FIF - Morocco WiB - Fondation Arrawaj (EFSD+3)

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Overview

Provision of a senior unsecured loan in the amount of up to EUR 10 million equivalent in local currency (MAD 110m) in favour of Fondation Arrawaj under the Women in Business ("WiB") programme to support women-led MSMEs, with a focus on the ones located in the regions affected by the 8th September 2023 earthquake.

Project ID 54294

Status Repaying

Location

Morocco

Business Sector

Financial Institutions

Notice Type

Private

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Company Contact Information

Nada Fassi-Fehri
https://www.fondation-arrawaj.ma/
Imm. Saraya, angle Bd. Riad et Av; Al Arz Hay Riad RABAT 10100- Maroc, Rabat, Maroc

Project ID 54294

Status Repaying

Location

Morocco

Business Sector

Financial Institutions

Notice Type

Private

Environmental Category

Approval Date

10 Oct 2023

Disclosure date

19 Oct 2023

As permitted by paragraph 2.6 of Section III of the Access to Information Policy, disclosure of this PSD was deferred in accordance with paragraph 1.4.4 of the Directive on Access to Information.

As per section 1.4.2 (iii) of the Directive on Access to Information: "For Projects approved by Bank management where the Board of Directors has delegated the approval authority, the PSD shall be disclosed at the start of the relevant no-objection notification period to a member country of the Bank in accordance with Article 13 (iii) of the Agreement Establishing the EBRD."

Project description

Project objectives

The project aims to promote women's entrepreneurship and participation in business by improving their access to finance and advice through dedicated credit lines and tailored technical assistance programmes. A special focus will be given to distribution of funds in the regions and outreach to new customers. Moreover, the project will support access to finance for women-led MSMEs in the regions affected by the 8th September 2023 earthquake.

Transition impact

ETI Score:80

ject falls under the WiB programme in Morocco and, as such, is expected to contribute to the Inclusive and Competitive transition impact qualities.

Inclusive: under the Inclusive quality, the project will help Fondation Arrawaj adapt its business model towards women entrepreneurs, helping the microfinance institution expand its lending in favour of this underserved segment. Complementary technical cooperation, implemented through EBRD's Advice for Small Businesses programme, will strengthen the entrepreneurial and managerial capacities of sub-borrowers. EBRD financing also aims at preserving and rebuilding livelihoods and human capital in the regions directly affected by the 8th September earthquake as up to 50% of the loan amount will be directed to those regions.

Competitive: under the Competitive quality, the project will contribute to the expansion of Fondation Arrawaj's portfolio of loans to women-led MSMEs by reaching new clients, while maintaining a minimum regional share and sound asset quality.

Client information

FONDATION ARRAWAJ DE LA FINANCE INCLUSIVE

Founded in 1996 under the name "FONDEP", Fondation Arrawaj is the third largest Microfinance Institution in Morocco with total assets of ca. EUR 171m as of YE2022 and a market share of ca. 18%. As of june 2023, FA employed ca. 2,000 staff operating in 211 branches in 14 regions in Morocco and serving more than 126,000 clients throughout the country.

EBRD Finance Summary

MAD 110,000,000.00

Total project cost

MAD 110,000,000.00

Additionality

Knowledge, innovation, and capacity building: EBRD provides expertise, innovation, knowledge and/or capabilities that are material to the timely realisation of the project's objectives, including support to strengthen the capacity of the client.

Financing structure: Response to the Al Haouz earthquake: EBRD financing effectively bridges a financing gap due to adverse market conditions.

Environmental & Social Summary

Categorised FI (ESP2019). Fondation Arrawaj is an existing client and has demonstrated compliance with the EBRD's PRs 2, 4 and 9. The MFI will be required to continue to apply EBRD's E&S Risk Management Procedures for Corporate, MSME and Microfinance loans and ensure the sub-projects comply with national requirements for environment, health and safety, social and labour standards. Fondation Arrawaj will continue to submit annual environmental and social reports to EBRD to monitor their performance.

Technical Cooperation and Grant Financing

The loan will be accompanied by: (i) a technical cooperation ("TC") programme to provide technical support to Fondation Arrawaj through staff training, internal capacity-building and skill development to more accurately understand and serve the financial needs of women-led MSMEs, funded by the European Union ("EU"), (ii) capacity-building and advisory services delivered directly to women-led MSMEs to support their know-how and entrepreneurial skills development, funded by the EU, and (iii) first loss risk cover expected under EU EFSD+ Financial Inclusion in the Neighbourhood (East and South) Proposed Investment Programme ("PIP") and the EBRD's Shareholder Special Fund ("SSF").

Company Contact Information

Nada Fassi-Fehri
https://www.fondation-arrawaj.ma/
Imm. Saraya, angle Bd. Riad et Av; Al Arz Hay Riad RABAT 10100- Maroc, Rabat, Maroc

PSD last updated

19 Oct 2023

Understanding transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with the EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and its associated Environmental and Social Requirements (ESRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the ESRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation, and to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about the environmental and social (E&S) performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD also requires its clients to disclose information, as appropriate, about the risks and impacts of projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all of the Bank's activities in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The EBRD believes that identifying and resolving issues in the project assessment and approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts andhelps to monitor integrity risks in projects post-investment.

OCCO is further responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, either within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. OCCO will follow-up all matters reported. It will review all matters reported. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP, which entered into force on 1 January 2025, sets out how the EBRD discloses information and consults with its stakeholders to promote better awareness and understanding of its strategies, policies and operations. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (for example, through the client’s project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the mechanism is: to support dialogue between project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or the project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate and how to submit a Request for review. Alternatively, contact IPAM by email at ipam@ebrd.com for guidance and more information on IPAM and how to submit a request.

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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FIF - Morocco WiB - Fondation Arrawaj (EFSD+3)

Overview

Project timeline

Company Contact Information

Project description

Project objectives

Transition impact

Client information

EBRD Finance Summary

Total project cost

Additionality

Environmental & Social Summary

Technical Cooperation and Grant Financing

Company Contact Information

PSD last updated

Understanding transition

Business opportunities

General enquiries

Environmental and Social Policy (ESP)

Integrity and compliance

Access to Information Policy (AIP)

Independent Project Accountability Mechanism (IPAM)