Q: How large is the Microfinance Market in Morocco?

A: It is a market which has been established for more that 12 years in Morocco. There are now 12 Microfinance institutions of different sizes which are serving serving more than 1 million clients and the market is worth more than 5.2 billion dirhams. We are now changing the scale of our activities . When we started we knew nothing about microfinance and we developed the market and educated our clients on how to deal with microfinance. Following this initial stage we have reached a mature stage in the market with tools of governance, supervision and products. The legal status of the large microfinance institutions is changing from NGO's to real financial institutions.

Q: Is the microfinance industry catering for young entrepreneurs who need loans?

A: No, because the microfinance industry was establshed with people who already had loans . There is no product for start ups and young people trying to create new income creating activity. Some larege institutions are testing new products for this trype of client. I understand their caution because there is a substantial risk involved. Not just for young entrepreneurs but any new entrepreneurial activity in teh first years of operation. With microcredit without any guarantee it is very difficult to finance new start ups.

Q: How much can you loan clients?

A: This is defined by law. From 500 to 50,000 dirhams. It is only for small operations . There are many who require more money but they are too large for microfinance and too small for banks and they areat the moment without financial services. There are new companies who will probably take on this market.

Q: How many microfinance institutions are there?

A: There are new developments going on in the microfinance industry; upgrading of large microfinance institutions , a dove scaling of some banks and we will definitely have the involvement of the Postal Bank. It has already been established and it will probably focus on microenterprises and small enterprises.

Q: What kind of due dilligence are you carrying out on potential clients ?

A: To assess the potential risk there are many kinds of due dilligence, the first one is to know more about the situation of the peopleand understanding their activity and to visit their home. The thirdstage is to complete a detailed financial analysis.

Q: What are Planet Finance operations in Morocco?

A: We are an international NGO with our headquarters in Paris active in 45 countries world wide. In Morocco we have an office in Casablanca in charge of North Africa which was started eight years ago.
We have a very dynamic team and under our President Mr Jacques Attali.

Q: How do you avoid the danger of loan clients becoming indebted and unable to pay the loan back ?

A: This is the work k of the credit bureau, its not there to protect the microfinance institutions, it is there to protect the clients.We help by ensuring that they are financially educated so that they can manage their money.

Q: How many microfinance companies are their in Morocco?

A: There are no companies, by law there are only NGOs operating in Morocco.

Q: How do you see technology helping microfinance in Morocco?

A: There are four major challenges with which New Technology can help. The first is to reduce the cost of transactions by using New Tecnology. The second is to help us reach more people say in a rural area which is not near to financial centres. The third is to protect the clients by establishing a credit bureau and the fourth factor is that microfinace institutions need an information system.The information is the most important factor in a finacial institution.

Interview with Mustapha Bidouj Secretary General Foundation Banque Populaire for Micro Credit.
Q: What is the role of the Foundation Banque Populaire in Micro credit in Morocco ?

A:The FBMCwas created by the Group Banque Populaire which is considered the bank for small entrenpreneurs such as artisans. It was therefore natural to create a foundation which would help these people, our clients, to improve their work and most importantly to develop their activities from the informal sector to the formal sector. Firstly, we have a targeted population from the informal sector for which the system of microcredit is suitable. Second, when this population reacts positively to our program, our aim is not to develop the informal sector, but rather to accompany these people to develop their work so they become part of the formal sector. Now, we have a network of 230 agencies and we recruit around 1000 persons.

Q: How many women benefit from microfinance in Morocco?

A: Women represent only 4% and we don’t have this figure on discriminatory terms. Perhaps women in the targeted population do not have a business mentality. But we are constantly encouraging them to get a micro credit and start their own activity so they become more independant.

Q: Does micro credit help to reduce poverty?

A: Morocco has a strategy to eradicate poverty, and we believe that micro credit can play a great role to achieve this objective. We have a training centre in which we teach the fundamentals of making business through a microcredit which is getting more interested candidates.