Lending to private, non-financial corporations in Morocco slowed significantly in September 2024, registering a 2% increase, down from 2.9% in August, according to a recent report from Morocco’s central bank, Bank Al-Maghrib (BAM).
The deceleration contrasts sharply with a robust 14.9% growth in loans to public, non-financial corporations during the same period.
Overall, however, lending to the non-financial sector increased in September, underpinned by a 1.1% rise in household loans, up 0.8% from the previous month.
Constrained access to financing remains a significant challenge for the growth of Morocco’s Small and Medium-Sized Enterprises (SMEs), which make up the majority of businesses in the country. Currently, 90% of Moroccan companies are classified as small, while 9% fall into the medium-sized category.
When seeking financing from banks and other financial institutions, Moroccan businesses often struggle to meet the stringent requirements for “extensive guarantees,” which frequently exceed their capacity.
Morocco’s Central Bank Governor, Abdellatif Jouahri, highlighted the problem in February 2022.
SMEs in Morocco also face the obstacle of being perceived by lenders as sub-prime clients, which results in higher fees for banking services, even during critical periods such as the COVID-19 crisis.