Morocco launched on Monday “Intelaka” initiative, which provides young entrepreneurs with the necessary support and funding to start their own business. The move gives substance to the integrated program spearheaded by King Mohammed VI to back SMEs and facilitate their access to financing.
The “Intelaka” program was launched in a ceremony chaired in Rabat by minister of economy & finance Mohamed Benchaaboun, in presence of governor of Bank Al Maghrib (Central Bank), Abdellatif Jouahri, Senior representative of Morocco’s banks association (GPBM), Mohamed Kettani, and head of Hassan II Fund for Economic & Social Development, Dounia Taarji.
This program offers a new generation of guarantee and financing products benefiting very small businesses, young project leaders, the rural world, the informal sector and exporting companies.
It seeks to encourage entrepreneurship in order to promote the socio-economic integration of young people, particularly in the rural world.
In response to the royal call, the banking sector has capped the interest rate at 2 pc, which is the lowest rate ever applied in Morocco. In the rural world, the ceiling has been set at 1.75 pc despite a higher “credit risk” due to climatic fluctuations and variations of agricultural products prices.
In a bid to support and facilitate businesses financing, the 2020 Appropriation Bill provided for the setting up of “the Fund to support entrepreneurship financing”. The $625 million Trust fund, which is spanning over 3 years, has been beefed up lately with a $ 210 million contribution from Hassan II Fund for Economic & Social Development.