The European Bank for Reconstruction and Development (EBRD) has announced a loan of up to €10 million to Al Rawaj Foundation, one of Morocco’s leading microfinance institutions. This financing, part of the EBRD’s “Youth in Business” program, is dedicated to supporting micro, small, and medium-sized enterprises (MSMEs) owned or managed by entrepreneurs under the age of 35.
Targeting the Youth Financing Gap
Youth-led businesses represent a significant opportunity to boost financial inclusion and drive economic growth in Morocco. However, this demographic faces a considerable financing gap that limits its potential, with estimates indicating that only 14% of Moroccan youth have a bank account. This loan aims to bridge that gap by providing essential capital to empower the next generation of entrepreneurs.
Special Focus on Earthquake-Affected Regions
The financing will place a special emphasis on regions impacted by the 2023 earthquake. To amplify this support, the loan includes a first-loss risk cover for sub-loans issued in these areas, encouraging investment directed at rebuilding and revitalizing local economies.
Capacity Building Alongside Financing
The support extends beyond capital, incorporating a comprehensive technical cooperation package. Al Rawaj Foundation will receive specialized training to enhance its capacity to serve young entrepreneurs effectively. In turn, the end-borrowers will gain access to training opportunities, with a focus on digital and non-financial services to help them scale their businesses.
About Al Rawaj Foundation
Founded in 1996 as FONDEP, Al Rawaj Foundation is the third-largest microfinance institution in Morocco. It manages total assets of nearly €200 million and holds a 19% market share in lending. Through its network of 256 branches and a team of 1,942 employees, the foundation serves approximately 120,000 clients across the country.
Source: Banker News
