Agricultural credit and farm financing in Morocco
In Morocco, farmers mainly borrow from Crédit Agricole du Maroc and its subsidiary Tamwil El Fellah, combining seasonal or investment credit with grants from the Agricultural Development Fund and MAMDA climate insurance.
Crédit Agricole du Maroc, the public bank of rural Morocco
Crédit Agricole du Maroc finances cereal growers, livestock breeders and fruit growers in every region, with a public service mission. It covers the large estates of the Souss and the Gharb as well as small farms in the Rif and Atlas mountains.
Tamwil El Fellah for smallholders
The subsidiary Tamwil El Fellah targets small farmers with no access to conventional bank credit. It accepts more flexible guarantees and finances seeds, fertiliser, small livestock and modest irrigation equipment for family farms.
Generation Green 2020-2030
The Generation Green strategy succeeds the Green Morocco Plan and aims to build an agricultural middle class and a generation of young rural entrepreneurs. It notably provides for making collective land available to projects led by young people.
Agricultural Development Fund grants
The FDA subsidises drip irrigation, farm machinery, plantations and some livestock buildings. The grant is paid after completion, which often forces the farmer to pre-finance the whole investment with a bank loan.
Seasonal credit and investment credit
Seasonal credit finances one growing season and is repaid at harvest, for example citrus from Souss-Massa or olives from the Fez-Meknes region. Longer-term investment credit pays for a borehole, greenhouses or a tractor.
MAMDA multi-risk climate insurance
The Moroccan Agricultural Mutual Insurance company offers cover against drought, hail and frost, with a premium that is partly subsidised by the state. Banks often require it before granting a seasonal cereal loan.
Drought and debt rescheduling
Successive drought years have weakened many farmers. During difficult seasons, the state and Crédit Agricole have introduced rescheduling measures, which are never automatic, however, and have to be requested by the borrower.
Farmland: melk, collective land and titles
Unregistered melk land, collective land and guich land complicate the use of a mortgage. Law 62-17 opened the way to converting collective land into private ownership, which can allow some rights holders to obtain a title and then a loan.
Al Akhdar Bank for participative financing
Al Akhdar Bank, the participative bank of the Crédit Agricole group, offers Murabaha to buy equipment or farm inputs. It serves farmers who prefer a margin fixed in advance to an interest rate.
Rural microcredit and Fondation Ardi
For a small livestock or beekeeping activity, Moroccan microcredit, particularly from Fondation Ardi, is often easier to obtain. The guide to credit in Morocco places these players within the overall financial system of the country.
Cooperatives and aggregation
Aggregation links small producers to a processing or export unit that supplies inputs and guarantees sales. Olive oil, argan or milk cooperatives can thus obtain collective credit more easily than a farmer working alone.
A look at Algerian agriculture
Algeria finances its farmers through BADR and subsidised loans such as the Rfig credit. Our guide to the farmer loan in Algeria presents these tools, which differ from the Moroccan pairing of bank credit and FDA grants.
Financing a farming project in Morocco
- Define the project with support from the National Office for Agricultural Advice or the local ORMVA.
- Check eligibility for FDA grants and prepare the technical file with quotes and an irrigation plan.
- Submit a loan application to Crédit Agricole du Maroc, Tamwil El Fellah or another bank.
- Provide proof of land rights: land title, collective land certificate or tenancy agreement.
- Take out MAMDA insurance suited to the crop, make the investment and then claim the grant payment.
Charges linked to an agricultural loan in Morocco
| Item | Benchmark | What makes it vary |
|---|---|---|
| Loan rate | According to the bank's scale, below the TMIC | Loan type, guarantees, farmer profile |
| Pre-financing of the FDA grant | Share of the investment advanced by credit | Grant rate and payment delay |
| Multi-risk climate insurance | Premium partly subsidised, indicative | Crop, region, insured area |
| Arrangement fees | According to the price list | Amount and type of project |
| Guarantee | Mortgage, pledge or personal guarantee | Legal status of the land |
Papers for a Moroccan farm credit application
- Farmer's CNIE
- Land title, certificate of collective land rights or lease
- Farmer certificate or farmer card
- Quotes for equipment or irrigation system
- FDA grant file where applicable
- Record of crop or livestock sales
Mistakes that penalise farmers who borrow
- Starting the investment before prior FDA approval when it is required, which can mean losing the grant.
- Borrowing for an irrigated crop without a pumping permit or a secure water supply, a risk worsened by drought.
- Neglecting climate insurance, then having to repay a seasonal loan after a lost harvest.
- Paying a fake middleman who promises to speed up agricultural grant payments in return for a commission.
Lenders to contact
- BMCI: Moroccan commercial retail bank active in providing financing solutions to individuals and businesses across the Moroccan market.
- Bank Assafa: Moroccan participative bank offering Sharia-compliant accounts and financing, including home Murabaha for individuals wishing to purchase residential property.
- Banque Populaire (Groupe BCP): Moroccan commercial bank offering individuals consumer credit products, including the Moujoud loan and personal car financing options for retail customers.
Answers for farmers in Morocco
Can you get a farm loan without a land title?
It is possible with Tamwil El Fellah or through microcredit, using other guarantees such as a personal guarantee or a pledge on equipment. For a large investment, the bank generally asks for registered property to mortgage.
Is the FDA grant paid before the work starts?
Generally not, it is paid after the investment has been completed and inspected. The farmer must therefore pre-finance the project, often with a bridging loan from Crédit Agricole du Maroc or another bank.
Do young rural people have specific access to financing?
The Generation Green strategy includes measures for young agricultural entrepreneurs, including access to collective land. They can also target Tamwilcom programmes such as Intelaka for a farming or rural services business.
What should a farmer do after a drought year?
Contact the bank quickly to request rescheduling and check the measures announced by the state for the season. A MAMDA payout may also cover part of the losses if the insurance had been taken out beforehand.