The European Bank for Reconstruction and Development (EBRD) has allocated a €20 million loan to support young entrepreneurs in Morocco. In a press release, the EBRD announced that this loan will benefit the local microlender Al Amana Microfinance. This financing package is provided through the EBRD's Youth in Business programme to facilitate on-lending to Moroccan private micro, small, and medium-sized enterprises (MSMEs) owned or led by entrepreneurs under 35 years of age. These MSMEs are located in regions impacted by the Al Haouz earthquake of 2023. «MSMEs owned or led by young entrepreneurs represent a unique market opportunity for the Moroccan financial sector and a critical vehicle for increasing financial inclusion, yet they continue to face financing gaps that constrain their economic opportunities», the EBRD stated. The loan facility will be accompanied by a comprehensive technical cooperation package, according to the EBRD. Al Amana will receive capacity-building training to better meet the financial needs of eligible MSMEs, as well as performance-based payments funded by the EBRD's Southern and Eastern Mediterranean Multi-Donor Account. The package will also include training opportunities for Al Amana's sub-borrowers, funded by the EBRD's Small Business Impact Fund. This loan is supported by the European Union (EU) through its European Fund for Sustainable Development Plus (EFSD+). Founded in 1997, Al Amana Microfinance has established itself as a key player in Morocco's microfinance sector. The EBRD's involvement in Morocco began when the country became an operational partner in 2012. Since then, the bank has invested nearly €5.2 billion across 110 projects in Morocco.
