Ajas

Asian Journal of Applied Sciences (ISSN: 2321 089)
Volume 04 Issue 03, June 2016
Studies and Research on Microfinance Sector in Morocco: An

Overview
Ghita Benouna1* and Mohamed Tkiouat 2
1
PhD student in the Laboratory of Research in Applied MathematicsEcole Mohammadia dIngnieurs-Mohammed V University (Rabat, Morocco)
2
Professor of Industrial Economics and Game theory
Ecole Mohammadia dIngnieurs-Mohammed V University (Rabat, Morocco)
Corresponding authors email: bennouna.ghita [AT] gmail.com
_________________________________________________________________________________
ABSTRACT The Microfinance sector in Morocco started during the 90s to meet the needs of a large population
excluded from the banking system and which require financial support to improve its situation and its living
conditions. This sector has grown considerably in a few years after the creation of the first Moroccan microfinance
associations (AMC), thats why several studies and research has been done in order to evaluate this sector and its
sustainability from one side and to identify and measure the contribution of the microfinance sector to the
development of its customers from another side. This paper discusses the current situation of the microfinance in
Morocco while evaluating its contribution to the development of the activities financed by this sector also it includes
many of the studies and research which has been conducted to analyze this sector.
Keywords Microfinance, Moroccan micro-Credit Association, Micro-Finance Institution, Activity, low income.
_________________________________________________________________________________
1. INTRODUCTION
Microfinance is practiced by institutions with varied status to meet the different needs of poor people in order to
handle with the problems of economic growth, of development, struggle against poverty and of job creation that
represent the major challenges for our country.
In this specific context, access to financial services, including credit is considered as one of the important needs to
satisfy. It is for this reason that the subsequent promotion of income generating activities and productive employment for
all these decades has relied in a large part on broadening access to financial services for low-income populations. In this
perspective, the microfinance sector in Morocco was launched around twenty years ago.
Today, it almost touches a million beneficiaries, with a growth in net progress, in spite of the crisis of maturity that it
knew in 2008 due to uncontrolled growth resulting in loose credit policies, outdated information and management
systems, deficiencies in internal control and weak governance. Factors known thanks to the various studies and research
led to analyze this sector and which will be presented in this paper. This crisis was overcame a few years later thanks to
the dynamism of the sector through the realization of restructuring projects and capacity building making Morocco the
first microfinance market in the MENA region (Middle East & North Africa).
However, regardless of the great achievements of the National Microfinance sector in the last ten years, in terms of
fighting against poverty and social exclusion, it is still facing some significant challenges to reduce poverty and
precariousness in Morocco and especially in the remotest regions of the country.
This paper discusses the current situation of microfinance in Morocco. Organized as follows: Section two starts with
the state of development of the microfinance sector, a focus on the case of Morocco is the subject of the third section, this
part provides an overview of the history and development of the Microfinance sector in Morocco, also describes the
current legal and regulatory environment and the trend of this sector. Besides, it outlines the principal IMFs in Morocco
and the most activities financed by this microfinance sector. Part IV concludes this summary paper with the studies and
research realized on the microfinance sector in Morocco.
2. STATE OF DEVELOPMENT OF THE MICROFINANCE SECTOR

2.1. The Microfinance Sector
Like everyone, the poor excluded from the banking system need a range of financial services that they are
appropriate, flexible and affordable. Depending on the circumstances, MicroFinance offers a variety of products namely
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microcredit allowing them to create or develop their micro-projects generating income also services of savings, insurance
and money transfer services.
Microfinance allows therefore poor households to move from a logic of daily survival to future planning and invest
for food, home, health and better education.
2.2. Brief history of MicroFinance

The existence of microfinance dates back several millennia in various forms including informal mechanisms of
lending and borrowing that existed in Asia.
In 1849, FW Raiffeisen created in Switzerland the first cooperative savings and credit society. In France, the Pereire
brothers were the first to create Crdit Mutuel Companies. Later in the 1960s and 1970s other public credit banks
attempts are emerging in developing countries.
However, it is considered that 'modern' microfinance emerged in the mid-1970s in Asia and Latin America. The
priority is given to the example of Bangladesh and the Grameen Bank founded in 1978 by Dr. Muhammad Yunus,
Professor of Economics at the University of Chittagong, considered "the Banker of the poor", he received the Nobel
Peace Prize in 2006.
Dr. Yunus argued in his book Towards a world without poverty" that the eradication of poverty in the world is a
matter of will than of financial resources, and the charity, for its part, does not solve anything. It only perpetuates poverty
by removing any initiatives to the poor. This shows that Muhammad Yunus had already incorporated the concept of
sustainable social development in 1976: the improvement of the condition of the poor and development cannot be that
endogenous, provided that is given to the poor "an emergency door" with their availability.
3. THE STATE OF THE MICROFINANCE SECTOR IN MOROCCO

