The Significance of Having a Bank Account Stressed by Máxima During her Tour in Morocco

• Samira Jadir

  correspondent Morocco

Queen Máxima paid a four-day visit to Morocco for her position at the United Nations. The international organization is committed to the financial digitization of the North African country, where most people still prefer to pay with cash.

Máxima started in Casablanca, the economic capital of Morocco. Although it is known as the city of big money, the Queen mainly focuses on small entrepreneurs, especially women.

It is precisely among them that there is a great deal of distrust towards financial institutions. Cash savings seem like a better idea to many than opening a bank account. But on the other hand, banks are also unwilling to let people without a legitimate income open a bank account with them.

However, things have changed in the country in recent years. About 44 percent of Moroccans now have a bank account, compared to 29 percent three years ago.

“Morocco’s aim is for them to reach 50 percent at the end of the year,” Queen Máxima told NOS. “But of course we want to go for 100 percent.”

This month, Morocco will receive a $400 million loan from the World Bank to promote inclusive finance and digital entrepreneurship. Morocco previously received two loans to boost digital finance. For example, the money will be used to expand the availability of financial services and digital infrastructure for private individuals and companies.

There is still a long way to go for the middle class. For example, entrepreneur Ismael Belkhayat says that 97 percent of grocers in Morocco do not have a bank account. They work with cash almost without exception. As a result, the shop owners are not eligible for a loan, cannot expand, and cannot take out insurance.

Belkhayat runs the wholesaler Chari, with which he supplies groceries to the countless grocery stores in Casablanca. This so-called hanouts are indispensable for the local residents. He developed an app for these small local shops, so that they can order from him more easily. “But they can also use it as a cash book. Because all those shops are actually a kind of small banks in themselves, because people often buy stuff on credit.”

But it is mainly the women in Morocco who are lagging behind in opening a bank account. They often do work, but are paid black money for it.

It is precisely this informal payment that leads to banks not wanting to provide loans to women, which prevents them from expanding their trade. The Arrawaj Foundation does provide them with financial support. They do this by providing credit loans and insurance to small entrepreneurs. The microcredits start at 500 euros and go up to 5000 euros.

The importance of such loans is evident from the story of Loubna Laqioud. She is a biscuit baker in the capital Rabat, but lost all her baking equipment in a fire. Thanks to the loan and the associated insurance that the foundation took out for her, she was able to rebuild her business.

“If I hadn’t had that insurance, I would now not only have no income, but also a debt to the foundation,” she says.

There is still a mentality in Morocco that things in life cannot be avoided. Taking out insurance against this therefore seems pointless to many Moroccans. Moreover, these are extra fixed costs that the average Moroccan wants to spend on something else at the end of the month.

Queen Maxima: “We have to remedy that mutual mistrust by devising an ecosystem where everyone can have that trust. But what is especially important is that people don’t end up on the street if something happens to them.”