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Morocco’s Central Bank Sets Up Mechanism to Finance Youth Projects with Low Interest

Morocco’s Central Bank Sets Up Mechanism to Finance Youth Projects with Low Interest
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Morocco’s Central Bank Sets Up Mechanism to Finance Youth Projects with Low Interest

Morocco’s Central Bank Sets Up Mechanism to Finance Youth Projects with Low Interest

Morocco’s Central Bank governor has pledged to set up an unlimited refinancing mechanism for loans of youth projects.

Moroccan banks will refinance small and medium-sized enterprises (SMEs) at 1.25 percent preferential interest rate as part of a plan to ease access to loans, Morocco’s state news agency said on Monday, citing Central Bank Governor Abdellatif Jouahri.

The rate is 100 points lower than the central bank’s benchmark interest rate held at 2.25 since 2016.

The plan was developed together by the government, the central bank and commercial banks after King Mohammed VI decried, in a speech last October, the limited financial support for young graduates and SMEs. He urged banks to contribute to development efforts and to make loans easier.

The country’s Central Bank is considered an independent institution since the amendment of its statute in 2005, and it is charged exclusively with leading the country's monetary policy and ensuring price stability.

During the announcement ceremony, Minister of Finance Mohamed Benchaaboun presented the program’s detailed documents, which included the three parties’ commitments.

Under the same plan, the government and commercial banks set up a fund worth six billion dirhams ($620 million) covering three years to boost the financing of SMEs, young entrepreneurs and to help curb the gray economy, the minister noted.

He pointed out that the program will adopt a set of integrated mechanisms, including loans and financing, take contributions to projects, provide guarantees and technical support and keep up with guidance.

The program aims at creating 27,000 new job opportunities and keeping pace with 13,500 additional construction projects per year.

President and CEO of BMCE Bank (Moroccan Bank for External Trade) Othman Benjelloun, for his part, stressed before King Mohammed VI the banks’ commitment to fully participate in the program, in implementation of the royal directives.

He specifically highlighted the banks’ commitment to freeing their share of the capital of the entrepreneur financing fund and finding a financing proposal for preferential terms in favor of the program’s targeted groups.

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FAO Aims for Key Outcomes at COP16 in Saudi Arabia

Preparations in the Saudi capital ahead of hosting the COP16 conference on combating desertification (from the “COP16” page on the X platform)
Preparations in the Saudi capital ahead of hosting the COP16 conference on combating desertification (from the “COP16” page on the X platform)
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FAO Aims for Key Outcomes at COP16 in Saudi Arabia

Preparations in the Saudi capital ahead of hosting the COP16 conference on combating desertification (from the “COP16” page on the X platform)
Preparations in the Saudi capital ahead of hosting the COP16 conference on combating desertification (from the “COP16” page on the X platform)

Dr. Abdul Hakim Elwaer, Assistant Director-General of the Food and Agriculture Organization (FAO), stated that the organization will take an active role at COP16, the UN conference on combating desertification, scheduled to take place in Saudi Arabia in early December.

In remarks to Asharq Al-Awsat, he expressed confidence that the conference—the first of its kind in the Middle East—would produce significant outcomes.

Elwaer’s comments came during a roundtable organized by FAO’s regional office in Cairo, attended by a select group of media representatives. The session focused on FAO’s participation in the upcoming conference and the importance of the Rio Trio —the integrated framework of the three major UN conventions addressing climate change, biodiversity conservation, and desertification.

Fida Haddad, FAO’s Program Officer for Land Rehabilitation and Climate Change, highlighted the interconnectedness of the three conventions and noted that COP16 would place a strong emphasis on land and water rehabilitation and their sustainable management.

Haddad pointed out that approximately 90% of the Middle East is affected by arid conditions. Despite this, local communities and Arab governments have made notable progress in addressing desertification and drought. She also announced that, for the first time, FAO has successfully placed food systems on the COP16 agenda, enabling discussions on how land rehabilitation can enhance food supply chains and systems.

Elwaer underscored FAO’s central role in achieving the second Sustainable Development Goal (SDG): eradicating hunger. He emphasized that FAO actively engages in the UN conventions on climate change, biodiversity, and desertification, which collectively contribute to this mission.

FAO’s focus, according to Elwaer, is on transforming food and agricultural systems to become more inclusive, efficient, and sustainable, aiming for better production, nutrition, and livelihoods. He highlighted the organization’s success in integrating these priorities into the agendas of the three conventions and collaborating with host countries on joint initiatives.

He further noted that Saudi Arabia’s hosting of COP16 is particularly significant for the region, which faces pressing challenges such as water scarcity, desertification, and food insecurity. The conference presents an opportunity for Middle Eastern nations to highlight these issues, explore solutions, and ensure their inclusion in global environmental discussions, not only at this event but in future COP sessions, he underlined.

Elwaer emphasized the growing global attention on desertification, as it is now impacting regions previously unaffected, such as southern Europe and parts of Latin America. These areas are witnessing alarming declines in arable land and forests, prompting them to seek lessons from the Arab world, which has developed resilience strategies to combat desertification over centuries.

FAO will have a strong presence at COP16, with two dedicated pavilions—one in the Blue Zone for official delegations and another in the Green Zone to engage civil society and conference participants, he said.

He added that in collaboration with Saudi Arabia and the UN, FAO will lead coordination on Food Day and Governance Day, scheduled for December 5 and 6, respectively. The organization will also participate in other specialized sessions throughout the conference.