3.1. An overview of the history and development of the sector
Microcredit sector in Morocco is relatively young. The first micro-loan programs intended to finance economic
activities of people with low incomes started in the years 1992-1994 following the conference organized by the National
School for Agriculture of Meknes on desertification in Morocco. Convinced by the idea, some participants of the
Catholic Relief Service (CRS), in partnership with the AMSED (The Moroccan association of solidarity and
development) decided to make the experience in rural areas in the Middle Atlas near Khenifra in collaboration with the
local association Oued Srou. A first loan was granted to a group of eight women. Some attempts have confirmed the
effectiveness of the system, very suitable to the Moroccan solidarity tradition.
Microcredit Associations have been created later, inspired by the model of the Grameen Bank. We include the
creation of the Zakoura Foundation in 1995, Al Karama and FONDEP in 1996, AL Amana in 1997 and in 1998 the
creation of the Bank Popular Foundation for Microcredit (FBPMC) and Ismailia.
To support and assist technically these MFIs, the Government of Morocco and UNDP (the United Nations
Development Program) have decided to set up the Microstart program whose objective was to improve the access of
micro-entrepreneurs with low-income to financial services, to urge them to improve their income and their social level
and to contribute to the promotion of employment.
In 2000, the state realizes the impact of the activities of microfinance associations on the reduction of poverty, and
decides, through the Hassan II Fund to subsidize the sector to the tune of 100 million dirhams ( 10 million), enabling
associations to increase the number of beneficiaries and the amount of loans.
In 2001, FNAM (National Federation of Microcredit Associations) was established to contribute to the reduction of
poverty in Morocco and the culmination of human development goals. Its mission is the development and promotion of
tools, strategies and initiatives to strengthen its role as a financial actor and to enhance its capacity and that of its
members (AMC) in order to maintain and ensure the sustainability of the national microcredit sector.
In the years 2008 - 2009, the Morocco microfinance sector has experienced a debt crisis consequence of uncontrolled
accelerated growth. The PAR (Portfolio at risk) at 30 days increased from 0.42% in 2003 to 1.9% in 2007 and 10% in
2009. This crisis has bankrupted the second AMC of the time -Foundation Zakoura- which has absorbed by the Public
Foundation Bank Popular Attawfiq. The sector stakeholders have worked together to overcome the crisis: recovery
effort, improved credit processes, information exchange to limit the cross-indebtedness, strengthened supervision.
Thanks to these efforts, market indicators are positive again since 2012, making Morocco the first microfinance market in
the MENA region.
Currently, the microfinance sector includes 13 AMCs, supervised by the Central Bank, Bank Al-Maghrib and
represented by the FNAM (The National Federation of association of microcredit). Three of the four AMCs with national
vocation- Al Amana, Fondation Banque Populaire Attawfiq and Albaraka (FONDEP) concentrate 90% of market
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shares .the offer of product is focused on microcredit, with good coverage in rural areas and an expansion to housing and
insurance products.
The AMC with regional vocation benefits from a project of strengthening and from standardization implemented
within the FNAM and supported by the Center Mohammed VI to Support the Microfinance Solidarity (CM6). The CM6
is a center of training, information and support to the development of microfinance. It developed in 2010 a public policy
support to microfinance, predicting that in the year 2020, the sector would reach 3.2 million beneficiaries, against the
893,977 currently served.
It is also recalled that the sector has also benefited from the support of the international community of funders
(USAID, AFD, UNDP AFESD, Grameen Jamil ..). It is necessary to lift however that the commitment of the Moroccan
financial sector (commercial banks and Funds JAIDA) alongside actors remains largest, covering 80% of the sector's
funding needs. Noted that this level of commitment is specific to the Moroccan microcredit sector in the MENA region.
The chart below (Figure1) illustrate the phases of creation and development of the microfinance sector in Morocco
(since 1993 until 2012):
Figure 1: The history and the development of the sector
3.2. Regulation and Supervision

The regulation of the microfinance sector in Morocco consist of a founding text, Law No. 18-97 of 1999 relating to
microcredit, amended in 2004 and 2012. This law defines the microcredit as being "any credit whose purpose is to enable
low-income people to create or develop their own activity of production or service to ensure their economic integration."
So far, microfinance must be exercised within the legal framework of the association. Nevertheless, the amendment
of 2012 opens to the AMC the possibility of being transformed into limited companies and therefore into credit
institutions, and to expand the range of services provided while excluding the possibility of capturing the savings of
clients. However, the decrees for the implementation of this amendment have so far not been published.
As the loan ceiling, the decree fixes it at 50,000 DH to individuals. It may provide several levels of amount depending
on the objectives of each association of microcredit and its financial resources.
Interest rates are not regulated for microfinance activity. They are however for banking activities, which means that
when an AMC will become a credit institution, it shall submit to the regulation of rates and thus probably lower its rates.
The supervision by the Central Bank has been strengthened since the 2008 crisis, allowing a proper application of the
regulation.
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3.3. Trend of the microfinance sector in Morocco at the end of June 2015
Evolution of the number of active customers
Evolution of the outstanding in (Thousands of DHs)
1 300 000
6 000 000
1 200 000
5 500 000
1 100 000
1 000 000
5 000 000
900 000
800 000
4 500 000
March
2009
2010
June
2011
Sept
2012
2013
Dec
2014
March
2015
2009
Evolution of the balance sheet in (Thousands of DHs)
2011
Sept
2012
2013
Dec
2014
2015
Evolution of the PAR >30D in (Thousands of DHs)
7 000 000
550 000
6 500 000
6 000 000
450 000
5 500 000
350 000
5 000 000
250 000
4 500 000
150 000
4 000 000
March
2009
2010
June
2010
June
2011
Sept
2012
2013
March
Dec
2014
2015
2009
2010
June
2011
Sept
2012
2013
Dec
2014
2015
-The year 2009 recorded the highest active number of customers historically (over a million customers); this figure
declined in 2010 and remained stable thereafter around 800 thousand customers. At the end of June 2015, this number
increased slightly by 2% vs. March 2015 reaching 893,977 clients.
-Outstanding loans showed a hiccup pattern since late 2009, it recorded a sharp drop in December 2009, then
rebounded from the last half of 2014 to reach 5.9 million in June 2015 Dhs (that is already + 2% Vs. March 2015).
-The rate of the Portfolio At Risk> 30D also evolved uneven, it reached a peak of 10.51% in September 2009 and
then declined in June 2015 to reach a rate of 4.22%.
-The Total balance sheet has decreased since June 2009 to stabilize at around 5.5Millions Dhs. Moreover, it has
experienced significant growth from the second half of 2014 reaching 6.6Millions of Dhs in late June 2015.
3.4. The principal imfs

