Money sent by MREs will now count toward obtaining credit in Morocco

The project was presented to the Board of Directors of the International Fund for Agricultural Development (IFAD), which met on September 15 in Rome. It targets families living in rural and peri-urban areas who regularly receive money from relatives living abroad but remain excluded from conventional bank credit.

The mechanism will not automatically guarantee that a loan is granted. It provides for the creation, with Salafin, the consumer-credit subsidiary of the Bank of Africa group, of a small loan specially adapted to transfer beneficiaries. An assessment method taking into account sums received from abroad will be incorporated into the review of their application.

The project is intended to support 4,000 eligible people through this procedure. One hundred Damane Cash service points, including 50 branches and 50 partner retailers, will be equipped to provide customers with information and help them submit their applications.

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This development comes as most of the money sent by MREs is still used for families’ day-to-day expenses. According to IFAD, Morocco received approximately 13 billion dollars in transfers in 2025, equivalent to nearly 8% of its gross domestic product.

Credit, payment cards and life insurance

Credit represents only one part of the program. Damane Cash plans to open an account or electronic wallet for 12,000 beneficiaries and distribute 4,000 payment cards. At least 70% of those enrolled will then have to carry out a first transaction or actively use their account.

Life insurance for families receiving money from abroad will also be developed with Royale Marocaine d’Assurance (RMA). It is to cover 2,000 beneficiaries and offer a digital process ranging from subscription to the reporting of a claim, including the designation of the beneficiary and renewal of the contract.

The document presented to the IFAD Board of Directors cites Khouribga, Béni Mellal, Fquih Ben Salah and Figuig among the municipalities likely to host this pilot project. One or two regions will be definitively selected after a study aimed at identifying areas receiving substantial transfers and that can be served by the Damane Cash network.

Priority is to be given to women, low-income households and people who have never used formal financial services. At least half of the direct beneficiaries must be women.

The program also plans to support 10,000 people through financial education sessions, information campaigns and messages sent by SMS or WhatsApp. The Moroccan Foundation for Financial Education, created at the initiative of Bank Al-Maghrib, will participate in this component.

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The project is to last two years and cost 317,000 euros. IFAD plans to provide a grant of 221,000 euros, while Damane Cash will contribute 96,000 euros. Salafin will separately finance the loans granted, and RMA will provide the capacities required for the new insurance product.