The IFC reports that Morocco’s microfinance sector is strong and stable following a 2009 crisis, “primed for growth”:
The IFC, a member of the World Bank Group, conducted a study on the crisis that befell Morocco’s microfinance sector from 2009 to 2011 which showed that the Kingdom’s microfinance is “stable and primed for growth.”
“This study shows that Morocco’s microfinance market is stable and primed for growth,” said the IFC in the study adding that “the sector in Morocco is stronger today that it was before the crisis, but still hasn’t reached its full potential”.
The study recommends giving Moroccan companies more flexibility to help them “extend vital financial services to more low-income families”.
The study notes the existence of “several regulations still impede the growth of microfinance in Morocco, long seen as vital for creating jobs and driving growth in the North African country”.
In this regard, the IFC puts forward a set of recommendations including adopting legislation that would enable microfinance institutions to transform from NGOs into companies, adding that this would “allow them to raise equity and reach out to more entrepreneurs.
It also recommended that “microfinance organizations be able to accept deposits from clients, something they cannot do right now”. This, the IFC said, would “extend vital financial services to the 40 percent of Moroccans who don’t have traditional bank accounts”…[Original Story, Subscription Required]