Meknes, Morocco, April 26, 2018—IFC,
a member of the World Bank Group, and Groupe Crédit Agricole du Maroc (GCAM),
a major Moroccan bank, signed an agreement today to help farmers and agribusiness
companies gain access to modern equipment, part of an effort to support
the country’s agriculture industry.
IFC will advise the bank’s planned subsidiary,
CAM Leasing, as it designs its strategy, business model, and customer value
proposition in order to reach out to farmers across the country. CAM Leasing
will focus on several sectors, including agriculture, where it will provide
products oriented towards farmers and agribusinesses. It will benefit from
IFC’s expertise and from its Africa Leasing Facility to develop its strategy
and define leasing products that will suit the needs of Moroccan farmers.
Adding leasing products and services to the offering will benefit GCAM’s
customers by leveraging this new source of financing to modernize their
equipment and production facilities.
GCAM serves 2 million clients spread out
in the country, half of whom are located in rural areas.
More than a third of all Moroccans rely on
farming for their livelihoods and agriculture is responsible for 13 percent
of the country’s gross domestic product. Yet many small-hold farmers,
who own 80 percent of farm-related businesses, often lack access to financing
and leasing services.
“Leasing can help local businesses grow
by providing access to finance without the collateral required for traditional
said Garth Bedford, IFC Advisory Services Manager for the Financial Institutions
Group in the Middle East and North Africa. “Modern equipment can help
small farms become more productive and boost profits, helping Morocco’s
agriculture sector modernize and grow sustainably.”
Over the past 40 years, IFC has supported
240 leasing projects in 60 countries and helped set up leasing companies
in over 30 countries.
This project was made possible with the support
of the MSME Technical Assistance Facility in MENA, a joint initiative between
IFC and the World Bank. The facility is supported by the Canadian Department
of Foreign Affairs, Trade, and Development, the Danish International Development
Agency, Japan, Switzerland’s State Secretariat for Economic Affairs, and
About Crédit Agricole du Maroc Group (CGAM)
Since its creation in 1961, GCAM’s mission
has been to foster economic and social development in rural regions, and
to help farmers and rural residents access the banking system through adapted
financial services. GCAM has developed specific offers to address the different
market segments through dedicated subsidiaries, including, Tamwil El Fallah,
to finance small and medium-sized farms, and the ARDI Foundation for microfinancing
services in rural areas.
IFC—a sister organization of the World Bank
and member of the World Bank Group—is the largest global development institution
focused on the private sector in emerging markets. We work with more than
2,000 businesses worldwide, using our capital, expertise, and influence
to create markets and opportunities in the toughest areas of the world.
In FY17, we delivered a record $19.3 billion in long-term financing for
developing countries, leveraging the power of the private sector to help
end poverty and boost shared prosperity. For more information, visit www.ifc.org