Sunday, November 05, 2006

Micro-credit targets Moroccan poverty

The on-line journal Magharebia is running an interesting story by Sarah Touahri about the impact of micro-loans on the rural poor in Morocco. Here is an extract:

With the help of low-interest micro-credit loans, many poor Moroccans, including women and people from rural areas, have been able to escape poverty and start their own businesses.

Presently, 12 micro-credit associations exist in Morocco. With help from the UN Development Programme, the US Agency for International Development and other organisations, thousands of loans ranging from 500 dirhams to 50,000 dirhams have been granted. Clients must have a median household expenditure of no more than 2,500 dirhams.

Jihane El Gueddaoui, an Al Amana management attaché for the promotion of micro-enterprises, told Magharebia her association aims to reach more than 500,000 households by 2009. After some beneficiaries complained about the small scale of the loans, the credit limit was raised to 50,000 dirhams.

She says Al Amana is particularly interested in reaching the rural poor.

"The introduction of micro-credit in rural areas is still largely limited to craftsmen, smallholdings and other services, while the potential for financing classic agriculture remains enormous," she pointed out.


Read the full story here: Micro-credit.


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