Four pilot regions for the implementation of the national strategy for VSEs
28 June 2012
Read by 1482 persons
New measures supporting very small enterprises (VSEs) will allow easy access to financing, adapted taxation, and social coverage adjusted to the needs and specificities of this category of businesses.
They are very small, yet they can be very useful. These are very small enterprises (VSEs) which, despite their very small size, are able to create jobs, fight poverty, and even contribute to the dynamism of the economy. This is what gives them growing interest, particularly from public authorities, in partnership with the banking sector and other institutions involved in financing the economy.
Thus, less than a month after the launch of a new product designed to facilitate VSEs' access to credit, the public authorities are taking further action by validating new measures in favor of these small structures. Indeed, the Steering Committee of the national strategy for promoting very small enterprises (VSEs) validated at the end of last week measures allowing easy access for VSEs to financing, adapted taxation, and social coverage adjusted to the needs and specificities of this category of businesses.
Public-private partnership
For greater efficiency of this system, this committee also provides for a pre- and post-creation support measure to ensure the development and sustainability of VSEs, according to a press release from the Ministry of General Affairs and Governance following a meeting of this unit, chaired by the Minister, Mohamed Najib Boulif.
It should be noted that this strategy is developed in consultation with all public and private stakeholders at the national and regional levels and with the support of the German Cooperation for Sustainable Development (GIZ). Its implementation will involve an institutional framework that will lead to the establishment of "Regional VSE Centers" which must rely on existing actors and play the role of "front office" for VSEs. The management of this strategy will be ensured by a coordination structure at the national level, according to the same source.
This implementation will begin next year and will be gradual.
Four pilot regions are planned in this regard and will benefit from the application of this strategy as early as 2013. These are Nord/Tangier-Tetouan, Centre-Grand Casablanca, Sud-Souss Massa Draa and East-Oriental. To do this, state-region program contracts will be concluded setting out the objectives to be achieved and the human and financial resources to be mobilized, before the generalization of this experience to all the regions of the country.
Furthermore, these new measures will undoubtedly contribute to the growth of the VSE sector, which, according to some estimates, constitutes nearly 60% of businesses nationwide. Especially since they have started to benefit, since last month, from a new financial instrument. This new product called "Damane Express", designed to facilitate access to credit for VSEs, has been implemented through a partnership between the Ministry of Economy and Finance, the Professional Grouping of Moroccan Banks and the Central Guarantee Fund.
This mechanism aims to reduce by 70% the risk taken by banks in terms of credit, both investment and operating, the amount of which does not exceed one million DH.
This measure is "intended to support banks in developing products adapted to this segment of the national productive fabric and their commitment to a "downscaling" approach to business credit".
Encourage self-entrepreneurship
The new product, designed to facilitate access to credit for VSEs, aims to encourage self-entrepreneurship. It also aims to support VSEs, which currently suffer from financing and working capital problems, by facilitating their access to bank loans. This provision is in addition to the tax measures taken last year concerning the reduction of the corporate tax rate (IS) from 30% to 15% for this category of businesses. This measure will benefit nearly 90% of VSEs in the Kingdom, according to the Ministry of Finance.
Key Points
The initial amount of the fund dedicated to the "Damane Express" product is set at 100 MDH and will develop according to the needs of VSEs, according to the Ministry of Finance.
With a duration of 18 months for short-term loans and renewable up to five times maximum, this guarantee covers all sectors of activity, except real estate development and deep-sea fishing.
The guarantee rate is 70% of the principal credit, with a maximum guarantee risk ceiling set at 15 MDH, on the same company, all loans combined.
Lahcen Oudoud.
Lematin.ma
Published June 24, 2012.
Posted online June 28, 2012.
They are very small, yet they can be very useful. These are very small enterprises (VSEs) which, despite their very small size, are able to create jobs, fight poverty, and even contribute to the dynamism of the economy. This is what gives them growing interest, particularly from public authorities, in partnership with the banking sector and other institutions involved in financing the economy.
Thus, less than a month after the launch of a new product designed to facilitate VSEs' access to credit, the public authorities are taking further action by validating new measures in favor of these small structures. Indeed, the Steering Committee of the national strategy for promoting very small enterprises (VSEs) validated at the end of last week measures allowing easy access for VSEs to financing, adapted taxation, and social coverage adjusted to the needs and specificities of this category of businesses.
Public-private partnership
For greater efficiency of this system, this committee also provides for a pre- and post-creation support measure to ensure the development and sustainability of VSEs, according to a press release from the Ministry of General Affairs and Governance following a meeting of this unit, chaired by the Minister, Mohamed Najib Boulif.
It should be noted that this strategy is developed in consultation with all public and private stakeholders at the national and regional levels and with the support of the German Cooperation for Sustainable Development (GIZ). Its implementation will involve an institutional framework that will lead to the establishment of "Regional VSE Centers" which must rely on existing actors and play the role of "front office" for VSEs. The management of this strategy will be ensured by a coordination structure at the national level, according to the same source.
This implementation will begin next year and will be gradual.
Four pilot regions are planned in this regard and will benefit from the application of this strategy as early as 2013. These are Nord/Tangier-Tetouan, Centre-Grand Casablanca, Sud-Souss Massa Draa and East-Oriental. To do this, state-region program contracts will be concluded setting out the objectives to be achieved and the human and financial resources to be mobilized, before the generalization of this experience to all the regions of the country.
Furthermore, these new measures will undoubtedly contribute to the growth of the VSE sector, which, according to some estimates, constitutes nearly 60% of businesses nationwide. Especially since they have started to benefit, since last month, from a new financial instrument. This new product called "Damane Express", designed to facilitate access to credit for VSEs, has been implemented through a partnership between the Ministry of Economy and Finance, the Professional Grouping of Moroccan Banks and the Central Guarantee Fund.
This mechanism aims to reduce by 70% the risk taken by banks in terms of credit, both investment and operating, the amount of which does not exceed one million DH.
This measure is "intended to support banks in developing products adapted to this segment of the national productive fabric and their commitment to a "downscaling" approach to business credit".
Encourage self-entrepreneurship
The new product, designed to facilitate access to credit for VSEs, aims to encourage self-entrepreneurship. It also aims to support VSEs, which currently suffer from financing and working capital problems, by facilitating their access to bank loans. This provision is in addition to the tax measures taken last year concerning the reduction of the corporate tax rate (IS) from 30% to 15% for this category of businesses. This measure will benefit nearly 90% of VSEs in the Kingdom, according to the Ministry of Finance.
Key Points
The initial amount of the fund dedicated to the "Damane Express" product is set at 100 MDH and will develop according to the needs of VSEs, according to the Ministry of Finance.
With a duration of 18 months for short-term loans and renewable up to five times maximum, this guarantee covers all sectors of activity, except real estate development and deep-sea fishing.
The guarantee rate is 70% of the principal credit, with a maximum guarantee risk ceiling set at 15 MDH, on the same company, all loans combined.
Lahcen Oudoud.
Lematin.ma
Published June 24, 2012.
Posted online June 28, 2012.
