MOROCCO – Morocco has created a fund under the 2020 Appropriation bill that includes a budget of MAD 6 billion (about US$622) to finance enterprises.

Morocco World News reported that the fund, which spans over three years, is financed equally by the government and the banking sector.

The integrated program covers three main initiatives, including the financing of entrepreneurship, the coordination of support actions for entrepreneurship at the regional level, and the financial inclusion of rural populations.

To kickstart the program, King Mohammed VI chaired a signing ceremony in Rabat that produced several agreements that will provide a framework within which the integrated program will be implemented.

Present during the signing ceremony were the minister of Economy and President of Bank al-Maghrib Mohamed Benchaaboun, along with CEO of BMCE Bank of Africa Othman Benjelloun.

Benchaaboun said that the government, Bank Al-Maghrib, and the banking sector held several meetings that led to the elaboration of the “Integrated Program to Support and Finance Enterprises.”

The first is an agreement between the Ministry of Economy, Finance and Administration Reform, Bank Al-Maghrib and the Professional Grouping of Banks in Morocco for entrepreneurship financing.

The second agreement is related to the coordination of entrepreneurship support actions at the regional level while the third agreement is a partnership agreement between Crédit Agricole du Maroc and Al Barid Bank relating to the financial inclusion of rural populations.

Morocco’s Minister for Economy said that the fund, will mainly benefit young project holders and small and medium-sized enterprises to enable them to have access to financing.

The fund also seeks to promote economic and professional integration of workers in the informal sector.

“This is a new incentive and an integrated framework, based on guarantee, financing, private equity and technical assistance mechanisms, set up for the benefit of very small, small and medium-sized companies, young project holders and young innovative companies and self-entrepreneurs,” noted the Economy Minister.

In addition to financing enterprises, the program  is set to contribute approximately 27,000 new jobs and support 13,500 additional companies annually.

The government will also set up commissions at the regional level to coordinate and implement measures relating to entrepreneurial support.