The microfinance sector includes 13 AMCs that are presented in the Figure 2 below:
Figure 2: Moroccan Microfinance Associations

Three of these AMCs namely Al AMANA, ALBARAKA & ATTAWFIQ concentrate 90% of the market shares. The
chart below (figure 3) details the shares of each AMCs.
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Figure 3: Distribution of the Overall credit outstanding by AMCs

IMFs in Morocco are located in all regions of the country in balanced way in order to meet the main mission of
microfinance, which is the eradication of poverty. The figure 4 below present the distribution of IMFs by region
according to statistics of March 2015.
Figure 4: Distribution of IMFs by region
3.5. Activities funded by microfinance in Morocco

3.5.1. Overview
The microfinance sector in Morocco allows financing income-generating micro-projects in trade, agriculture, crafts,
services and other activities.
The distribution of these activities has been the subject of an analysis realized by the CM6 in 2015. Below (Figure 5)
a summary diagram of this ventilation.
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7%
Trade
17%
Handicrafts and Crafts
43%
Services
11%
Agriculture & Breeding
22%
Others
Figure 5: Distribution of activities financed by the Microfinance in Morocco

Trade represents 43% of the AMCs portfolio of active customers, followed by handicrafts and crafts with 22%; two
activities that generate a cash flow on a daily basis. The agriculture and the breeding follow with 17%.
A distribution by activity and by gender is important to identify at best the most financed sectors. The graph below
(figure 6) shows this ventilation.
58%
67%
42%
TRADE
33%
HANDICRAFTS
AND CRAFTS
52%
55%
48%
45%
SERVICES
AGRICULTURE
& BREEDING
Male
45%
55%
OTHERS
56%
44%
ALL
Female
Figure 6: Distribution by gender of activities financed by microfinance in Morocco

Gender parity is approximate depending on the type of activity. Trade and crafts appropriate the highest rate of
women, at 58% and 67%. It is necessary to retain that women represent 56% of the AMCs active customers.
Moreover, outstanding loans shows the predominance of Trade and Handicrafts which are the most-financed
microcredit activities. As for agriculture and breeding, they pass to the fourth place in terms of stocks with 11%, against
3rd place in terms of active customers with 17% of the total. Below an illustrative diagram (figure 7):
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9%
Trade
11%
47%
12%
Handicrafts and Crafts

Services
21%
Agriculture & Breeding

Others
Figure 7: Distribution of the stock of activities financed by the microfinance in Morocco
3.5.2. Profitability of the sectors of activity:

To identify the most profitable activities, it seems appropriate to determine the main jobs in terms of outstanding
relating to each activity; for this, CMS made in 2013 a diagnosis whose results are presented below (Table1).
Table1: ventilation of the outstanding loans by sector of activity
The Trade of clothes and diverse
articles come at the top of Trade
jobs with 43% against 10% only for
grocers and 13% for selling cattles,
fruits and vegetables.
Figure 8: Outstanding of the main jobs of Trade

Sewing and embroidery represent
56.98% of the Craft jobs and benefit
from an important part of the
microcredit Funds.
Figure 9: Outstanding of the main Handicrafts and crafts jobs
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The activity of masonry represents
23.65% of Services activities
outstanding loans, the hairdressers
come after with 9.29%.
Figure 10: Outstanding of the main Service activities

The breeding of cattle and sheep is
carving the largest part of the
outstanding loans with 83%, against
17% for the rest.
Figure 11: Outstanding of the main agriculture & breeding jobs

