The International Finance Corporation (IFC), a long-time partner of Moroccan microfinance institutions, is granting an additional $23 million to revive the sector. These are two loans: the first of $8 million was signed at the end of June 2022 with Al Amana Microfinance; the second of 15 million dollars was also approved last month in favor of the Arrawaj Foundation.
The International Finance Corporation (IFC) is investing an additional $23 million in Moroccan microfinance institutions (MFIs). These are two loans approved for Al Amana Microfinance and the Arrawaj Foundation. The first received funding of $8 million. The related contract was signed on June 27 between the two parties. Concerning the Arrawaj Foundation, the loan amounts to 15 million dollars, granted in dirhams to the Moroccan institution. This loan, also approved in June, is in the process of being signed with the IFC, the arm of the World Bank for the private sector. These two loans are part of IFC’s new “Base of the Pyramid” program. An initiative launched in 2021 to encourage financial service providers to facilitate access to finance for VSEs, informal businesses and low-income households that have been hardest hit by the Covid-19 crisis. Under this program, IFC is mobilizing $400 million for bank and non-bank financial institutions globally that focus on micro, small, and medium enterprises.
The partnership with Al Amana Microfinance and the Arrawaj Foundation thus aims to support these two MFIs in their strategy to revive income-generating activities, by increasing their lending capacity to project leaders, self-entrepreneurs and small businesses. Particular attention will be given to women and to the development of income-generating activities in rural areas. Since 2006, IFC has invested approximately $80 million to benefit microfinance institutions in Morocco, with technical assistance programs to improve their governance and risk management to increase financial inclusion in the country. .
Al Amana, which is a long-time partner of IFC, is positioning itself as a leader in microfinance in Morocco. Al Amana closed the year 2021 with a portfolio exceeding 350,000 loans and 340,000 active customers for an outstanding amount of 2.55 billion DH, out of the overall financial volume recorded by the entire sector of 8.15 billion DH for the benefit of 840,333 clients. Al Amana has a network of approximately 650 branches, including 303 in rural areas, in addition to 81 mobile vehicles serving the most isolated areas, with a workforce of more than 2,400 employees. The Arrawaj Foundation is the third largest microfinance institution in the country. At the end of 2021, its outstanding amounted to 1.54 billion dirhams in favor of 142,000 active customers. Arrawaj also has 14 regional directorates, 211 agencies, 106 of which are established in rural areas, for a total workforce of 2,031 people.