Strategy of MEII
MEII’s objective is to increase access to finance for small and medium sized businesses (SMEs) in Morocco, and decreasing barriers to financial inclusion for over 90% of small businesses in Morocco.
SME’s in Morocco
The importance of SMEs to the Moroccan economy is clear. They are responsible for 90% of the country’s GDP, where about 92% of all companies are SMEs as of 2014. Traditionally a good proportion of these are “micro” businesses that employ less than four people, use personal savings for financing, and tend to offer limited value to the overall economy in terms of innovation, job creation or global competitiveness.
In Morocco, the access of SME to bank lending has been a hot issue for some time; In general, Moroccan banks are widely regarded as extremely conservative in the appraisal of loan applications. Collateral requirements are also considered to be excessively stringent, and the usefulness of the credit guarantee schemes managed by CCG (Caisse Centrale de Garantie) is sometimes called into question
As for credit penetration and access, the World Bank’s Doing Business Report 2013 ranked Morocco 104 out of 185 countries. It is higher than the regional average of 128.
Areas of Focus