The European Bank for Reconstruction and Development is providing a loan of up to Dh 110 million to Fondation Albaraka, one of the largest microfinance institutions in Morocco for on-lending to local micro enterprises.
Access to finance through banks remains extremely limited for micro, small and medium-sized enterprises (MSMEs) in Morocco. The EBRD funds will offer much-needed support for MSMEs and contribute to greater financial inclusion and more employment opportunities in the country.
This financing to Albaraka will help expand its lending capacity to MSMEs contributing to the development of entrepreneurs and small businesses in Morocco.
Marie-Alexandra Veilleux, the EBRD Director for Morocco said: “We are very pleased to partner with Albaraka through a loan in local currency contributing to the development of very small businesses in Morocco which are the backbone of the economy.”
Mouatassim Belghazi, Founder and President of Albaraka, said: “We are pleased to count the EBRD as a financial partner. This partnership will enable us to continue our mission in financial inclusion and the promotion of income-generating activities in Morocco by providing financing tailored to the specific needs of micro entrepreneurs and small businesses."
In 2017, the EBRD signed a Memorandum of Understanding with Morocco to pave the way for lending to local small and medium-sized enterprises (SMEs) in local currency, mitigating their exposure to exchange rate volatility.
Morocco is a founding member of the EBRD and became a country of operations in 2012. To date, the Bank has invested over €1.4 billion in over 42 projects in the country. The Bank has also supported more than 340 Moroccan SMEs by providing business advisory services.