Morocco’s Small Business Union Calls for $100 Million Rescue Fund Amid COVID-19 Crisis

The General Union of Businesses and Professions (UGEP) demands a specific rescue plan for Very Small Enterprises (VSEs). In a letter addressed to the Economic Monitoring Committee (CVE), it indicated that the majority of VSEs are in a work stoppage and are going through a critical situation since the advent of covid-19. To support the latter, it recommends the creation of an investment fund of one billion dirhams. The objective of this fund is to support the sustainability of the activity of the selected VSEs and to help them find the path to growth.

In its letter, the UGEP also recommended to integrate into the rescue plan, the need to adapt the "Damane Oxygène" product to the specificities of VSEs. These will not be able to continue their activities at the end of the bank moratorium, as they have a failing cash flow, specifies the letter which requests a 12-month extension of the guarantee for VSEs.

Still in the search for solutions to save VSEs, the UGEP has proposed the pooling of the skills of the Central Guarantee Fund (CCG) to act as a public investment bank. The mission of this entity will be to provide financial support instruments to SMEs and VSEs.