The International Finance Corporation (IFC) is preparing to strengthen its partnership with Al Amana Microfinance. A loan contract of 8 million dollars is in the process of being approved in order to support Al Amana in its financing strategy for the revival of the sector, in favor of project promoters, self-entrepreneurs and small businesses. It is the largest loan in the history of the IFC-Al Amana partnership.
The International Finance Corporation (IFC), which plans to invest $500 million in Morocco in 2022, is preparing to approve its first financing in the country. The microcredit sector is on the next list. Indeed, the IFC and Al Amana Microfinance have agreed to join forces again in favor of the revival of micro and small enterprises (TPE) and the financial inclusion of populations excluded from traditional financing systems. Both parties are in the final stages of negotiations for an $8 million senior loan deal. It is the largest loan in the history of the IFC-Al Amana partnership. The IFC, which is the arm of the World Bank for the private sector, must approve this loan next March. This new partnership aims to support Al Amana in its strategy of financing income-generating activities, by increasing its lending capacity to project promoters, self-entrepreneurs and small businesses that have been negatively affected by the Covid-19 crisis.
The aim is to contribute to the recovery of the sector, create jobs and stimulate growth. Particular attention will be given to women and to the development of income-generating activities in rural areas. IFC, a long-time partner Al Amana is a long-time partner of IFC. Since 2007, the total amount of IFC financing in support of the institution amounts to more than 10 million dollars (approximately 100 million DH), out of a total of more than 75 million dollars granted for the benefit of microfinance institutions in Morocco at the end of 2020. IFC also provided Al Amana with advisory services and supported it in implementing international best practices to improve risk management and strengthen its governance. Al Amana was founded in February 1997 and approved as a microcredit association by the Ministry of Finance in March 2000.
For several years, Al Amana has maintained its leading position in microfinance in Morocco. In the sector, it accounts for 37% of active customers, 34% in overall gross outstandings, 33% in terms of number of branches and 67% of mobile counters (figures at the end of 2020). At the end of August 2021, Al Amana Microfinance had outstanding loans of 2.71 billion DH, for a portfolio exceeding 335,000 active loans, including more than 160,000 in rural areas, and 139,000 loans for women. Al Amana Microfinance deploys its services through a distribution network of 634 branches, including 302 in rural areas, and 70 mobile counters serving isolated rural areas. In terms of jobs, the institution has (at the end of August 2021) a total workforce of 2,419 people. Equity capital amounts to 1.47 billion dirhams for outstanding debts of 1 billion.