Germany prepares €101 million funding package for women entrepreneurs in Morocco

Germany is preparing a €101 million financing package

to support women’s entrepreneurship in Morocco,

in a major initiative aimed at improving access to funding for women-led businesses.

The program is being developed by the German development bank KfW in partnership with Tamwilcom.

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The package includes:

€100 million in loans

€1 million in grants

and is expected to launch in the second quarter of 2027 for a period of five years.

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The initiative comes at a time when Morocco faces a major economic paradox.

Although Moroccan women now surpass men in higher education enrollment,

their labor force participation rate has fallen from 28% in 2000 to just 19% in 2024.

The gap with men has reached nearly 50 percentage points, one of the highest levels worldwide according to the World Bank.

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Access to finance remains one of the biggest obstacles.

Today, only 14% of formal businesses in Morocco are led by women,

while nearly 47% of companies employ no women at all.

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The program aims to encourage banks and financial institutions

to provide more financing to small and medium-sized enterprises

owned or managed by women,

while also increasing awareness of existing guarantee mechanisms available to entrepreneurs.

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Beyond gender equality,

the initiative is also seen as an economic growth opportunity.

According to estimates cited in the project,

removing barriers to female entrepreneurship could increase women’s income by 6%

and raise Morocco’s overall national income by 1.3%.

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In summary

Germany plans to mobilize €101 million to strengthen female entrepreneurship in Morocco,

helping women gain better access to financing and unlocking a significant source of economic growth for the country.