The World Bank’s Board of Directors is due to approve additional financing of $400 million in support of financial and digital inclusion in Morocco next March. Thus, in five years (2019-2023), the Bretton Woods institution will have mobilized $2.05 billion to support government reforms in this area: $700 million signed in 2019 and $1.35 billion ( in three tranches) under the new program started in 2020.
It’s confirmed. Following negotiations between the government and the World Bank, a additional funding will be approved next March to support financial and digital inclusion reforms in Morocco. The amount to be injected is $400 million. Last installment of a series of three operations, the Financing in support of development policies (DPF) in favor of thefinancial and digital inclusion builds on the reforms already undertaken by the authorities in this area for the benefit of households and businesses, including start-ups and young entrepreneurs.
Remember that this new program started in 2020 with a first loan of $500 million. In June 2021, a second loan of $450 million was approved by the Bretton Woods institution for the same program. Thus, with this third tranche to be approved in March, the envelope dedicated to this program will be increased to 1.35 billion dollars. It should be noted that the “Financing in support of development policies in favor of digital and financial inclusion”, programmed in three tranches, is a continuation of that signed in 2019 (Financing in support of development policies in favor of financial inclusion and the digital economy) which received $700 million from the Bretton Woods institution, in particular to contribute to the implementation of the national financial inclusion strategy. In five years (2019-2023), the World Bank has mobilized $2.05 billion to support reforms in favor of financial and digital inclusion in Morocco.
Rural populations, VSEs, women and young people, the main targets
The National Financial Inclusion Strategy was launched in 2019 by the government jointly with Bank AI-Maghrib and with the support of all stakeholders in the public and private sectors. The objective of this strategy is to make financial inclusion a catalyst for the economic inclusion of the targeted categories in particular, rural populations, VSEs, women and young people. It relies on four main levers to achieve its objectives:
- Accelerating the development of alternative financing models adapted to the specificities of the target population
- Strengthening the role of “classic” financing models in promoting financial inclusion
- Strengthening tools to better understand the risk of excluded populations
- The creation of conditions for greater use of financial products. The program initiated since 2019 has also integrated a “digital” component to support the digital transformation initiated by the Kingdom.
The new loan thus consolidates and sustains the momentum of the reforms initiated by the government. It is part of a medium-term vision articulated around two pillars dealing, for the first, with financial inclusion, digital financial services and the resilience of households and businesses and, for the second, with digital , innovative companies and digital entrepreneurship. These include, among others, reforms relating to microfinance, insurance, access to bank credit, and innovative financing tools. It is also about the digitization of the social protection system, the acceleration of secure mobile and electronic payments. The program will also work on improving broadband connectivity in urban and rural areas, the economic participation of young people and women as well as the facilitation of access by VSMEs to financing and public contracts.
For the Ministry of Finance (which is piloting the project in partnership with the Ministry of Digital Transition, Bank Al-Maghrib and the National Telecommunications Regulatory Agency – ANRT), this reform dynamic is part of and in relationship with the economic recovery plan.