focused on the growth of microfinance in Morocco.

Faced with major challenges, notably a growth crisis in 2007 and external disruptions over the past fifteen years, the microfinance sector in Morocco has demonstrated a remarkable capacity for resilience, posting positive average annual growth, indicate 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 exchanges between renowned experts, both national and international, around the prospects for this essential 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 its sustainability and broaden its reach.

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

Firstly, an in-depth analysis of the potential microfinance market will promote more precise segmentation and, secondly, the acceleration of digital integration in the development models of the players aims to modernize the sector. The third axis envisages the transformation of certain microcredit associations into microfinance companies. These areas of development target the diversification of microfinance products and services in Morocco, the expansion of the beneficiary base and the continuous improvement of the customer experience.

The Technical Assistance for Microfinance Mechanism (TAFI-SN) program, with the support of the European Commission, has been particularly recognized for its key role in providing specialized technical assistance and improving access financing for micro-enterprises and Very Small and Medium Enterprises (SMEs).

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

A detailed survey on the non-financial needs of microfinance clients notably gathered the opinions of more than 1,500 clients spread across four countries, including Morocco, highlighting the importance of support services such as training, coaching and networking to address post-pandemic challenges and stimulate economic growth.

Quoted by the press release, the EU Ambassador to Morocco, Patricia Llombart Cussac, declared: “This event underlines the obvious complementarity of the initiatives that we support between EU organizations, with our Moroccan partner, in favor of 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-development. -economic “. “This day marks a pragmatic and promising step forward for the microfinance sector in Morocco. Thanks to the support of committed partners such as the FNAM, JAIDA and the CMS, we have laid the foundations for a thoughtful approach to address the challenges specific to the sector,” for his part, indicated the head of the representation of the EIB in Morocco, Adrien de Bassompierre. “Our common efforts towards sustainable growth and broader financial inclusion reflect our commitment to the socio-economic development of Morocco and to an inclusive and prosperous financial future for all Moroccans,” he maintained. For his part, the president of the FNAM, Ahmed Ghazali, welcomed the holding of this international microfinance meeting in Morocco which “constitutes a forum for exchanges and reflection on the major issues of the sector and its prospects for growth. ‘future “.

According to him, “the main ambition is to create a strong time for exchange, sharing of experiences around the problem of institutional evolution, the economic model of the sector and to create interactions between the different actors”. Mr. Ghazali also emphasized the prerequisite of developing the legal, regulatory and fiscal framework to achieve the much-hoped-for qualitative leap while remaining faithful to the original mission, which is to support, finance and accompany the holders of income-generating projects among the least advantaged populations. For the director of the CMS, Naima Sahil, collaboration with key partners such as the EIB, FNAM, and JAIDA, plays a pivotal role in supporting and accompanying the microfinance sector, actively contributing to the implementation of its development strategy.

“Together, we are unveiling promising prospects to catalyze the sector’s potential, support economic development and strengthen financial inclusion, in perfect synergy with Morocco’s 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 promote an inclusive and supportive economy for a prosperous future and a lasting positive impact. The SNIF is an essential reference for the future roadmaps of ESS actors, thus guiding our efforts towards more inclusive and sustainable economic growth.”

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