In order to measure the level of financial performance of costumers, their personal and professional development and
the well being of their household, all IMFs has to realize a social impact study
In this sense, Albaraka association realized a study at the end of 2014 in order to analyze the social performance of its
customers.It emerges the following elements:
Three key sectors in which the customers have invested their last loan contracted in the AMC:
1. Trade, retail sales and trading: 57%
2. Manufacturing: 15%
3. Services: 12%
4. Agriculture : 11%
The activities constituting the first source of income for those customers are :
1. Trade : 52.8%
2. Sewing and embroidery: 11.9%
3. Agriculture & breeding : 11.6%
After obtaining a micro-credit from the AMC, increased micro-enterprise profits is reflected in the increase of the
micro-entrepreneur incomes. The number of very old customers claiming to have experienced an increase in their income
is higher than 42% compared with the number of new customers.
The results of the study show that the profits of the very old customers of micro-enterprises are higher by 104%
compared with those of the new customers. Indeed, sales of the old customers are 17% higher on average than those of
new customers, while sales of very old customers are higher on average of 42% to the sales of new customers. Seniority
allows to increase the monthly profit of 60% during the first two years and to double this profit after two years. It is
therefore concluded that the AMC clearly contributes to the increase of the profits of its customers.
Moreover, the perception of the changes due to the increase in household income by the customers appears positive:
in the eyes of the customers, total household income increased considerably for 3.2% of very old customers, and
improved for 26% of old customers. Similarly, 20% of the new customers notice a positive change in their income.
This improvement of income thanks to microcredit contributes to the increase of the micro-entrepreneur heritage:
more the customer is ancient and more he acquires goods. Regarding the conditions of housing, the improvement is more
observed among older customers, with 60% of customers for more than 24 months making changes in their home.
Nevertheless, more than 47% of all customers has made improvements in their homes.
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It was noted that the average length of hungry period among new customers is 6.7 months against 3.9 months
among customers for over than 24 months. Thus, being a customer of the AMC for more than 24 months has reduced the
average of the length of hungry period for about three months.
4. STUDIES AND RESEARCH ON MICROFINANCE IN MOROCCO

Since the launch of microfinance in Morocco, several AMCs as well as various agencies have launched studies on the
sector (Table2) to know its principles, its trends and the necessary steps to ensure its sustainability. Furthermore, several
research were directed to the microfinance sector in Morocco (Table3).
Table2: Studies On microfinance in Morocco
Title of the Study
Realized by
Year of
realization
Contents
Conclusion
Significant increase in the income of
questioned customers;
-The customers of the program seem to be
significantly more involved in the
management of the family budget,
potentially due to their growing and
significant financial contribution;
-The Customers appear better protected
against the shortage of raw materials,
compared with the not-customers. It is the
same with regard to "external events in their
business activity." They are, however, like
any entrepreneur, subject to economic
fluctuations affecting demand supporting
their trade.
-The participation in ZMC program also
promotes diversification of activities.
-The proportion of customers who increased
their educational spending remains 10
points higher on average than noncustomers.
The impact of the loan is manifested
through:
- Changes on the micro-enterprises:
extension of the micro-enterprises and
better supply management;
-The increase of the individual income;
-At The household level, the increase in
expenditures for educating children for
men;
-At The level of the community, no
negative effects in terms of involuntary
unemployment so that on the work and the
schooling for children of 10 years and less.
However, the impact is negative for
children from 11 to 18 years old.
-The Sector mainly targets women;
-Microcredit has a significant positive
impact on the level of profits, investment
and market access; Also on consumer
spending appropriate to the customers and
overall spending of the household;
-The Actual customers acquired very
slightly more assets than the recent
customers;
-The Duration of participation has a positive
impact on savings constitution;
-The Microcredit has a positive effect on the
contribution to the household budget,
according to customers.
-Besides, financial conditions applied by the
AMC are not adapted to the needs of the
customers (mainly in terms of amount,
Studies of the impact of

Zakoura Micro-Credit
(ZMC) Program
Fouzi Mourji through the

MicroStart program (the
United Nations
Development Program)
2000
Analyze the impact of customers

participation in the program
compared to their households and
their activities.
Evaluation of the
contribution of Al Amana
to the development of its
customers
Al Amana associationDepartment of Research

& Development
2004
This study is based on four

surveys:
-Survey of Impact and use of
loans and profits of microentrepreneurs;
-Survey On outbound customers;
-Survey On the autonomy of
women;
-Survey On customer satisfaction.
Evaluation of the impact

of microfinance in
Morocco
IKM (Impact,
knowledge, Market)PlaNet Finance Morocco
sponsored by FNAM and
fully financed by the
directors of PlaNet
Finance Morocco (Either
BMCE Bank, CDG and
the French deposit and
consignment fund)
2005
This study had for main objective

to give indicators on the
customers of all associations and
regions, to assess the impact of
microcredit to the levels of the
enterprise, the household and at
the individual level. This study
allowed also evaluating the AMC
market.
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Evolution of the
microcredit sector in
Morocco
The Direction of
Treasury and Outside
Finances, Ministry of
Economy & Finance
2008
This study describes the trend of

microcredit in Morocco in 2008
and presents perspectives of
evolution of the sector
Development, crisis and

recovery of the
microfinance sector in
Morocco
CGAP
(Consultative
Group to Assist the Poor,
it is a consortium of 28
public
and
private
agencies of development
working together to
spread the access of the
poor people to financial
services)
2009
This study puts the point on the

main reasons behind the crisis of
the microfinance sector in
Morocco while dealing with the
important role of government to
overcome this crisis.
Sectorial study: microfinance one year after the

announcement of the
turbulences
JAIDA:AMCs financing
fund
2009
This sectorial study focus on the

recent
evolutions
of
the
Microfinance sector in the
international and the situation of
the microcredit sector in Morocco
in 2009. This study is divided
into three main components
namely: The international recent
evolutions; the situation of
Morocco one year after the
announcement of the turbulences
and The perception of the
beneficiaries of microcredit and
AMCs.
Survey on the evaluation

of needs in financial and
non- financial products
towards the AMC
beneficiaries
The Mohammed VI
2011
This study aims to assess the

