Speaking on this occasion,the director of the Department of Monitoring of Payment Systems and Means and Financial Inclusion at Bank Al-Maghrib,Hakima El Alami,affirmed that financial inclusion plays a preponderant role in economic development,by gradually reducing inequality and increasing well-being.
“At Bank al-Maghrib, we have been aware for almost two decades of the importance of financial inclusion, not only for the development of the financial sector, but also for socio-economic development, reducing inequalities and strengthening of social cohesion,” she said.
Capitalizing on the experience of the Foundation, BAM then proceeded to deploy the National Financial Inclusion Strategy, which enabled the identification of segments excluded and poorly served by financial services, namely women, populations rural areas, young people, low-income populations and very small businesses, she explained.
This Strategy has set itself the medium (2023) and long-term (2030) objectives of improving levels of inclusion and minimizing inequalities between men and women, rural and urban populations, young people and adults. , noted the manager.
Thanks to the commitment and mobilization of all stakeholders, the first phase of the Strategy, which spanned 5 years (2019-2023), was completed, indicated ms. El alami, affirming that considerable progress have been achieved in terms of legal and regulatory reforms, tax incentives, education and dialogue programs.
Among the main reforms,the official cited the adoption of the Microfinance Law and its related regulations,with the aim of strengthening the role of the sector in the financial inclusion of underserved segments,the adoption of laws and regulations on crowdfunding,thus stimulating the development of new financing offers for young entrepreneurs in particular.
Achievements in this area have thus enabled a meaningful improvement in indicators of access to financial services, the number of access points having increased from 13,600 in 2017 to 31,515 in 2022, underlined the manager, adding that the coverage of rural municipalities is increased from 25% in 2017 to 34% at the end of 2022, exceeding the 30% target set for 2023.
The reforms have also favored the digitalization of financial services, which have become a vector for the implementation of social assistance programs, welcomed Ms. El Alami, noting that the second phase of this initiative has just been launched, with the aim of developing an appropriate concept for rural populations.
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What are the main barriers to financial inclusion in morocco?
Interview with Hakima El Alami: Driving Financial Inclusion in Morocco
Editor at Time.news: Welcome, Ms. El Alami. It’s a pleasure to have you here to discuss the critical importance of financial inclusion in Morocco. Can you start by explaining how financial inclusion impacts economic development?
Hakima El Alami: Thank you for having me. Financial inclusion is paramount for economic development as it helps in systematically reducing inequalities and enhancing overall well-being in society. At Bank Al-Maghrib, we recognise that inclusive financial systems not only promote the growth of the financial sector but also foster socio-economic development and strengthen social cohesion.
Editor: That’s insightful. You mentioned the National Financial Inclusion Strategy. Can you elaborate on its objectives and its importance?
Hakima El Alami: Absolutely. Our National Financial Inclusion Strategy aims to close the gaps in service provision among underserved segments of the population, such as women, rural communities, youth, low-income groups, and very small businesses. This strategy outlines medium-term objectives for 2023 and long-term goals for 2030, focusing on improved financial inclusion and a reduction in inequalities among different demographics.
Editor: Amazing progress is reported in this area. can you highlight the key achievements of the first phase of this strategy from 2019 to 2023?
Hakima El alami: Certainly! The first phase of the strategy was completed with substantial progress across multiple fronts. We saw considerable reforms in legal and regulatory frameworks, the introduction of tax incentives, and enhancements in educational programs. Noteworthy achievements include the adoption of the Microfinance Law, aimed at empowering underserved segments, and regulations on crowdfunding to support young entrepreneurs.Access to financial services experienced significant growth, increasing from 13,600 access points in 2017 to 31,515 in 2022, alongside a notable rise in rural financial coverage.
Editor: Those statistics are impressive.What role has digitalization played in this transformation?
Hakima El Alami: Digitalization has been a game-changer in enhancing access to financial services. It has also facilitated the implementation of social assistance programs effectively. With our recent launch of the second phase of the National Financial Inclusion Strategy, we aim to tailor our financial offerings specifically for rural populations, leveraging digital tools to ensure that no one is left behind.
Editor: As the financial landscape evolves,what advice would you offer to startups and entrepreneurs in Morocco looking to tap into these new opportunities?
Hakima El Alami: For startups and entrepreneurs,my foremost advice is to actively engage in the available educational programs and utilize the regulatory frameworks that support innovation,like crowdfunding laws. They should also consider leveraging digital platforms to reach broader audiences, thus enhancing their market accessibility. Collaboration with fintech solutions can also help them scale efficiently.
Editor: Sounds promising! how do you see the future of financial inclusion in Morocco over the next few years?
Hakima El Alami: I am optimistic about the future of financial inclusion in Morocco. As we move toward our 2030 goals, I believe we will witness a significant reduction in inequalities along with broader participation in financial systems. Continuous engagement from all stakeholders will be vital in achieving these objectives, and I am confident that with the right strategy and commitment, we can create a financially inclusive environment for everyone.
Editor: Thank you, Ms. El Alami, for yoru time and insights on financial inclusion in Morocco. Your passion for this crucial initiative is truly inspiring!
Hakima El Alami: Thank you for the possibility to discuss this significant topic.