The Moroccan government recently forecasted that microcredits will create two million permanent jobs over the next 10 years, a doubling of the previous forecast of one million jobs. The Mohammed VI Centre for Support for Social Microfinance, a government agency that conducts training, marketing support and research services for microfinance institutions and microentrepreneurs, reportedly claimed microfinance has created 1 million permanent jobs over an unspecified period of time. Of these, an estimated 6,000 jobs were created directly within microcredit organizations.
In 2006, Morocco established a value-added tax (VAT) exemption for microcredit associations to help expand the sector. The VAT exemption period is due to end on December 31, 2012; however budget minister Idriss Azami reportedly recommended Parliament extend the period to December 31, 2016.
By Jennifer Young, Research Associate
Sources and Additional Resources
Magharebia Story: “Morocco Banks on Microcredit to Create Jobs”
MicroCapital Story: “MICROCAPITAL BRIEF: Arab Spring Foundation’s Farasee Seeking to Raise $1b for “1 Million Jobs for MENA Initiative” in Morocco,” December 11, 2012
MicroCapital story: “MICROCAPITAL BRIEF: AlHuda Center of Islamic Banking and Economics of Pakistan Creates Center of Excellence in Islamic Microfinance,” July 26, 2012
MicroCapital story: “MICROCAPITAL BRIEF: HSBC to Provide Technical Assistance to Microfinance Institutions in the Middle East, North Africa in Partnership with Grameen-Jameel, Bankers Without Borders,” May 9, 2012
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