needs
of
beneficiaries
of
microcredit in terms of financial
and
non-financial
needs;
Matching supply and demand for
microcredit products; Identify the
main activities financed by the
Moroccan microfinance sector;
Determine the financial needs
promoting or hindering the
development opportunities of the
foundation for solidaritybased microfinance.
maturity and type of guarantee) so leading

to their departure or to the phenomenon of
cross-indebtedness.
The microcredit sector in Morocco is an
emerging sector, which knows a very fast
development with an important potential
market. Now Micro-credit is one of the
instruments of development of social
economy through a participative and
integrated approach, which takes into
account the needs of the population and the
optimization of the available financial
resources.
The microfinance crisis finds its origins:
-In the MFIs themselves, their institutional
capacities exceeded by an exponential
growth, resulting in lax credit policies,
obsolete information and management
systems, deficiencies in internal control and
weak governance;
-Also The cross indebtedness which
constitutes an aggravating factor.
To improve this situation, the AMC have
implemented large-scale recovery plans
through change teams, strengthening
lending methodologies by the establishment
of a panel exchange of data on the default
risk of customers allowing to reduce the
cross-indebtedness.
The government in turn has contributed to
the improvement of the sector through the
implementation of the central of risks,
encouraging links MFI Banks to secure
liquidity and also by improving the
regulatory framework.
-Several Measures were adopted after the
crisis to stabilize the sector (recovery,
caution in granting new loans, coordination
between institutions, implementation of the
central risk (credit bureau)..);
-Microcredit has several utilities listed in
order of priority according to the study as
follows: resolution of the occasional cash
flow problems, the acquisition of consumer
goods, the creation or the development of
income generating activities.
-However, Bad practices are observed in
AMC: the Corruption of the credit officers,
the blank check taken as guarantee, the
disbursement period are very short, the
allocated time in the analysis of the file is
insufficient. And also with the beneficiaries
through the creation of fictitious groups
with for example two real beneficiaries in a
group of 4 people, deviation of consumer
loans, Cavalry between the crossed prices.
-The Trade and services dominate the
activities financed by microcredit. An
emergence is observed for agriculture and
breeding.
-The most dominant activity among women
is the textile and clothing trade.
-Like women, trade is the main activity for
men.
- New activities are little financed by the
sector.
-The activities development mainly depends
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micro-entrepreneurs; raise the
expectations and needs of
Beneficiaries regarding support
(technical assistance, training,
orientation, and others ..).
Trends of the
microfinance Sector in
Morocco during 20072011
The Mohammed VI
Investigate into profiling

of products and services
of the AMC
The Mohammed VI
2011
The analysis of the trends of

microfinance sector in Morocco
makes a zoom on the evolution
realized during the period of the
crisis in order to clarify the
situation of this sector. In
addition to an intra-sector
benchmark between three groups
of pairs, a second sectors
benchmark is also made with
similar cases on other continents
and in different contexts, to
confirm that the reasons for this
crisis are very endogenous to
IMFs.
2012
This study aims to:

-Identify
the
characteristics
received from products and
services;
-Measure
the
customer
satisfaction towards services
offered
-Diagnose (In strengths and
weaknesses)
segments
of
products and provide a strategic
observation.
-Identify and cross the offer to
the expressed needs.
-Categorize customers and give
priority actions by segment based
on the dimension of satisfaction
and perception of the products.
-Propose areas for improving the
sector.
foundation for solidaritybased microfinance
on funding.
-The Three-quarters of loans are group
loans.
-40% of customers surveyed admit to have
taken loans from several AMCs. 3/5 are
women.
-For Several customers, the loan amount,
duration, repayment frequency and the
pricing represents the main reasons of
inadequacy of the loan to their expectations.
-The Analysis of the most needed financial
products by the customers questioned
highlights: Micro insurance with 61%, 54%
for micro-savings, money transfer 33% and
26% for payment card.
-The Analysis showed that beneficiaries
need besides funding, to be trained, advised
and accompanied in the realization of their
projects.
-The Analysis of trends 2007-2011 confirms
the successful recovery policies followed by
AMCs, as well as the strength of the
Moroccan microfinance sector.
-The Crisis allowed the sector to continue to
realize its social mission with the strong
guarantee of implementation of best
practices. Thus, the AMC are now better
equipped to protect customers, improve
social performance, human resource
development and meeting the financial
needs for products and non-financial
services for micro-entrepreneurs.
-The Current trends show that the year 2012
will be the link between the period of the
crisis and a new era characterized by the
resumption of growth, the supply of new
products and the exploitation of new
technologies.
-Nevertheless, Future challenges of the
sector are coaching and supporting small
AMCs in the post-crisis period; Refinancing
the growth of large and medium AMCs; the
implementation of the strategic intelligence
and the observation of the sector
internationally to guard against possible
future crises; The adaptation of products to
customer needs and Participation in the
formalization of informal activities.
-The Group loan has an important place in
microcredit. The individual loan comes
second.
-The Loan is mainly intended for the
financing of the professional projects
(mainly trade, manufacturing, services and
agriculture), followed by financing housing
projects (improving housing conditions).
-The Customers benefits from the support
and monitoring of projects after the granting
of loans.
-The Majority of customers are satisfied to
have used microcredit. The reasons are
mainly: the availability of working capital
and investment and the development of the
activity; the improvement of the standard of
living; helpfulness, proximity and good
interpersonal skills of the field officers.
-The Changes desired by customers in
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-Update
the
National
Microfinance Mapping by other
indicators.
Evaluation of the impact

