Crowdfunding bill adopted by the House of Representatives at second reading : 10/02/2021

Crowdfunding bill adopted by the House of Representatives at second reading

The House of Representatives adopted, at second reading and unanimously, on Wednesday, February 10, 2021, draft law No. 15-18 on crowdfunding, in the presence of Mr. Mohamed BENCHAABOUN, Minister of Economy, Finance and Administration Reform.

Crowdfunding, known internationally as "Crowdfunding," is a method of financing projects by the public. It raises funds, usually small, from a wide audience, mainly to finance youth entrepreneurship and innovation. This new mode of financing operates through internet platforms allowing the direct and transparent linking of project owners and contributors. These activities take three forms of funding: loan, capital investment and gift.

The establishment of a legal framework, through Law No. 15-18 governing collaborative financing activities, is part of the efforts of the Public Authorities to strengthen the financial inclusion of young project owners, support for economic and social development and the channeling of collective savings towards new opportunities. This legal framework should help to mobilize new sources of funding for very small, small and medium-sized enterprises and young people with innovative projects. It should also allow potential donors to participate actively in the country's development projects through a simple, secure, and transparent financing mechanism.

This new legal framework establishes a complete regulatory system for collaborative financing activities. To this end, it includes in particular: the creation of the status of manager of collaborative financing platforms (CFP), the definition of the accreditation system for Collaborative Financing Companies (CFC), the definition of procedures and terms of creation and operation of the CFPs and the definition of the commitments and obligations of the CFC in terms of public information, publicity and reporting.