Morocco relies on microfinance to create jobs
17 December 2012
Read by 2065 persons
[AFP / Fadel Senna] The Moroccan government wants to develop microfinance to create jobs.
The Moroccan government plans to use microcredit to create two million permanent jobs over the next ten years, instead of the one million currently projected.
Loans from microcredit institutions have been exempt from value added tax (VAT) since 2006, but this provision is expected to end on December 31, 2012.
To help the microfinance sector develop and encourage micro-entrepreneurs to develop their businesses, this VAT exemption period should be extended until December 31, 2016, explained Budget Minister Idriss Azami to parliament on Monday, December 10.
Microfinance creates real job opportunities in Morocco. This sector has a special place in the Moroccan financial system, and acts as a powerful engine through its role in financial inclusion, poverty reduction and the integration of economically weak members of society through the creation of jobs and income-generating activities, he indicated.
According to the Mohammed VI Center for supporting social microfinance, the sector has, at the end of 2011, created nearly one million permanent jobs and some six thousand direct jobs within microcredit organizations.
The president of the National Federation of Microcredit Tarik Sijilmassi said that the government and the justice system must protect the interests of this sector, which proves its potential and creates 1.2 jobs for each loan. The goal, he added, is to increase the number of permanent jobs created over the next ten years, to increase it from one to two million, with a total of 3.2 million beneficiaries.
Economist Mohamed Cherghouni stressed that support for micro-entrepreneurs in terms of training and awareness-raising was essential to enable them to develop their micro-projects.
The Moroccan authorities seem to favor the idea of developing this sector. In a message read at a conference in Skhirat dedicated to this sector on October 11, King Mohammed VI expressed his support for the promotion of microfinance.
"This sector must remain true to its original purpose, which is to support, finance and help entrepreneurs who embark on income-generating activities within the most disadvantaged communities. Furthermore, it is always important to take into account the human dimension when assessing financial needs, in order to broaden the possibilities and choices offered to the women and men of Morocco," added the sovereign.
According to the Budget Minister, programs are in place to cover the country more comprehensively, with priority given to rural areas where poverty is widespread. The goal is to change people's daily lives.
Fouad Lahdef, 35, benefited five years ago from a microcredit of 5,000 dirhams. He opened a small workshop and bought a second-hand sewing machine. With his electrician's diploma, he repairs household appliances, while his wife mends men's clothes.
"Thanks to this small sum, my life has changed," he explained to Magharebia. "I now have a stable job and after two years of work, I became self-sufficient. Today, I rent a house whereas before, I lived with my parents," he says.
And he concludes: "At the start, it wasn't easy. But you have to dare to take the first step. Thanks to my savings, I am now considering expanding my business."
Siham Ali.
Magharebia.com
Published on December 14, 2012.
Posted online on December 17, 2012.
The Moroccan government plans to use microcredit to create two million permanent jobs over the next ten years, instead of the one million currently projected.
Loans from microcredit institutions have been exempt from value added tax (VAT) since 2006, but this provision is expected to end on December 31, 2012.
To help the microfinance sector develop and encourage micro-entrepreneurs to develop their businesses, this VAT exemption period should be extended until December 31, 2016, explained Budget Minister Idriss Azami to parliament on Monday, December 10.
Microfinance creates real job opportunities in Morocco. This sector has a special place in the Moroccan financial system, and acts as a powerful engine through its role in financial inclusion, poverty reduction and the integration of economically weak members of society through the creation of jobs and income-generating activities, he indicated.
According to the Mohammed VI Center for supporting social microfinance, the sector has, at the end of 2011, created nearly one million permanent jobs and some six thousand direct jobs within microcredit organizations.
The president of the National Federation of Microcredit Tarik Sijilmassi said that the government and the justice system must protect the interests of this sector, which proves its potential and creates 1.2 jobs for each loan. The goal, he added, is to increase the number of permanent jobs created over the next ten years, to increase it from one to two million, with a total of 3.2 million beneficiaries.
Economist Mohamed Cherghouni stressed that support for micro-entrepreneurs in terms of training and awareness-raising was essential to enable them to develop their micro-projects.
The Moroccan authorities seem to favor the idea of developing this sector. In a message read at a conference in Skhirat dedicated to this sector on October 11, King Mohammed VI expressed his support for the promotion of microfinance.
"This sector must remain true to its original purpose, which is to support, finance and help entrepreneurs who embark on income-generating activities within the most disadvantaged communities. Furthermore, it is always important to take into account the human dimension when assessing financial needs, in order to broaden the possibilities and choices offered to the women and men of Morocco," added the sovereign.
According to the Budget Minister, programs are in place to cover the country more comprehensively, with priority given to rural areas where poverty is widespread. The goal is to change people's daily lives.
Fouad Lahdef, 35, benefited five years ago from a microcredit of 5,000 dirhams. He opened a small workshop and bought a second-hand sewing machine. With his electrician's diploma, he repairs household appliances, while his wife mends men's clothes.
"Thanks to this small sum, my life has changed," he explained to Magharebia. "I now have a stable job and after two years of work, I became self-sufficient. Today, I rent a house whereas before, I lived with my parents," he says.
And he concludes: "At the start, it wasn't easy. But you have to dare to take the first step. Thanks to my savings, I am now considering expanding my business."
Siham Ali.
Magharebia.com
Published on December 14, 2012.
Posted online on December 17, 2012.
