The loan will mainly support entrepreneurial initiatives in the regions affected by the earthquake of Al Haouz in 2023.
The European Bank for Reconstruction and Development (BERD) and the European Union (EU) are associated to support young entrepreneurs in Morocco.
The BERD granted a loan of up to 20 million euros, in local currency, to the Moroccan microfinance institution Al Amana Microfinance. This initiative, which is part of the BED Business Youth Program, aims to help micro, small and medium -sized enterprises (MPME) led by young entrepreneurs under the age of 35.
One of the main objectives of this project is to help the regions affected by the devastating earthquake which struck the center of Morocco in 2023. The loan aims to respond to the financial challenges facing young entrepreneurs, especially since Only 14 % of young Moroccans currently have access to a bank account, the BERD said in a press release.
“MPME held or led by young entrepreneurs represent a single market opportunity for the Moroccan financial sector and a single vehicle to increase financial inclusion, but they continue to deal with funding deficits that limit their economic opportunities”, said the press release.
He noted that Almana Microfinance will also receive training to better support eligible MPMs and ensure the success of the loan.
-In addition, young entrepreneurs who borrow within the framework of this program will be offered training in digital and non -financial skills, funded by the Impact Fund on Small Business Businesses.
This financial system includes risk coverage for loans granted to areas affected by the earthquake. The EU supports this initiative through its European Fund for Sustainable Development Plus (Fedd+), which mobilizes public and private financial resources to support sustainable development.
Created in 1997, Al Amana Microfinance has 647 agencies across Morocco and employs more than 2,400 people. Its services are aimed at communities in cities and remote areas in order to promote financial inclusion and economic growth, concludes BERD.
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