- EBRD lending up to €23.5 million to Finéa
- Financing will help MSMEs to participate in Moroccan tender procedures
- EU-backed facility will support the recovery of regions affected by the September 2023 earthquake
The European Bank for Reconstruction and Development (EBRD) is supporting micro, small and medium-sized enterprises (MSMEs) in Morocco by lending up to €23.5 million (to be provided in local currency) to Finéa, a financing company that specialises in helping MSMEs to participate in public and private tender procedures in the country.
The loan will benefit from first loss risk cover provided by the European Union (EU) through its European Fund for Sustainable Development Plus (EFSD+).
This financing will be lent on to private MSMEs, helping to foster more competitive markets and enhance access to public and private tender procedures in Morocco in areas such as municipal lighting, the supplying of public schools and hospitals, and infrastructure development.
This financing package is being provided under the earthquake response facility that the EBRD established to help rebuild Morocco’s economy and support affected areas following the devastating earthquake in September 2023. While it will focus on small businesses in earthquake-affected regions, it will also help to address financing gaps faced by MSMEs in other financially underserved parts of the country outside Casablanca and Rabat.
The facility will be accompanied by a comprehensive technical cooperation package aimed at developing a digital platform for Finéa’s new factoring and supply-chain financing products and integrating that platform into the company’s banking systems. This new platform OR financial product will help Finéa to cater for the specific financial needs of individual MSMEs.
Established in 1950, Finéa is a Bank Al-Maghrib-accredited financing company incorporated in Morocco. It is a subsidiary of the Caisse de Dépôt et de Gestion (CDG), a state-owned financial institution dedicated to serving the public interest. It aims to support the development of Moroccan MSMEs by facilitating access to financing and public and private tender procedures. It offers financing solutions which are required by MSMEs at various stages of such tender procedures – mainly cash advances and guarantees. At year-end 2023, Finéa had total assets of €216 million.
EFSD+ was established in June 2021 and offers EU partner countries assistance with key investments through grants or financial guarantees. In this way, the EU mobilises additional financial resources from the public and private sectors in support of sustainable development. EFSD+ has a total global guarantee capacity of €39.8 billion for the period from 2021 to 2027, of which €22.5 billion will be used in the EU’s enlargement and neighbourhood regions.
Morocco is a founding member of the EBRD. Since 2012, the Bank has invested more than €5.3 billion in the country through 112 projects to date. The Bank’s focus in Morocco is on supporting sustainable energy, direct and indirect financing of private enterprises, infrastructure reform and non sovereign financing.