On Wednesday, February 10, Morocco’s Lower House of parliament the House of Representatives just passed a bill establishing a legal framework regulating collaborative financing and crowdfunding. Law No.15-18 bill governs collaborative financing activities across Morocco. The Treasury and External Finance Department described the legislation as ongoing efforts to support socio-economic developments countrywide.
A legal framework creates new forms of financing for small and medium-sized enterprises. The same applies to young people with innovative projects. This framework provides a secure and transparent mechanism for financing, allowing the project funders to take part in government development projects.
The draft crowdfunding bill was presented by Morocco’s Ministry of Economy and Finance on March 21, 2018. That draft law defined the terms and conditions under which companies are allowed to operate and the different modes of financing authorized.
According to the definition, Crowdfunding is a fundraising operation via an electronic platform (plateforme de financement collaboratif) managed by a collaborative funding company (société de financement collaboratif).
Article 15 requires the collaborative funding company to maintain a minimum share capital of MAD300,000 tobe fully-paid up during incorporation.
Types of crowdfunding
- “Investment” category – Done through direct/indirect equity investment in a capital company.
- “Loan” category – Remunerated or free of charge whose conditions and modalities fall under the conditions set by the Bank Al-Maghrib.
- “Donation” category – Carried out as a cash donation without any form of compensation.
DTE released a press release on how the new legal framework establishes a regulatory mechanism for collaborative financing. Bills 15 and 18 create collaborative financing platforms while defining the authoritarian system.
Crowdfunding or collaborative financing involves funding a project in small amounts from a large number of people over the internet. The financing is in the form of capital investment, loans, and donations.
A 2019 study on Crowdfunding in Morocco revealed a good number of Moroccans are prevented from setting up their own startups due to lack of funding. As many as 25% of respondents indicated this as one of their main challenges. The new bill will ease innovation while strengthening the Moroccan economy.
Here is the law on collaborative financing
Original article on Africa Legal News