Accessing financing has long been a major challenge for Micro, Small, and Medium-sized Enterprises (MSMEs) in Morocco. Despite representing 99.6% of the country’s economic fabric, according to the 2021-2022 report from the Moroccan MSME Observatory, these businesses often face significant barriers when seeking credit. This lack of financing limits their growth and competitiveness, creating a persistent challenge in the national economy.
To address these difficulties, Morocco has introduced guarantee mechanisms aimed at facilitating MSMEs’ access to credit. These tools allow financial institutions to share the risks associated with lending, reducing collateral requirements and promoting a more inclusive approach to business financing.
At the heart of this system is Tamwilcom, formerly known as the Caisse Centrale de Garantie (CCG). It offers a wide range of guarantee and co-financing products tailored to the needs of MSMEs. One such product, “Damane Express”, covers 50% to 80% of bank loans granted to MSMEs, making it easier for businesses to secure funding for both investment and operational needs.
The impact of these guarantees is evident in recent figures. In 2023, bank loans to MSMEs in Morocco increased by 11.5% compared to 2022, reaching a total of 211.9 billion dirhams. This growth reflects the increased confidence of financial institutions in MSMEs, largely thanks to the security provided by organizations like Tamwilcom.
However, a deeper analysis reveals unequal access to financing. In 2023, 78% of total credit went to Small and Medium-sized Enterprises (SMEs), while Very Small Enterprises (VSEs) only received 22% of the funding. This disparity underscores the need to further adapt guarantee mechanisms to better support VSEs, which form a significant part of the economy but remain underfunded.
For businesses to reach the next level, they need more than just financing—they need long-term support mechanisms that accompany their evolution. Recognizing these challenges, the Moroccan government has undertaken several reforms to strengthen MSME support. The transformation of CCG into Tamwilcom as a public limited company aims to modernize and enhance the national guarantee system by providing more tailored solutions and improving intervention efficiency.
Alongside these reforms, specific funds have been created to assist struggling businesses. The “Financial Support Fund for MSMEs”, with an allocation of 3.6 billion dirhams, co-finances business restructuring with banks for viable enterprises facing temporary financial difficulties. Between its launch in 2014 and March 2016, this fund supported 245 businesses, safeguarding over 24,000 jobs and sustaining 12.5 billion dirhams in revenue.
While credit guarantees have proven effective, a major challenge remains: ensuring broader and more equitable access to financing for all businesses. Despite notable progress, the risks persist. In 2022, Morocco saw a record 9,740 business dissolutions, an 18% increase from 2021. This trend highlights the fragility of many MSMEs and the need to further strengthen financial support mechanisms, especially in times of economic crisis.
To improve the effectiveness of guarantee systems, it is crucial to diversify financial products, adjust eligibility conditions to fit MSME realities, and enhance collaboration among financial institutions, guarantee organizations, and professional associations. These steps will help secure a more resilient and inclusive economic landscape, ensuring that small businesses—Morocco’s economic backbone—can thrive and grow.
