Casablanca – Morocco and the African Development Bank (AfDB) have launched a new results-based program aimed at strengthening entrepreneurship and accelerating job creation, as part of broader national efforts to promote inclusive and sustainable economic growth.

The program, officially titled the Entrepreneurship and Employment Support and Financing Program (PAFE-Emplois), was unveiled in Rabat during a high-level workshop that brought together representatives of the AfDB Group, Moroccan public institutions, technical and financial partners, and the teams responsible for implementation. The initiative is designed to improve access to financing for entrepreneurs, strengthen public support mechanisms, and align investment more closely with employment outcomes.

At its core, PAFE-Emplois seeks to enhance the performance and growth of very small, small, and medium-sized enterprises (VSMEs), which play a central role in Morocco’s economic fabric and employment generation. By combining financial instruments with clearly defined job creation targets, the program aims to transform entrepreneurial activity into measurable and sustainable employment impact.

Strengthening entrepreneurship ecosystems

The program focuses on several key pillars. These include improving public support systems for entrepreneurs, expanding inclusive financing options, strengthening incentive mechanisms for VSMEs, and promoting innovative operational approaches that directly support employment creation.

In practical terms, PAFE-Emplois will link guarantee facilities and investment grants to job-related performance indicators. This results-based financing approach is intended to enhance the effectiveness of public and private interventions while ensuring that funding translates into real economic and social outcomes.

According to the AfDB’s country office in Morocco, this structure will help convert entrepreneurial potential into tangible results by fostering business growth, improving project quality, and strengthening the sustainability of local economic development. The program also places strong emphasis on youth and emerging entrepreneurs, recognizing their role in shaping future economic dynamics.

Alignment with national strategies

PAFE-Emplois is fully aligned with Morocco’s national employment roadmap and the National Financial Inclusion Strategy. Both frameworks aim to address structural challenges in the labor market, expand access to finance, and promote the creation of formal, stable, and inclusive jobs across the country.

By embedding the program within these national strategies, Moroccan authorities and the AfDB aim to ensure coherence between policy objectives and operational tools, while improving coordination among public institutions, financial partners, and private sector actors.

The program’s governance framework and implementation mechanisms were presented during the launch workshop, alongside environmental and social standards that will guide project selection and execution. Participants also worked on defining operational priorities for the initial phase and developing a shared roadmap among stakeholders.

Support for women entrepreneurs

A key component of the program is its focus on women-led businesses. PAFE-Emplois benefits from a grant provided through the Affirmative Finance Action for Women in Africa (AFAWA) initiative, via the Women Entrepreneurs Finance Initiative (We-Fi). This support will enable women entrepreneurs to access targeted grants designed to help them finalize project preparation and mobilize financing.

The objective is to reduce persistent financing gaps affecting women-owned enterprises and to strengthen their participation in the formal economy. By improving access to capital and technical support, the program aims to enhance the sustainability and growth prospects of women-led businesses, while contributing to broader employment goals.

Institutional and financial partnerships

The program is supported by a range of Moroccan and international partners. On the national level, institutional backing is provided by the Ministry of Investment, Convergence and Public Policy Evaluation, as well as Tamwilcom, Morocco’s public credit guarantee institution. These entities play a key role in facilitating access to finance and aligning policy instruments with development objectives.

At the international level, technical and financial support is also provided by partners such as the German Development Bank (KfW) and the Islamic Development Bank (IsDB). Their involvement reflects growing multilateral cooperation in supporting private sector development and job creation in Morocco.

This multi-partner structure is intended to strengthen the program’s financial base, technical capacity, and long-term sustainability, while ensuring that interventions are coordinated and aligned with national priorities.

Long-standing cooperation between Morocco and the AfDB

The launch of PAFE-Emplois builds on a long-standing partnership between Morocco and the African Development Bank Group. Since 1978, the AfDB has mobilized close to $16 billion to finance more than 150 projects and programs across the Kingdom.

These interventions have covered a wide range of strategic sectors, including transport infrastructure, social protection, water and sanitation, energy, agriculture, governance, and the financial sector. Over time, this cooperation has contributed to strengthening Morocco’s infrastructure base, improving social services, and supporting institutional reforms.

The new program reflects an evolution in this partnership, with greater emphasis on results-based financing, private sector development, and employment outcomes. It also aligns with broader AfDB priorities related to inclusive growth, youth employment, and gender equality.

A focus on results and impact

One of the defining features of PAFE-Emplois is its explicit focus on results. Rather than concentrating solely on financial disbursement or project volume, the program prioritizes measurable employment outcomes, business performance, and social impact.

This approach reflects a growing shift among development institutions toward outcome-based financing models, which aim to improve accountability, enhance project effectiveness, and ensure that public and donor resources deliver tangible benefits to citizens.

By linking financial incentives to employment creation, the program encourages both public institutions and private sector actors to align their strategies with national labor market objectives. Over time, this is expected to contribute to a stronger entrepreneurial ecosystem, improved access to finance, and more resilient job creation dynamics.

Outlook

The launch of PAFE-Emplois marks a significant step in Morocco’s efforts to strengthen entrepreneurship as a driver of economic growth and employment. Through its integrated design, multi-partner structure, and focus on results, the program aims to address structural challenges facing small businesses and job seekers, while promoting inclusive and sustainable development.

As implementation moves forward, the program’s success will depend on effective coordination among stakeholders, timely deployment of financial instruments, and continuous monitoring of results. If successfully executed, PAFE-Emplois could serve as a model for results-based employment financing in the region, while reinforcing Morocco’s position as a hub for entrepreneurship and private sector development in Africa.