Morocco Microfinance Law 18-97 2026: 150k MAD ceiling and AMC impact

1. Law 18-97: sector overhaul after 27 years

Law 18-97 on microfinance was adopted by Morocco's House of Councillors in January 2026, marking the first major overhaul of the sector since the original 1999 law. The text modernizes a regulatory framework that had become obsolete in the face of evolving needs from micro-entrepreneurs and low-income Moroccan households.

Bank Al-Maghrib (BAM), now the sole regulator of the sector following the dissolution of ANAM, aims to transform microfinance into a genuine financial inclusion tool. The sector currently serves around 980,000 active clients in Morocco, with an outstanding portfolio close to 8.5 billion MAD. Growth potential is estimated at 3 million beneficiaries by 2030.

2. Credit ceiling raised to 150,000 MAD (× 3)

The most emblematic measure of Law 18-97 is the tripling of the individual credit ceiling. It rises from 50,000 MAD to 150,000 MAD per beneficiary, aligning Morocco with peer countries (Tunisia: 40,000 TND, Egypt: 200,000 EGP). This increase responds to a long-standing demand from AMCs, hampered by a ceiling that had become inadequate given inflation and average entrepreneurial project size.

Concretely, the new ceiling opens the door to financing previously inaccessible through microfinance: structured professional equipment (construction tools, production machinery), utility vehicles, and especially social housing micro-credit (renovation, extension, ownership). Microfinance associations will be able to capture intermediate clients underserved by traditional banks.

3. Creation of the Microfinance Joint-Stock Company (SAM)

• SAM minimum capital: 10 million MAD fully paid up
• Joint-stock company status — dividend distribution possible
• BAM license mandatory (sole regulator)
• Client portfolio retention during AMC to SAM transformation
• Opening to institutional investors (IFC, AFD, banks)
• Strengthened governance: board of directors, statutory auditors

Law 18-97 creates a new category of institution: the Microfinance Joint-Stock Company (SAM). Until now, all Microcredit Associations (AMCs) were non-profit associations, required to fully reinvest their surpluses. The SAM introduces a commercial form capable of distributing dividends to its shareholders.

The minimum capital required to establish an SAM is set at 10 million MAD. Existing AMC associations can transform into SAMs, retaining their client portfolio and BAM license. This opening aims to attract institutional investors (banks, impact funds, IFC, AFD) who were reluctant to finance a non-profit-oriented associative form.

4. AMCs can now receive savings deposits

Major innovation of Law 18-97: licensed AMCs and SAMs are now authorized to collect savings deposits from their clientele. This provision transforms microfinance into a quasi-inclusive bank, allowing institutions to finance their growth through their own clients' resources, rather than solely via bank credit lines.

For micro-entrepreneurs or modest households, the impact is twofold: access to a savings account at an AMC point of sale often closer than a bank branch, and benefit from cross-selling credit + savings + Takaful insurance. Direct competition with retail banks on the bottom-of-the-pyramid segment becomes head-on.

5. Timeline: effective date January 1, 2027

Law 18-97 was adopted by the House of Councillors in January 2026 and published in the Official Bulletin during March 2026. Its effective entry into force is set for January 1, 2027, leaving AMCs and BAM 18 months to publish implementing decrees, overhaul information systems, and support the transformation of willing associations into SAMs.

The regulatory calendar provides for publication of BAM circulars (SAM licensing conditions, prudential standards, solvency ratios) in Q3 2026, then submission of transformation files in Q4 2026. The first licensed SAMs should be operational from Q1 2027.

6. 4 AMCs candidates for SAM transformation

• Al Amana Microfinance — leader 38% market share, confirmed SAM candidate
• FBPMC (Banque Populaire Foundation) — planned subsidiary within BCP
• Tamwil El Fellah — file submitted, rural and agricultural focus
• ARDI (Credit Agricole Foundation) — strategic alignment with CAM
• 9 other AMCs — likely associative status quo in the short term
• Expected concentration: 4 SAMs = 75% national portfolio by 2028

Of the 13 AMCs currently licensed in Morocco, 4 major players have publicly declared their intention to transform into SAMs: Al Amana Microfinance (leader with 38% market share), Fondation Banque Populaire pour le Micro-Crédit (FBPMC), Tamwil El Fellah (Credit Agricole du Maroc subsidiary dedicated to rural areas), and ARDI (Credit Agricole Foundation). Together, these 4 players represent more than 75% of the national outstanding portfolio.

The remaining 9 AMCs — often small or specialized (Attawfiq Micro-Finance, INMAA, AMSSF, etc.) — are mostly expected to keep their associative status, at least initially. The 10 MMAD minimum capital and governance requirements create a barrier for the most modest structures.

7. Impact on social housing credit

Tripling the ceiling to 150,000 MAD opens a new strategic segment: social housing micro-credit. Until now, modest households could only finance minor work through AMCs (5,000 to 30,000 MAD). With 150,000 MAD, it becomes possible to finance a significant extension, major renovation, or even a personal contribution for social housing at 250,000 MAD.

This positioning complements the offer of traditional banks (Dar Assafaa, Umnia, Bank Al Yousr in Islamic finance) which rather target real estate credit 300k-800k MAD. The 2027 SAMs will target the 80k-150k MAD segment, poorly covered today, with durations extended to 84 months and lighter guarantees (joint surety, savings pledge).

8. Competition: SAMs vs neobanks and traditional banks

• SAM 2027: 1,800 points of sale + informal scoring + 150k ceiling
• Traditional banks: capital, low rates, but rural weakness
• Neobanks (CIH Mobile, Bank Yo): mobile-first, lacks physical presence
• Islamic finance (Dar Assafaa, Umnia, Bank Al Yousr): Murabaha segment
• SAM cross-sell: credit + savings + mandatory Takaful
• Likely winner: hybrid SAM (Al Amana, FBPMC) tech + network

The entry into force of Law 18-97 reshapes competition on the bottom-of-the-pyramid segment. The 2027 SAMs will simultaneously face retail banks (Attijariwafa Bank, BCP, BMCE, CIH) moving downmarket via their dedicated subsidiaries, and emerging neobanks (CIH Mobile, Bank Yo by BMCE Capital) targeting inclusion via mobile-first.

The differentiating advantage of SAMs remains their territorial network (more than 1,800 AMC points of sale in Morocco, 60% of which in rural or peri-urban areas) and their expertise in informal scoring. Banks have capital strength but struggle in the deep rural. Neobanks have tech agility but lack physical presence for non-banked profiles.