Supporting Access to Finance for Micro, Small and Medium Enterprises with Partial Credit Guarantees : The Moroccan Experience

Abstract

Micro, Small and Medium Enterprises (MSMEs) represent an important pillar of the Moroccan economy. Estimates indicate they account for more than 90 percent of all enterprises and contribute to 21.6 percent of total employment. These numbers only reflect the statistics of the formal economy: Their contribution to the real economy is significantly higher if the economic activity of the informal sector were to be included. Most MSMEs are in the services sector, followed by manufacturing and trade. The Moroccan government has acknowledged the importance of MSMEs for the national economy and has developed a number of initiatives aimed at improving the enabling environment for these firms. A new national strategy aimed at promoting the development of small enterprises was elaborated in 2011, which includes a simplified taxation system, adapted social charges, extended social security coverage, and specific banking products.