Morocco has just launched, with the support of the AfDB, an ambitious program to stimulate entrepreneurship, strengthen SMEs, and create jobs, with a particular focus on young people, women, and rural areas. The announced funding is part of a broader strategy to reform the labor market and support sustainable employment.
A Strong Signal for Youth Employment
Information published by APA News indicates that the AfDB has approved €200 million in funding to support this extensive program in Morocco. According to details in the specialized press, the PAFE-Employment initiative aims to make entrepreneurship an engine of job creation and address the weaknesses of the Moroccan labor market, where unemployment reaches 13%, with nearly 30% among young people.
What the program entails
The program is based on three main pillars: technical support for entrepreneurs, access to financing for SMEs, and improved operational monitoring. It also aims to increase the share of SMEs in GDP from 30% to 35% by 2026, while creating 220,000 jobs by 2026. The annual coverage of financed SMEs is expected to increase from 45,000 in 2024 to 50,000 in 2026.
An inclusive approach
The program covers all twelve regions of Morocco and prioritizes young people, women, and rural populations. It includes project initiators, existing businesses, and even self-employed individuals from the informal sector. Special emphasis is placed on women’s entrepreneurship, with the goal of supporting 8,000 women entrepreneurs through the AfDB’s Afawa initiative by 2026.
Why this matters
This type of financing is important because it goes beyond simply injecting money; it seeks to structure a job creation ecosystem. In a context where a large proportion of young people struggle to enter the job market, supporting entrepreneurship can become a concrete lever for economic inclusion. For Morocco, it is also a way to strengthen the role of SMEs in growth and formal employment.
The PAFE-Employment program is based on three priorities
First, strengthening support for entrepreneurs. Second, improving access to financing for project promoters and small businesses. Finally, optimizing program monitoring to maximize its impact. In practice, the program also aims to increase the number of SMEs funded, from 45,000 in 2024 to 50,000 in 2026.
The program covers all twelve regions of the Kingdom and prioritizes young people, women, rural residents, and self-employed individuals in the informal sector. Women’s entrepreneurship receives particular attention, with a target of supporting 8,000 women entrepreneurs by 2026 through the Afawa initiative.
