The World Bank’s Board of Directors has just approved a third financing of $450 million for development policy in Morocco to advance financial and digital inclusion, in addition to the two previous financings.
The project finance channel has supported the Moroccan government in implementing reforms to advance financial inclusion, digital entrepreneurship, and access to digital infrastructure and services for individuals and institutions.
This round of funding has had an impact by enabling Morocco to significantly push the frontiers of financial inclusion and digital, as 44% of Moroccans now have bank accounts, up from 29% in 2017, and 30% use digital payments, up from 17% in 2017, according to the Global Financial Inclusion Index Survey.
The digital payment infrastructure has grown, with 31% of rural areas now covered by mobile payment networks and 19 mobile payment service providers in operation.
The value of digital payments has also increased significantly, reaching two billion Moroccan dirhams (approximately $195 million) in 2021, laying the groundwork for reforming social protection programs through digital cash transfers.
Encourage private sector-led inclusion
This series enabled the development of microinsurance and the register of in-kind guarantees and guarantees to support microcredit to small and medium enterprises. The various measures have directly supported Moroccan women’s ability to access finance and economic empowerment. For example, women’s participation on the boards of listed companies increased from 14.9% in 2019 to around 20% at the end of 2022.
Jesko HenschelRegional Director of the Maghreb and Malta Department of the World Bank, said: “This third financing is in line with the recommendations contained in the new development model, which underlines the need for a quantum leap to encourage inclusion led by the sector. private sector to improve the level of public services and reduce social inequalities.
The Moroccan government has started to implement these recommendations by digitizing social protection programs, supporting financing through equity investments and non-banking instruments for innovative companies, and digitizing public services to improve capacity. of the PME to access public markets.
This third financing supports the reforms initiated by Morocco to promote financial inclusion by expanding access to a variety of financial services for the rural population, women and young people, and digital entrepreneurship by diversifying financial instruments at the layout of start-ups.
It should be noted that the World Bank Group views financial and digital inclusion as key enablers for reducing extreme poverty and boosting shared prosperity.