Government launches new support mechanism for SMEs

Economy of the East

The Moroccan government launched on Tuesday, November 11, 2025, a support mechanism for micro, small and medium-sized enterprises (MSMEs), in a move aimed at boosting job creation and reducing regional disparities. The new mechanism was launched in the city of Rachidia, where Prime Minister Aziz Akhannouch oversaw the ceremony dedicated to this initiative, which is led by the investment sector in partnership with national and regional actors.

The support mechanism targets businesses with a turnover of between AED 1 million and AED 200 million during one of the last three years, as well as businesses that have been active for no more than three years. The capital of the beneficiary enterprise must not be owned by more than 25% for a company with an annual turnover of more than Dh200 million, and excludes enterprises with a partner or legal shareholder subject to public law or a public enterprise.

Subsidy eligibility requirements

The mechanism establishes specific criteria for accepting investment projects. The total investment must equal or exceed 1 million dirhams but not exceed 50 million dirhams. It is also required that the continent's job positions represent at least 1.5% of the total positions created, and that self-financing constitutes a minimum of 10% of the total investment.

The project must fall within the areas allocated to each entity by a decision of the Prime Minister. The subsidy does not apply to investment projects that are the subject of an investment agreement with the state under another mechanism that offers similar privileges.

Decentralized regional governance

The Prime Minister explained that the new mechanism is regional in nature, as regional investment centers will oversee the implementation of the program by continuously following up with businesses wishing to benefit from it. This includes the preparation of applications until the granting of subsidies.

All procedures are carried out at the regional level, from the filing of applications and their examination by the regional investment centers, through the selection and approval of selected projects, to the signing of agreements by local authorities and the disbursement of financial support to the beneficiary projects.

Three types of aid

The mechanism provides three forms of support that can be combined up to 30% of the total amount of eligible investment. These include Continental Job Creation Assistance, Territorial Assistance, and Assistance for Priority Activities. These subsidies can also be combined with those provided by the regions to support entrepreneurship and investment attractiveness.

The grant for continental job creation is based on the project's ability to create jobs. The subsidy can represent 5%, 7% or 10% of the total value of the eligible investment, depending on the proportion of continental jobs to be created.

Territorial Assistance is intended to channel investment to regions and communes with investment deficits, which are pre-determined by the Prime Minister. The subsidy amounts to 10% or 15% of the eligible investment amount, with the subsidy rate varying between 10% and 15% depending on the regions and communes, while the traditional investment axis is excluded from territorial assistance.

Priority Sectors

The Priority Sector Subsidy is for investment projects in activities that represent national economic and social priorities, promote innovation and transition towards a green and sustainable economy, with a contribution of 10% of eligible investment.

The prime minister has identified a list of 88 priority activities, spread across 33 categories, including agriculture, forestry, fisheries, manufacturing, water production and distribution, waste management and treatment, and decontamination. These include agriculture, forestry and fisheries, manufacturing, water production and distribution, waste management and treatment, transportation and storage, accommodation and catering, as well as traditional industry.