The European Bank for Reconstruction and Development (EBRD) will channel €100 million in credit lines for young entrepreneurs in Morocco through the local launch of its Youth in Business program., announced EBRD on Monday.
Over five years, six eligible partner financial institutions (PFIs) for on-lending to youth-led micro, small-and-medium-sized enterprises (MSMEs) will benefit from these credit lines, with the potential to receive up to 2% in results-based compensation (i.e. bonuses).
According to the market assessment conducted by the EBRD for the program, there is a strong untapped market potential: While 79 percent of young entrepreneurs mention financing as the key obstacle to growing their business, only 22 percent have used a loan and 52 percent plan to use a loan in the future
The Youth in Business program aims to strengthen young entrepreneurs’ access to skills development and financing opportunities, unlocking their full potential as drivers of inclusive market economies.
MSMEs that are privately owned or managed by entrepreneurs under the age of 35 will be eligible to receive tailored capacity-building and business consulting services, including one-to-one advisory projects, training in entrepreneurship, e-learning, and network-building activities.
The EBRD signed a €20 million loan to Credit Immobilier et Hotelier (CIH Bank). This was the first EBRD loan under the Youth in Business program in Morocco, for on-lending to MSMEs owned or managed by young entrepreneurs.
CIH Bank will benefit from a technical assistance package and incentives to develop a strategy dedicated to better serving youth-led firms. The package will also include a capacity-building component for youth-led MSMEs that will enable the delivery of one-to-one advisory projects, training in entrepreneurship, and digital mentoring.
Morocco, a founding member of the EBRD, has been the recipient of €4.3 billion in investments through 96 projects since the Bank began operating there in 2012.