Archives: December 2009

Fund «JAIDA» released its annual report on the status of microfinance in Morocco

IMFs in Morocco
After nine months only to start its activities, the Fund occupied the «JAIDA» to finance associations specialized in micro-loans have a prominent place in the microfinance sector in Morocco, where the Fund was the culmination of Morocco's efforts and activities aimed to develop microfinance. Conditions are favorable reception offered contributed to demonstrate the difficulties of financing micro-credit associations, particularly those of medium and small. During this short period, enabling the Fund «JAIDA» to play an intermediary role, and contributed to the promotion of partnership with a number of economic sectors, where loans have enabled micro-credit associations to develop their services and to expand, especially in rural areas, in terms of employment benefit amounts including customers, in productive projects and income-generating.
According to the same report, recorded last year 2008 set a new record in the number of beneficiaries of microcredit, as the number exceeded one million people, while the total size of the record of the appropriations allocated more than 30 billion dirhams, on the grounds that the year 2006 recorded about 15 billion dirhams, and benefited of which 4.5 million people, represents the women's race, 66 per cent.
The amount recorded in September 2007, has reached five billion dirhams, registering an increase of 67 per cent, compared with 2006, or 4DH 7 billion, at a time when the number of active customers more than 400 thousand customers. Betting and micro-credit associations, under the flag of federalism, to transfer the number to 10 million customers, in the year 2010.
It is noteworthy that the Fund «JAIDA» to re-finance micro-credit associations, was submitted to the Foundation ZaKoura, specializing in micro-loans, a loan of 40 million DHs, aimed at promoting microfinance sector, as demand grows and the pace of Moroccans, especially the artisans, the micro-loans in recent years , as has become Morocco in the forefront of the Mediterranean countries active in this area.
According to the National Federation of Microcredit Associations that the proportion of women benefiting from the proposed loans had reached 70 per cent in 2008, and explains the dynamics of this indicator of women in this area, and treat them positive microfinance, while explain the relatively low percentage recorded among men, in a bad use of funds, The research shows that men are more likely to consume what amounts Estelmonh issues may be far from production projects to generate income.

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Climate Change and Microfinance

Grammen Foundation
Grameen Foundation and Oxfam America released a new report which examines the critical role microfinance institutions (MFIs) can play in mitigating the impact of climate change on poor people. Written by Asif Dowla, a noted microfinance expert and professor of economics at St. Mary’s College, the report, Climate Change and Microfinance, points to some of the key poverty-related issues that need to be addressed next week at the United Nations Climate Change Conference in Copenhagen.

Global warming is expected to have the greatest impact on Africa, Asia and Latin America, the regions with the poorest people. For the millions already living on the margins, the shocks—increasingly intense natural disasters, disease outbreaks and falling agricultural productivity—could push them even further into poverty. Noting the active role MFIs already play in these communities, the report highlights challenges facing them, particularly those working in agricultural regions, and provides recommendations for “climate-proofing” their existing services, including offering insurance for the most vulnerable activities.

“Microfinance institutions already provide a vital link to financial security for millions of poor people, making them a valuable intermediary in serving these disadvantaged communities,” said Alex Counts, president of Grameen Foundation. “These institutions’ ability to adapt and adjust to the demands of climate change will, therefore, have a significant impact on their clients and the communities they serve.”

Pointing to the experiences of Grameen Bank in 1998 when two-thirds of Bangladesh was flooded for 13 weeks, MFIs in Central America that faced Hurricane Mitch, and the devastating 2004 tsunami in Southeast Asia, the report offers several core recommendations. To help clients, as well as the institutions, better prepare for and recover from disasters, MFIs should:

Reconfigure loans and savings products and increase availability of health, livestock and other weather-related insurance Introduce and expand the use of renewable energy, such as solar, to relieve energy poverty Develop disaster plans and create disaster funds both at their head and local offices Collaborate with national governments and other civil society organizations to prepare a National Adaption Program of Action.

