Half of SMEs are deprived of formal financing: A structural crisis that threatens economic growth

Economy of the East

Small and medium-sized enterprises (SMEs) are the backbone of the Moroccan economy, actively operating in vital and strategic sectors such as textiles, food, and automotive. They not only provide employment and innovation, but also contribute to the integration of the national economy into global value chains. However, the realities of the East and other regions present a complex and uneven picture when it comes to financing possibilities.

Half of organizations are deprived of official funding

A study conducted by the Banque Européenne d'Investissement (BEI) as part of the EU-funded Competitiveness and Trade Program revealed a painful truth about the state of finance in Morocco. The results showed that nearly half of SMEs do not have access to formal financing. Of the 150 business leaders questioned, only 49% were able to obtain loans from financial institutions, while 35% were forced to seek funding from informal sources such as family, friends and personal networks that remain risky, unsustainable and inadequate for the huge needs of growth. Worse still, 15% of enterprises faced outright rejection, reflecting the deep gap between the needs of the national enterprise base and the actual supply of the financial sector.

Strict banking requirements and complex administrative hurdles

The challenges go beyond access to finance alone. SMEs complain of overly stringent banking requirements that hinder their growth. 57% officials assert that interest rates are unreasonably high, while 50% believe that the collateral required is excessive and beyond the organizations' capabilities. Moreover, 26% believe that their own funds are always assessed as insufficient. In addition to these financial barriers, organizations face multiple administrative barriers that further complicate the situation. 53% described administrative procedures as complex and cumbersome, 27% lamented the lack of support and accompaniment, and 26% cited a lack of information about available mechanisms and programs. All these physical and non-physical barriers deepen the state of financial exclusion even for organizations that have the capacity to survive and grow.

Underfunding hinders export ambitions

Financing has a direct and critical impact on an organization's ability to access international markets and export. More than a third of officials see a lack of finance as a major barrier to expanding their export activities. Indeed, 40% enterprises already export, but on a very limited scale, as they lack the financial resources to meet the quality standards, logistics, and certification requirements of foreign markets. This reality makes it difficult for Moroccan enterprises to compete globally or deepen their export flows.

Sharp contrast with Europe: Different investment priorities

The European landscape provides a very different picture. According to the European Bank's 2025 Investment Survey, EU institutions invested 86% in 2025, focusing on clear priorities: 43% in replacing old assets rather than expanding production capacities, which amounted to only 26%. In contrast, the US has a capacity expansion rate of 37%, reflecting a more optimistic and bold ambition. The difference is substantial: While European and American companies are investing in energy efficiency, green transformation and digitization, Moroccan enterprises are trapped in trying to secure their financial survival, reflecting a serious structural lag.

The Technology Gap and Artificial Intelligence

The technological gap between Morocco and European countries is widening alarmingly. 50% of European companies use advanced technologies, while 37% have adopted generative AI. The US shows a more optimistic indicator with 81% of US companies using AI in at least two internal processes, compared to only 55% in Europe. However, Moroccan enterprises, especially those operating in strategic sectors such as textile, food, and automotive, lack the financial and technical resources to take advantage of these digital transformations and AI that could give them a real competitive advantage in the global market.

Competitiveness and Trade Program: A glimmer of hope

The Competitiveness and Trade Program offers a promising model. Led by the European Investment Bank and the European Union, the program offers joint guarantee mechanisms aimed at reducing the perceived risk of local financial institutions. Through this apparatus, preferential interest rates, relaxed collateral requirements, and comprehensive technical accompaniment are provided to SMEs. In Morocco, the collaboration between the program and the Bank of Casablanca has successfully established a dedicated credit line for exporting enterprises, a practical and effective response in line with good practices in Europe, with 16% enterprises benefiting from targeted policy support, especially in the areas of green transition (41%) and innovation (29%).

Although European and Moroccan organizations face similar barriers in some aspects, the intensity and impact of these barriers differ substantially. In Europe, the main barriers are uncertainty at 83%, lack of skills at 79%, and high energy costs at 75%. In Morocco, financing itself remains the first and most inevitable barrier, followed closely by unfavorable banking conditions. The difference is stark in the financial stress index: While only 6.1% of European organizations are severely financially constrained, nearly 50% of Moroccan organizations face this harsh reality. This gap highlights the urgent need to adapt national fiscal policies to the realities of emerging markets and the limited capacities of SMEs, the backbone of the Moroccan economy.