Significant Growth in Microloans and Improvement in Microfinance Indicators in Morocco
Bank Al-Maghrib has reported that the total microloans granted reached 9.5 billion dirhams in 2024, marking an increase of 9.4% compared to 4.2% in the previous year. The central bank clarified that over 98% of these loans were provided by the four major organizations operating in microfinance.
Most of these loans, accounting for 88%, were directed towards very small enterprises, up from 87% in 2023, followed by loans for social housing at 11%, down from 12% the previous year. The percentage of loans provided in urban areas remained stable at 83%, while individual loans constituted 89%.
The outstanding debts of microfinance institutions amounted to 452 million dirhams, reflecting an 8% decrease, which indicates an improvement in the quality of the loan portfolio and a reduction in the risk rate to 4.7%, down from 5.6% the previous year. These non-performing loans were covered by provisions at a rate of 84%, compared to 83% in 2023.
Debts owed to credit institutions, primarily consisting of deposits with banks, grew by 36% to reach 315 million dirhams, up from 231 million dirhams last year, representing 3% of the total balance.
The bank debts of microfinance institutions stood at 6.1 billion dirhams, maintaining stability after a 13% increase last year. Local bank debts comprise 94% of this total, representing 68% of the overall resources of these institutions.
The equity of microfinance institutions rose by 9.7% to reach 2.83 billion dirhams, compared to 2.58 billion dirhams in the previous year, representing 26% of the total balance. The sector achieved a cumulative net income of 248 million dirhams after recording a profit of 66 million dirhams last year; however, six small institutions ended the year with financial deficits.