“Despite the enormity of the problem, the microfinance community has been largely silent about climate change, except for some initiatives focused on green microfinance,” said Asif Dowla, who currently serves as the Hilda C. Landers Endowed Chair in the Liberal Arts Department of Economics at St. Mary’s College. “While these efforts are laudable and should continue, microfinance institutions need to be more proactive in developing long-term plans for natural disasters and other consequences of climate change.”

Source :

Islamic Microfinance

Islamic Microfinance

Islamic banking is one of the fastest growing sectors of the financial industry. But in order for Islamic Financial Institutions (IFIs) to remain competitive with conventional banks, IFIs must be able to deliver specialized products and services to meet customer needs. Microfinance-a division of finance ideologically compatible with Islamic finance, capable of Shariah-compliancy, and possessing a sizeable potential market-is a perfect fit for inclusion in IFIs' new products and services.

Microfinance is comprised mainly of microcredit practices-the extension of very small loans, known as microloans, to those who do not have access to traditional financial services due to lack of collateral, employment and credit history.

Microfinance has a proven history as an economically viable credit program, as well as a proven history of serving customers in the Muslim world. In 1976, Muhammad Yunus, a Muslim Bangladeshi economist and economics professor, founded the Grameen Bank, the world's largest and most successful microfinance institution or MFI. Since its inception, Grameen has provided more than $5 billion in microloans to several million borrowers in the Islamic nation of Bangladesh and boasts a repayment rate as high as 98%. Last year, the institution made a profit of $20 million. Since its creation in 1987, Egypt's National Bank for Development's (NBD) microfinance program has been so successful that the Bank has implemented it in half of its branches. Unlike Grameen, which operates not for profit, Egypt's NBD has proven microfinance to be a profitable venture for private commercial banks in the Middle East.

Microfinance shares the same goals as Islamic finance. Islamic Banking began as an effort for Muslims to engage in financial services consistent with the principles of the Shariah, which promotes social and economic fairness. Likewise, the modern microfinance revolution began as an effort to combat poverty and social injustice in developing countries. Both the principles of Islamic finance and microfinance seek to prevent economic exploitation by prohibiting usury. In 2006, in recognition of the great humanitarian impact of microfinance, the Nobel Committee awarded Muhammad Yunnus and the Grameen Bank the Nobel Peace Prize.

Microfinance is a flexible tool capable of being tailored to satisfy the needs and conditions of various environments, including the Islamic financial sector which forbids riba, or the payment and receipt of interest. The use of interest found in conventional microfinance products and services can easily be avoided by creating microfinance hybrids delivered on the basis of the Islamic contracts of mudaraba, musharaka, and murabaha. For example, in a mudaraba-based transaction, the IFI and the customer may enter into a partnership in which the IFI invests capital in the customer's microenterprise while the customer invests labor. The profits are shared according to a mutually agreed ratio while losses are borne by the IFI. In a musharaka-based transaction, both the customer and the IFI invest capital and share profits according to a mutually agreed ratio; losses are borne in proportion to capital contribution. In a murabaha-based transaction, the IFI purchases a specific good which the customer will purchase from the IFI at a deferred mark-up that may be paid in installments.

Perhaps most alluring to IFIs is the large potential market for Islamic microfinance products and services. There are an estimated 1.3 billion Muslims worldwide, of which over 35% are living in poverty. In the North African and Middle Eastern region alone, there are approximately 4.5 million entrepreneurial poor who lack access to financial services. Of this number, only 112,000, or 2.4 %, of the potential demand are being served. There are only $95 million of outstanding microloans-a fraction of the $1.4 % demand. Egypt, the nation with the most borrowers, barely reaches 5 percent of its potential customer base. Three of the region's countries-Algeria, Iran, and Syria-lack any sort of microfinance program at all.

Islamic microfinance is the perfect opportunity for IFIs to promote the humanitarian principles of Islam, and to make a profit while doing so. Microfinance is a proven success. Shariah-compliant products are feasible. And a huge potential market is waiting to be seized.


