Background

Background. Since 2010, Morocco has been considering the green economy as a crucial complementary element to its sustainable development agenda with the potential to trigger development opportunities in various economic sectors. Morocco’s National Strategy for Sustainable Development (NSDS) and its initial and updated nationally determined contribution (NDC) set the country’s commitment to the green economy and put forward the various actions for mitigating greenhouse gas (GHG) emissions and adapting to climate change.

While the transition to a green economy concerns all actors in the economic fabric, particular attention should be paid to Morocco’s small and medium-sized enterprises (SMEs) as these businesses represent 93% of all companies in the country and employ over 46% of its workforce. However, these businesses generate only 40% of the nation’s gross domestic product (GDP) and 31% of its exports, demonstrating the growth potential of Morocco’s SMEs and the need for support with integrating into global value chains. To achieve this potential, these companies require diversified and accessible financial assistance that allows them to grow in line with Morocco’s green vision, in turn benefiting the national economy, bolstering the competitiveness of Moroccan SMEs in international markets and allowing the country to meet its climate and sustainability targets.

In order to effectively contribute to the development of green investment mechanisms for Moroccan SMEs, the Ministère de l’Economie et des Finance [Ministry of Economy and Finance] (MEF) of the Kingdom of Morocco, with support from the British Embassy in Morocco (part of the Foreign Commonwealth Development Office) and Financial Sector Deepening Africa (FSD Africa), has commissioned this scoping study. This study focuses on the provision of green finance to SMEs, helping them to both grow by offering green products and services and improve the sustainability of their own operations