The European Bank for Reconstruction and Development (EBRD) is extending a loan of up to €10 million in local currency to Fondation Arrawaj, a leading Moroccan microlender, to support young entrepreneurs in the country. The financing comes under the EBRD’s Youth in Business programme and will prioritize private micro, small, and medium-sized enterprises (MSMEs) owned or led by entrepreneurs under 35, with special focus on regions affected by the 2023 earthquake.
Young-led MSMEs represent a significant opportunity for Morocco’s financial sector and are seen as crucial drivers of greater financial inclusion. However, they continue to face serious financing challenges, as reflected in the fact that only about 14 percent of young Moroccans currently have a bank account. The EBRD’s support is designed to bridge these gaps and unlock new economic opportunities for youth.
Alongside the financing package, a technical cooperation programme will be implemented to strengthen Fondation Arrawaj’s capacity to serve the financial needs of young entrepreneurs. This includes training for staff and sub-borrowers, with a particular emphasis on digital skills and non-financial services. The facility will also be backed by first-loss risk cover for loans extended in earthquake-affected regions, helping to secure recovery and resilience.
Fondation Arrawaj, originally founded in 1996 as FONDEP, is the third-largest microfinance institution in Morocco, holding a lending market share of 19 percent. By March 2025, it managed assets close to €200 million and served nearly 120,000 clients through 256 branches across 15 regions, employing nearly 2,000 staff.
Since Morocco became a founding member of the EBRD in 2012, the Bank has invested more than €5.8 billion in 123 projects. Its focus in the country includes sustainable energy, private enterprise financing, infrastructure reform, and non-sovereign financing, with the new partnership reinforcing its commitment to youth entrepreneurship and inclusive growth.
