IFC, Al Amana boost access to finance for small businesses in Morocco
IFC, a member of the World Bank Group, is strengthening its partnership with Al Amana, Morocco’s largest microfinance institution, to increase funding for micro- and small-scale entrepreneurs, enabling their businesses to grow, create jobs, and spur growth.
With this extended partnership, IFC is providing a comprehensive advisory services package, to support the institution’s digital transformation, and a landmark local currency loan of 20 million Moroccan dirhams. In Morocco, as in many other developing markets, micro and small businesses often struggle to obtain the financing they need.
IFC’s new initiatives will enable Al Amana to increase access to finance for such businesses, develop the finance ecosystem, and boost growth. With a market share of 40 percent, Al Amana is Morocco’s largest microfinance institution (MFI) and one of the largest in the Middle East and North Africa.
“By providing this loan in local currency, IFC is supporting our strategy to accelerate our reach to those most in need and helping us integrate underserved segments of the population into the formal economy,” said Youssef Bencheqroun, CEO of Al Amana.
Al Amana has been a long-term IFC partner. Since 2007, the total amount IFC invested to support the institution has reached about 100 million dirhams ($10 million). Through advisory services, IFC has also supported Al Amana in its efforts to align with international best practices in risk management and governance.
“Local currency financing is a crucial part of sustainable private sector investment and especially important for small businesses,” said Xavier Reille, IFC Country Manager for the Maghreb region. “Supporting micro and small businesses is a priority for us as they help create jobs, reduce poverty, and drive broader economic growth.”
Since 2006, IFC has invested $75 million and implemented a number of wide-ranging advisory programs to boost financial inclusion in Morocco. That work has helped microfinance institutions improve their governance and risk management and supported the development of new products and services.