of microcredit in rural
area in Morocco: the case
of Al Amana institution
2012
The objective of the study is the

evaluation of the impact of Al
Amana microcredit offer on the
agricultural and non-agricultural
activities, on the household
incomes and assets, the level of
poverty and food safety as well as
the place of the women in the
household.
International Finance
Corporation (IFC) World
Bank Group In
collaboration with :
-The Danish
Development
Cooperation (DANIDA)
-The Department of
Foreign Affairs, Trade
and Development of
Canada (DFATD)
-The Ministry of
Finance of Japan, the
Swiss Cooperation
(SECO) and UKAid
Institution Albaraka
(FONDEP)
2014
This study reviewed the nature of

the crisis of the Moroccan
microfinance, this crisis mainly
due to the strong competition
between the AMC (Conquering a
large number of customers and
neglecting the staff and the
portfolio quality) what leads to a
crossed debt and therefore to a
debt repayment default.
2014
Estimate the impact of Albaraka

services on the customers at
several
levels
(financial
performances,
personal
and
professional development, well
being of the household, etc.)
The Mohammed VI
2015
The objective of this comparison

is to allow Morocco to benefit
from the experience of countries
having a well-structured and
effective microfinance sector,
notably the case of Peru, ranked
first, six consecutive years, in the
ranking of the microfinance by
Economist Intelligence Unit.
Without forgetting, naturally,
Bangladesh,
country
where
microcredit has emerged.
French
Agency
of
Development
partnership with
in
Al
Amana institution and

the Paris School of
Economics
Out of the crisis in the

Morocco: timely and
effective interventions
Study of the economic

and social impact of
microcredit
Benchmark
microfinance
Morocco /
Bangladesh
of
the
sector:
Peru /
microcredit programs mainly concern the

duration, the amounts and the ceilings of the
loan considered insufficient, the repayments
by direct debit, as well as the reduction of
implemented interest rate.
-The Improvement of the Professional and
personal situation thanks to the microcredit.
-The Borrowing rate is relatively low and
highly variable from one village to another;
-The offer of Microcredit has an impact on
the development of existing activities,
mainly concentrated in agriculture and
breeding. This development is translated by
a generation of agricultural income, a
diversification of owned livestock and an
increase of savings in kind in breeding;
-The offer of Microcredit has no impact on
the creation of new activities.
Thanks to the credit bureau (Central risk)set
up after the 2009 crisis and following the
intervention of government and other
providers of market infrastructure, the
AMCs were able to improve their behavior
with their customers and towards their staff
and were able also to ensure a repayment
rates in net improvement Vs the years of the
crisis.
Efforts are still needed to ensure the
sustainability of this sector.
-The Loan allows an increase in the micro

entrepreneur income.
-the seniority of the customer allows to
increase the monthly profit of 60% during
the first two years and to double this benefit
after two years.
-Increase the total household income for old
and new customers.
-Improvement of the housing conditions
after obtaining the loan at Albaraka.
-Reduction on average length of Hungry
period of about three months.
-Morocco, in comparison with other
markets, reacted quickly to the crisis,
through different actions, namely the
establishment of a credit bureau (Central
Risk), the creation of microfinance support
structures and the adoption of an ambitious
national strategy.
-Besides, to reach the level of those foreign
markets, it is necessary to put in place
regulations more adapted to the new
environment,
which
will
definitely
contribute to the development of the actors.
Table3: Research on Microfinance in Morocco
Title of research
The Study of microcredit
sector in Morocco
Realized by
Ann Duval
Year of
realization
2001
Contents
Conclusion
This research project presents the

state of microcredit sector in
Morocco (its history, The support
for this sector as well as these
characteristics), this research puts
-All the associations of microcredit benefit

of the law which settle the sector, but some
associations have received much more
financial and technical assistance than
others.
596

the point also on the needs for the
sector in term of institutional
strengthening, financing and
regulations. Moreover, it presents
some recommendations necessary
for its evolution.
This report presents general
theoretical
foundations
of
corporate finance from the
various theories information and
credit rationing. This report
handles
from
econometric
applications the characteristics of
companies having access to bank
credit, and that, whether in formal
or in informal plan. It also shows
the nature of the difficulties faced
by ME to access to bank credit
compared with the formal firms
studied in the assumption that the
constraints imposed on ME are
even more severe than those
experienced
by
formal
enterprises.
This Report provides an overview
of the financial system and a
general description of the current
state of development of the
microfinance sector in Morocco.
It describes also the current legal
and regulatory environment and
provides a summary of some
current policy-related obstacles to
the development of microfinance.
This report concludes with
CGAPs recommendations as to
microfinance
policy-related
interventions
worthy
of
consideration, whether to be
undertaken by CGAP or other
actors.
Risk, uncertainty and

microenterprises
financing in MoroccoComparative study with
formal business of the
Moroccan manufacturing
sector-.
Fatiha Bouharra
Memory for obtaining
the DESA
UFR "Applied
Econometrics to the
Macro and
Microeconomic
Modeling"-Hassan II
University-
2004
Diagnostic Report on the

Legal and Regulatory
Environment for
Microfinance in Morocco
By Xavier Reille and

Timothy R. Lyman
Director of the MENA
Initiative & a policy
advisor at CGAP
2005
Current situation of the

