EBRD and EU promote youth entrepreneurship in Morocco

January 27, 2025
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The European Bank for Reconstruction and Development (EBRD) is supporting young entrepreneurs in Morocco with a loan of up to €20 million (to be provided in local currency) to Al Amana Microfinance, a leading microlender in the country. This financing package is being provided under the EBRD’s Youth in Business programme to assist Al Amana with on-lending to private micro, small and medium-sized enterprises (MSMEs) in Morocco that are owned or led by entrepreneurs under 35 years of age, with a special focus on regions affected by the earthquake that struck the country in 2023.

 

MSMEs owned or led by young entrepreneurs represent a unique market opportunity for the Moroccan financial sector and a unique vehicle to increase financial inclusion, but they continue to face financing gaps constraining their economic opportunities. It is estimated, for example, that only 14 per cent of young Moroccans have a bank account.

 

This facility will be accompanied by a comprehensive technical cooperation package. Al Amana will receive capacity-building training to improve its ability to cater for the financial needs of eligible MSMEs, as well as result-based payments funded by the EBRD’s Southern and Eastern Mediterranean Multi-Donor Account. The technical cooperation package will also include training opportunities for Al Amana’s sub-borrowers (with a focus on digital and non-financial services), which will be funded by the EBRD’s Small Business Impact Fund.

 

The facility is being supported by the European Union (EU) through its European Fund for Sustainable Development Plus (EFSD+). EFSD+ was established in June 2021 and offers EU partner countries assistance with key investments through grants or financial guarantees. In this way, the EU mobilises additional financial resources for sustainable development from the public and private sectors. EFSD+ has a total global guarantee capacity of €39.8 billion for the period from 2021 to 2027, of which €22.5 billion will be used in the EU’s enlargement and neighbourhood regions.

Countries covered:

  • Morocco