Microcredit portfolio grows to 9.5 billion dirhams with improved risk indicators

Microcredit Booms in Morocco: Portfolio Hits Record High

Moroccan microcredit sector shows strong growth and positive risk trends.

The gross microcredit portfolio in Morocco surged to a record high of 9.5 billion dirhams in 2024, representing a notable 9.4 percent year-on-year increase, according to Bank Al-Maghrib’s annual banking supervision report.

Domination and Destination: Four leading associations control over 98 percent of all distributed microloans. Of these loans, 88 percent are directed towards microenterprises, while 11 percent support social housing initiatives. Urban areas receive the majority of funding, absorbing 83 percent of total loans, with 89 percent granted as individual credits.

Risk Reduction: The volume of non-performing loans saw a significant decrease of 8 percent, reaching 452 million dirhams. This decline reduced the risk ratio from 5.6 to 4.7 percent. Provision coverage also improved to 84 percent.

Financial Stability: Sectoral debt remained stable at 6.1 billion dirhams, accounting for 68 percent of funding sources. Local banks provide the vast majority of these funds, representing 94 percent of total contributions. Equity witnessed a notable increase of 9.7 percent to 2.83 billion dirhams, now constituting 26 percent of liabilities.