Morocco
Antoine PALLUD
2005
This article leans on work done

by the team of Francophone
Portal Microfinance, for the
creation of the Country Profiles
section.
Microfinance: what
perspectives of
development for IMF?
case of Morocco
Clara ATALLAH &

Omar EL HYANI (Great
Cycle School (ESCP
Europe))
2009
This report studies in depth the

situation of microcredit in
Morocco: its situation compared
to the countries of the region, its
specificities, its strengths and
weaknesses, also the impact of
-Lack of consistency in accounting and

financial analysis standards thereto,
transparency, information exchange and
supervision of the sector.
This report highlights the following
elements:
-MEs represent the greatest risk for banks.
-Banks have no structure of solid selection
for ME (Absence of accurate information).
-To resort to the AMCs is the solution
adopted for banks to manage better their
risk.
Summary of policy-related obstacles:

- Sunset of fiscal privileges for microcredit
associations;
- Possible exercise by Ministry of Finance
of its power to set loan pricing caps for
microcredit associations;
- Lack of legal capacity to mobilize equity
from shareholders;
- Legal barriers to transformations of
successful microcredit associations;
- Lack of credit information services
industry;
- Constraint on foreign investment due to
foreign exchange policy;
- Inability of banks and finance companies
to participate directly in microlending due
to interest rate caps.
General recommendations for policyrelated activities in Morocco:
- Transparency-driven regulation of
microcredit associations;
- Extension of tax privileges of microcredit
associations;
- Conditional technical assistance to
FNAM;
- Credit reference services;
- Introduction of amendments to permit
transformations
of
microcredit
associations;
- Technical assistance to shepherd
transforming microcredit associations.
This article describes the importance and
coverage of the microfinance sector, the
regulatory and legal framework governing
in Morocco as well as the structuring of the
profession. It also lists the main active MFIs
in the country.
-Microcredit remains a good development
tool in the fight against poverty, but not a
survival tool.
-Compared to the informal economy,
microcredit penalizes less the poor because
its rates remain lower, and remains an
597

institutional evolution issues and
finally it presents some ways of
improving this sector.
The implementation of a
product of Microleasing
within an institution of
microfinance
Anwar MOUFATIH
2010
This paper focuses on the

situation of non-payment and
insolvency of customers.
The advanced solution concerns
the development of a product
"micro leasing" following the
example of leasing practiced by
commercial banks. It intended to
allow the IMF to grant loans to its
customers to equip and buy
machinery and other tools
through a leasing, all in ensuring
that the funds granted will be
invested and are therefore
assigned to the object of the loan.
essential
tool
to
be used in
a clear social policy.
-The functioning of IMFs are not optimal:
the study demonstrates clearly that an
institutional evolution is necessary to make
of microcredit a tool even more adapted to
demand.
Sustainable development which the IMF is
called to promote, is not limited to a simple
fight against poverty and economic and
social integration of underprivileged layer,
it must certainly take into account the
respect and protection of the natural
environment.
IMFs can ensure and guarantee a clean
ecological space that respects the
international standards and laws. Thus
through the microleasing product. The
funding projects and the acquisition of clean
technologies that respect the environmental
condition can be possible. The microleasing
can be an effective tool to help poor people
to feed water and electricity from solar
energy.
5. CONCLUSION
The microfinance sector has for main mission to ensure financial inclusion and to contribute to the enhancement of
customers' living conditions. It is in this context that operates this sector in Morocco with a large target population
mainly in rural and isolated regions, where the poverty rate is quite high.
The mission of microfinance was not always respected by IMFs which adopted an approach concentrated on their
financial sustainability rather than on the customer. This has been deducted through several studies and research that
have been conducted as presented in this paper, to assess the impact of microfinance on the customer life improvement.
All the more, the thirst for gain and uncontrolled growth damaged the sector through the 2009 crisis, which was
overcome in 2012, thanks to the intervention of several operators in the Moroccan financial market aware of the necessity
to streamline their offers and adapt them to the needs of customers while adopting a strong collaborative approach
between all stakeholders in the sector.
Furthermore, analysis of the state of the microfinance sector in Morocco can be inferred from the necessity to review
the main pillars governing this sector of which mainly the Moroccan regulations to accompany the development of this
sector on one side and the increasing needs for its customers on the other hand.
6. REFERENCES
[1] Al Amana. Evaluation of the contribution of Al Amana to the development of its customers. February 5, 2004.
Available at: www.alamana.org.ma/images/Rapport_Impact_AlAmana.pdf
[1] Albaraka. Study of the economic and social impact of microcredit. Working paper. June, 2014.
[1] Amghar, I, Direction of treasury and outside Finances, Ministry of Economy & Finance. (2008). Evolution of the
microcredit sector in Morocco. Working paper, December 2008.
[1] Atallah, C. & El Hyani, O. (2005). Microfinance: what perspectives of development for IMF? Case of Morocco.
Research paper, Great Cycle School, ESCP Europe. May, 2009.
[1] Bouharra, F. (2004). Risk, uncertainty and microenterprises financing in Morocco: Comparative study with formal
business of the Moroccan manufacturing sector, Memory for obtaining the DESA, University Hassan II, Casablanca.
[1] CGAP. Development, crisis and recovery of the microfinance sector in Morocco.December 2009. Available at:
www.cgap.org
or
http://www.microfinancegateway.org/fr/library/essor-crise-et-redressement-du-secteur-de-lamicrofinance-au-maroc
[1] Duval, A. Evaluation of the micro-credit sector in Morocco. Working paper, September 28, 2001.
[1] IKM, Planet Finance Morocco & FNAM (2005). Evaluation of the impact of microfinance in Morocco. Available at:
www.alamana.org.ma/images/Etude_impact_IKM.pdf
[2] Crpon, B., Devoto, F., Duflo, E., & Pariente, W. Evaluation of the impact of microcredit in rural area in Morocco,
Srie Analyse dImpact Ex Post n2. Paris: Agence franaise de dveloppement, March, 2012.
[2] JAIDA. Sectorial study: MicroFinance one year after the announcement of turbulences. Working paper. September
2009.
598

