Morocco: MFIs introduce new microcredit growth strategy
Morocco's MFIs are implementing a new growth strategy for the microfinance sector, aiming at increasing the volume of outstanding loans by 400 percent over a ten year period.Morocco's MFIs are implementing a new growth strategy for the microfinance sector, aiming at increasing the volume of outstanding loans by 400 percent over a ten year period.
The National Federation of Microcredit Associations (FNAM), which includes 13 industry players, announced on October 12 in Skhirate that several measures will be implemented to raise the volume of outstanding loans from five billion dirham currently to 25 billion dirham (€2.2 billion) in 2022, Jeune Afrique reports.
According to a report from the research center CGAP, few countries have a microfinance sector as strong and dynamic as Morocco, thanks to government support and the implementation of the microfinance act in 1999, whose aim was to provide a clear framework for the development of microfinance.
But the sector has experienced a period of crisis from 2007, as MFI's institutional capacities have been overwhelmed by unprecedented growth.
The new strategy will therefore aim at strengthening the MFI network by increasing the number of agencies from 1300 to 1970, in order to reach 3.2 million beneficiaries in 2022, while this number is 900,000 today.
The FNAM hopes to leverage 40 billion dirham (€ 36 billion) over ten years from national and international development finance institutions in order to fund this expansion.
The new strategy will also include tax incentives for microcredit associations and beneficiaries.