Early Warning System

Countries

Morocco

Geographic location where the impacts of the investment may be experienced.

Financial Institutions

European Bank for Reconstruction and Development (EBRD)

International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.

Project Status

Approved

Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.

Bank Risk Rating

Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."

Voting Date

Jul 1, 2025

Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.

Borrower

FONDATION ARRAWAJ DE LA FINANCE INCLUSIVE

A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.

Sectors

Finance
Industry and Trade

The service or industry focus of the investment. A project can have several sectors.

Investment Type(s)

Loan

The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.

Investment Amount (USD)

$ 12.26 million

Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Currency conversion note:
Bank reported 110
Converted using 2025-07-01 exchange rate.

Project Cost (USD)

$ 12.26 million

Bank Documents

PSD Translation (French)

Primary Source

Original disclosure @ EBRD website

Updated in EWS Aug 11, 2025

Disclosed by Bank Jun 29, 2025

Contribute Information
Can you contribute information about this project?
Contact the EWS Team

Project Description

If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to the Bank’s website, the project consists of the provision of a senior unsecured loan in the amount of up to EUR 10 million equivalent in local currency (MAD 110m) in favour of Fondation Arrawaj under the Youth in Business ("YiB") programme to support private Moroccan MSMEs owned or led by young entrepreneurs under 35 years of age, with a focus on the ones located in the regions affected by the 8th September 2023 earthquake.

The project aims at opening up economic opportunities of underserved Moroccan young entrepreneurs, building on the idea that MSMEs owned or led by Youth under 35 years of age represent a unique market opportunity for the Moroccan financial sector and a unique vehicle to increase financial inclusion. Furthermore, the project will also contribute to the recovery and the reconstruction of the region affected by the September 2023 earthquake by leveraging on Fondation Arrawaj's unique outreach in the region.

Early Warning System Project Analysis

For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

Categorised FI (ESP 2024). Fondation Arrawaj, an existing client, has demonstrated satisfactory environmental and social (E&S) performance under its current exposure. The proceeds will be used for the FIF Youth in Business programme, on-lending to eligible youth led/owned MSMEs, which is considered low risk from an E&S perspective.

Investment Description

Here you can find a list of individual development financial institutions that finance the project.

European Bank for Reconstruction and Development (EBRD)

A senior unsecured loan in the amount of up to EUR 10 million equivalent in local currency (MAD 110m).

Financial Intermediary

A financial intermediary is a bank or financial institution that receives funds from a development bank. A financial intermediary then lends these funds to their clients (private actors) in the form of loans, bonds, guarantees and equity shares. Financial intermediaries include insurance, pension and equity funds. The direct financial relationship is between the development bank and the financial intermediary.

FONDATION ARRAWAJ DE LA FINANCE INCLUSIVE (Financial Intermediary)

Private Actors Description

A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

Founded in 1996 under the name "FONDEP", Fondation Arrawaj is the third largest microfinance institution in Morocco. As of end of March 2025, Fondation ARRAWAJ managed total assets nearing EUR 200 million, held a lending market share of 19% and employed 1,942 staff across its headquarter and 256 branches in 15 regions of Morocco, serving close to 120,000 clients nationwide.

Contact Information

This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

COMPANY CONTACT INFORMATION

Nada Fassi-Fehri
https://www.fondation-arrawaj.ma/
Imm. Saraya, angle Bd. Riad et Av; Al Arz Hay Riad RABAT 10100- Maroc, Rabat, Maroc

ACCESS TO INFORMATION

You can request information by emailing: accessinfo@ebrd.com or by using this electronic form: https://www.ebrd.com/eform/information-request

ACCOUNTABILITY MECHANISM OF EBRD

The Project Complaint Mechanism (PCM) is the independent complaint mechanism and fact-finding body for people who have been or are likely to be adversely affected by an European Bank for Reconstruction and Development (EBRD)-financed project. If you submit a complaint to the PCM, it may assess compliance with EBRD's own policies and procedures to prevent harm to the environment or communities or it may assist you in resolving the problem that led to the complaint through a dialogue with those implementing the project. Additionally, the PCM has the authority to recommend a project be suspended in the event that harm is imminent.

You can contact the PCM at: pcm@ebrd.com or you can submit a complaint online using an online form at: http://www.ebrd.com/eform/pcm/complaint_form?language=en

You can learn more about the PCM and how to file a complaint at: http://www.ebrd.com/work-with-us/project-finance/project-complaint-mechanism.html