2 days ago
Morocco's Forsa Program Faces Criticism Over Implementation Issues
Rabat — Morocco's Forsa entrepreneurship program, launched in 2022 with a budget exceeding MAD 1.25 billion ($138.278 million), faces growing criticism over structural problems affecting young entrepreneurs.
The government launched the program to support business creation through interest-free loans, but implementation challenges have sparked widespread complaints from beneficiaries and oversight institutions.
Morocco's Ombudsman Hassan Tarik reported receiving 500 complaints about the program, citing unexplained exclusions and complex procedures that have frustrated many applicants.
The Ombudsman's office identified several concerning patterns, including the classification of beneficiaries as entrepreneurs without providing them with corresponding financial support.
These findings have raised questions about the program's effectiveness in achieving its stated goals of supporting youth entrepreneurship.
Beyond administrative issues, beneficiaries have raised concerns about the program's fundamental structure. Local media have reported that Radwan Ashuhham of the Moroccan Association for Young Entrepreneurs' Rights, which represents hundreds of affected young people, explained that the loan-based approach creates significant challenges.
The association has also reportedly documented how external factors have compounded these difficulties. Climate-related challenges have particularly affected agricultural projects, with extreme temperatures and frost causing livestock stress and deaths.
Meanwhile, industrial and commercial ventures have faced insufficient funding coverage, hampering their ability to expand and grow as intended.
These mounting concerns have reached Morocco's Parliament, where lawmakers have reportedly expressed frustration with implementation delays and administrative complications affecting thousands of applicants.
In response, Parliament formed a fact-finding mission to conduct a comprehensive evaluation of the program and examine the various problems that have emerged since its launch.
Despite the criticism, government officials maintain that the government program has achieved significant results. Minister Fatim-Zahra Ammor reported that Forsa has funded approximately 21,000 projects, creating nearly 37,000 jobs, with 44% held by women.
The program received over 300,000 projects across two years, with about 10,000 projects funded in the first phase and 11,200 in the second. These statistics suggest strong demand for entrepreneurship support, even as implementation challenges persist.
In response to the various criticisms, the entrepreneurs' association has proposed several reforms to address the program's shortcomings.
Their recommendations include integrating beneficiary projects into existing support programs for cooperatives and companies, rescheduling loans based on individual project situations, and providing exemptions for projects that have declared bankruptcy.
They have also called for better support systems to help entrepreneurs navigate the challenges of starting and maintaining their businesses.
Looking back at the program's origins, Forsa originally aimed to provide up to MAD 100,000 ($11,062) in interest-free loans to entrepreneurs over 18, with 10-year repayment terms and no guarantee requirements.
The ambitious initiative was positioned as a solution to the difficulties young people face in accessing traditional financing sources and the obstacles encountered by very small enterprises.
As the parliamentary investigation continues and reform proposals circulate, the future of Morocco's Forsa program remains uncertain.
The gap between official success metrics and beneficiary experiences features the complex challenges of implementing large-scale entrepreneurship support initiatives, particularly in ensuring that well-intentioned programs deliver meaningful benefits to their intended recipients. Tags: entrepreneurshipForsa programyoung entrepreneurs