Eagle, L. (2009, January 28). Microfinance and Islamic Finance - a Perfect Match. Retrieved December 22, 2009, from­and-­Islamic-­Finance-­-­-­a-­Perfect-­Match&id=1931908

Rural women and microcredit

Rural woman in Morocco

Are women vulnerable group of the population, suffer most from poverty and social exclusion, economic, and women are the victim of a great inequality in utilization of various services (education, health ...) Micro Loans, originally, was addressed primarily to serve women.

Women in rural areas bear the burden of a large part of the tasks and works in agriculture and traditional industry and the White, but that work is unpaid, and studies show that microfinance can contribute to the emancipation of women from economic dependence and play a fundamental role in the autonomy of women, the fact that micro-credit to grant women the self-confidence and helps to strengthen their independence, when women benefit from a small loan Ferencvaros, the project, many aspects of the parallel turn
grow (food, education, health ...) and the project is not only alone.

Fat burning Furnace.Click here

Microfinance in Morocco: Zakoura Fondation

Zakoura fondation

Zakoura fondation (microcredit) the second most important microcredit association in Morocco, It was created in 1995 from a Initiave Moroccan. It operates in urban, peri-urban and rural. This through a fifty performances, it employs 400 employees. The foundation lends mainly to the female population disadvantaged on the basis of a progressive social credit.
Zakoura Foundation was used to end in December 2008, 354 172 active clients, of which 67% are women.
Its funding sources are 70% formed grants and local donations. Thus the public funds dedicated to Hassan II economic and social development (funded by revenue from
privatization) is the main provider of funds with an amount of 3.5 million euros. The balance is covered by a great debt Concessional Moroccan banks. Furthermore, Zakoura has
forged productive links with many international funds (UNDP with the Micro Start program, the European Union, the USAID).
Zakoura microcredit is member in many network like FNAM, SANABEL, SAVE THE CHILDREN,and THE MIX MARKET .

Microfinance in Morocco : Problems and challenges

IMF's in Morocco

After significant development in the sector - Microfinance in Morocco - since its inception in the mid-nineties to now, in recent years started to suffer from problems and new challenges such as:

1 - hardness performance: for after the loan recovery rate exceeding 98%, it currently covers 94% only, to see the advances that began Tqtaa known in the sector recently, and is intended to "benefit the beneficiary and one of several loans by various associations," and this phenomenon is due to the concentration of a number of associations active in this area, close to each other resulting in the intersection of customers, in addition to the absence of a common data and data on beneficiaries has increased portfolio, which is in danger Le port feuille à risqué which exceed 30 days from 0.5% in 2004 to 5% in 2008 or approximately 400 million dirhams, and is working to overcome the National Federation of Microcredit Associations "FNAM" to install the center of the risks of micro-credit associations to avoid popularly customers.

2 - Rising interest rates:
the proportion of the prevailing interest rates in Morocco by the micro-credit associations, which between 13% and 15%, which is very high compared with the situation socio - economic for the poor, and the social objective of these associations, as this ratio remains higher than applicable Balobnak (ranging between 8% and 9%), which is primarily aimed at profit, so it should reduce this ratio to be in line with the status of the poor and enable them to benefit from the services provided by micro-credit associations.

3 - uneven geographic distribution: Keep the geographical distribution of agencies, micro-credit associations is characterized by unequal between the urban and rural area, most of the centers are concentrated in urban areas, with the knowledge that rural areas need significantly to this type of financial services, it is currently 1.4 million customers, we find only 400 thousand customers of the world areas.

4 - Sustainability or agent of continuity: the microcredit associations still depend heavily on grants and contributions for capital to finance its activities, by the organs, organizations and donors, and so the challenge posed by the continuity of the activity of these associations and expanded to include other geographical areas, in addition to the reflections current global financial crisis, the sector has been reflected in the integration of the Assembly of Zakoura with the Foundation for the popular Bank of microcredit in recent times under the name of the association "Zakoura popular" microcredit, and thus it places new challenges to the sector.