[2] Moufatih, A. (2010). The implementation of a product of Microleasing within an institution of microfinance. Le
Management par La VALEUR des produits, procds et services, Revue de lAssociation Franaise pour lAnalyse de la
Valeur AFAV n124-125, PP.9-23.
[2] Mourji, F. (2000). Studies of the impact of Zakoura Micro-Credit (ZMC) Program. MicroStart Program. Working
paper, December 2000.
[2] Pallud, A. (2005). Current situation of the microfinance sector in Morocco. BIM n18. October 2015.
[2] Reille, X. (2014). Out of the crisis in the microfinance sector in Morocco: Timely and effective interventions.
International Finance Corporation World Bank Group.
[2] Reille, X., Lyman, T.R. (2005). Diagnostic Report on the Legal and Regulatory Environment for Microfinance in
Morocco. Working paper. June, 2005.
[3] The CMS portal: http://www.cm6-microfinance.ma/uploads/file/Etudes%20et%20decumentation
[3] The FNAM Portal: www.fnam.ma
[3] The Microfinance portal: www.microfinance.ma
[3] The Mix Market Portal: www.mixmarket.org
[3] Yunus Center : http://www.muhammadyunus.org/
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Asian Journal of Applied Sciences (ISSN: 2321 089)

Volume 04 Issue 03, June 2016

Studies and Research on Microfinance Sector in Morocco: An

Corresponding authors email: bennouna.ghita [AT] gmail.com

2. STATE OF DEVELOPMENT OF THE MICROFINANCE SECTOR

Asian Journal of Applied Sciences (ISSN: 2321 089)

2.2. Brief history of MicroFinance

3. THE STATE OF THE MICROFINANCE SECTOR IN MOROCCO

Asian Journal of Applied Sciences (ISSN: 2321 089)

Figure 1: The history and the development of the sector

3.2. Regulation and Supervision

Asian Online Journals (www.ajouronline.com)

Asian Journal of Applied Sciences (ISSN: 2321 089)

Evolution of the outstanding in (Thousands of DHs)

Evolution of the balance sheet in (Thousands of DHs)

Evolution of the PAR >30D in (Thousands of DHs)

3.4. The principal imfs

Figure 2: Moroccan Microfinance Associations

Asian Journal of Applied Sciences (ISSN: 2321 089)

Figure 3: Distribution of the Overall credit outstanding by AMCs

Figure 4: Distribution of IMFs by region

3.5. Activities funded by microfinance in Morocco

Asian Online Journals (www.ajouronline.com)

Asian Journal of Applied Sciences (ISSN: 2321 089)

Handicrafts and Crafts

Agriculture & Breeding

Figure 5: Distribution of activities financed by the Microfinance in Morocco

Figure 6: Distribution by gender of activities financed by microfinance in Morocco

Asian Online Journals (www.ajouronline.com)

Asian Journal of Applied Sciences (ISSN: 2321 089)

Handicrafts and Crafts

Agriculture & Breeding

Figure 7: Distribution of the stock of activities financed by the microfinance in Morocco

3.5.2. Profitability of the sectors of activity:

Figure 8: Outstanding of the main jobs of Trade

Figure 9: Outstanding of the main Handicrafts and crafts jobs

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Asian Journal of Applied Sciences (ISSN: 2321 089)

Figure 10: Outstanding of the main Service activities

Figure 11: Outstanding of the main agriculture & breeding jobs

Asian Journal of Applied Sciences (ISSN: 2321 089)

4. STUDIES AND RESEARCH ON MICROFINANCE IN MOROCCO

Title of the Study

Studies of the impact of

Fouzi Mourji through the

Analyze the impact of customers

Al Amana associationDepartment of Research

This study is based on four

Evaluation of the impact

This study had for main objective

Asian Online Journals (www.ajouronline.com)

Asian Journal of Applied Sciences (ISSN: 2321 089)

This study describes the trend of

Development, crisis and

This study puts the point on the

Sectorial study: microfinance one year after the

This sectorial study focus on the

Survey on the evaluation

This study aims to assess the

foundation for solidaritybased microfinance.

Asian Online Journals (www.ajouronline.com)

maturity and type of guarantee) so leading

Asian Journal of Applied Sciences (ISSN: 2321 089)

Investigate into profiling

The analysis of the trends of

This study aims to:

foundation for solidaritybased microfinance

foundation for solidaritybased microfinance

Asian Online Journals (www.ajouronline.com)

Asian Journal of Applied Sciences (ISSN: 2321 089)

Evaluation of the impact

The objective of the study is the

This study reviewed the nature of

Estimate the impact of Albaraka

The objective of this comparison

Amana institution and