On Monday January 27, 2020, Mr. Mohamed BENCHAABOUN, the Minister of Economy, Finance and Administration Reform, along with Bank al-Maghrib Governor, Mr. Abdelatif JOUAHRI and the President of the Professional Group of Banks of Morocco (GPBM), Mr. Othman BENJELLOUN, was received at the Royal Palace in Rabat, by His Majesty King Mohamed VI, may God assist him, on the occasion of the presentation ceremony of the " Integrated Program to Support and Finance Enterprises” and the signing of related agreements. During this royal audience, Mr. BENCHAABOUN presented His Majesty with documents relating to this program.
Speaking during a ceremony in the Throne Room, the Minister of Economy, Finance and Administration Reform mentioned that, following the royal speech at the opening of the current parliamentary session, on October 11, and in implementation of the Royal Guidelines with regard to facilitating access to financing for companies, several meetings between the Government, Bank Al-Maghrib and the banking sector were held, which led to the development of the "Integrated Program to Support and Finance Enterprises".
He also explained that this program focuses on three main parts; these are the financing of entrepreneurship, the coordination of support actions for entrepreneurship at the regional level and the financial inclusion of rural populations. He also noted that this program includes several measures intended to overcome the difficulties that hinder access to financing for young project leaders and very small and small enterprises.
During his speech, the Minister stated that, as part of this program, a special appropriations account called "Support Fund for the Financing of Entrepreneurship" was created under the 2020 finance law.
The $6 million fund, spanning over 3 years, is financed equally by the State and the banking sector. It was also indicated that this Fund, which mobilizes significant financial resources, will mainly benefit young project leaders and small and medium-sized enterprises in order to allow them access to financing, in addition to the support of companies active in the exports field, and will also promote economic and professional integration of workers in the informal sector.
In fact, this is a new initiative, based on guarantees, financing, private equity and technical assistance schemes, put in place for the benefit of very small, small and medium-sized companies, young project leaders and young innovative companies and self-employed entrepreneurs, in addition to the review and improvement of support for exporting companies, especially towards Africa, as expressed in the His Majesty the King's speech. Moreover, the Minister announced that his department will adopt, in collaboration with Bank Al-Maghrib and the banking sector, a more proactive approach, particularly in terms of simplifying procedures, facilitating guarantee conditions by eliminating personal guarantees, and reducing credit costs. This program will contribute each year to the creation of around 27,000 new jobs and to the support of 13,500 additional companies.
Furthermore, and in order to ensure full success of this program, it has been indicated that commissions will be set up at the regional level to coordinate and monitor the implementation of measures relating to entrepreneurial support. As mentioned, the Ministry of Economy, Finance and Administration Reform will work with Bank Al-Maghrib to accelerate the implementation of the national strategy for financial integration.
He also stated that the parties concerned will initially work to strengthen their activities in rural areas. Lastly, Mr. BENCHAABOUN concluded his speech by announcing that the Ministry of Economy, Finance and Administration Reform will, in coordination with Bank Al Maghrib, ensure the monitoring of the implementation of this program, through the preparation of periodic reports which will be submitted to His Majesty.
It should be noted that during this ceremony presided over by HM King Mohammed VI, the Minister of Economy, Finance and the Administration Reform was among the Ministers and the signatories of three agreements:
The first is an agreement between the Ministry of Economy, Finance and Administration Reform, Bank Al-Maghrib and the Professional Group of Banks of Morocco for the financing of entrepreneurship;
The second agreement relates to the coordination of support actions for entrepreneurship at the regional level;
- The third relates to the partnership between Crédit Agricole du Maroc and Al Barid Bank relating to the financial inclusion of rural populations.