- EBRD and EU boost competitiveness of women-led businesses in Morocco, with extended support to earthquake-hit regions
- €10 million loan to Fondation Arrawaj to support women-led MSMEs
- EU technical cooperation package to provide capacity-building and business advice
The European Bank for Reconstruction and Development (EBRD) and the European Union (EU) are joining forces with Fondation Arrawaj de la Finance Inclusive to support women-led micro, small and medium-sized enterprises (MSMEs) in Morocco.
The Bank will provide a senior unsecured loan of up to MAD 110 million (€10 million) to Fondation Arrawaj under the EBRD’s Women in Business programme to support women-led MSMEs.
The EBRD funds will also provide extended support for women-led MSMEs located in the regions affected by the September 2023 earthquake.
The facility will be bolstered by a technical cooperation package funded by the EU. It will help deliver capacity-building and advisory services to women-led MSMEs to support their know-how and entrepreneurial skills development.
The investment is also supported by the European Fund for Sustainable Development Plus (EFSD+). Through its financial inclusion programme, the EFSD+ introduces new, innovative financial instruments to the southern and eastern Mediterranean region (Egypt, Jordan, Lebanon, Morocco, Tunisia and the West Bank and Gaza) and eastern Europe and the Caucasus (Armenia, Azerbaijan, Georgia, Moldova and Ukraine).
As part of the EBRD’s response to the Al Haouz earthquake, Fondation Arrawaj will also benefit from the Bank’s financial support, with a specific focus on women-led MSMEs in the affected regions. This is one of the first transactions under the Bank’s initial response package of up to €250 million for 2023 to 2025, announced in October 2023, to rebuild Morocco’s economy in the earthquake-hit regions.
It will allow the Bank to provide a quick response to the aftermath of the earthquake while remaining fully in line with its main objective to promote women’s entrepreneurship in Morocco, as women are among the populations most affected by the event.
Since it began operating in Morocco, the EBRD has been supporting women-led MSMEs, which remain an under-served segment. Only a limited share of women-owned and -led firms have access to banking loans. This facility will foster the economic inclusion of women, which remains low: only 21 per cent of women in Morocco participate in the labour force and only around 13 per cent of the country’s businesses are owned or led by women. This investment is the EBRD’s second partnership with Fondation Arrawaj. It will help Fondation Arrawaj improve its current business model and enhance practices to better engage with women-led MSMEs and meet their financial needs.
Founded in 1996 under the name “FONDEP”, Fondation Arrawaj is the third-largest microfinance bank in Morocco. As of June 2023, Fondation Arrawaj operates through 211 branches in 14 regions.
Morocco is a founding member of the EBRD and became a beneficiary of Bank resources in 2012. To date, the EBRD has invested €4.3 billion in the country through 96 projects.