Announcement of World Bank Assists Small Industries in Morocco on April 16, 1979

. . .. FOR IMMEDIATE RELEASE •World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 79/75 April 16, 1979 WORLD BANK ASSISTS SMALL INDUSTRIES IN MOROCCO The World Bank has approved a $25 mill ion loan to assist Morocco's first integrated small industry development program. The development of small industries has been given high priority by tbe Government of Morocco. They provide employment at lower cost per job than large industries and foster opportunities for entrepreneur- ship, particularly for skilled immigrant workers returning from abroad. They also stimulate integration of the industrial sector, and help develop an industrial base in less developed regions of the country. The $42.5 mill ion project will help finance the first two years of a • long-term government program of assistance to small industries. It covers investments made by small industries and financed through a new-ftnanctal assistance scheme involving commercial banks and Banque Nationale pour le Developpement Economique. The scheme includes a guarantee mechanism that would facilitate access to institutional financing for small industries, which generally have insufficient collateral. The project also includes technical assistance to be carried out by Office pour le Developpement lndustriel and promotional activities for the benefit of small industries. Some 200 small industries will benefit from the project. At least 5,000 jobs will be created at an average cost of about $8,000 per job, or about one third of the average cost per job created in the manufacturing sector during the Third Plan (1973-77). In the long term, the project will help build institutions to help the smal 1 industry sector. The World Bank loan is for 15 years including 4 years of grace and carries interest at 7% per annum. Of the loan amount, $24 million will be re-lent to small industries by Banque Nationale pour le Developpement Economique (P.O.Box 407, Rabat, Morocco; Cable: BADMAROC, Rabat; Telex: 31942, Rabat) and commercial banks . • NOTE: Money figures are expressed in U.S. dollar equivalents.