Closed Compact Report: Morocco Compact | October 2015
Enterprise Support Project
- $33,850,000Original Compact Project Amount
- $15,126,518Total Disbursed
|Time||Estimated Economic Rate of Return (ERR) over 20 years||Estimated beneficiaries over 20 years||Estimated net benefits over 20 years|
|At compact closure||-0.9 percent||13,520||$-7,090,000|
Estimated benefits corresponds to $15.1 million of project funds, where cost-benefit analysis was conducted.
The Government of Morocco proposed the Enterprise Support Project to address two of its critical economic priorities: reduce high unemployment among young graduates and encourage a more entrepreneurial culture. High levels of unemployment in Morocco result from low levels of formal sector employment growth and an expanding labor supply. The overall unemployment rate in Morocco is around 10 percent, but youth unemployment has risen to approximately double that in recent years.
The objective of the Enterprise Support Project was to improve the outcomes of two existing high-priority Government of Morocco initiatives:
- Moukawalati, which translates as “My Small Business,” a national program intended to address high youth unemployment rates and drive Morocco’s businesses to be more entrepreneurial and competitive in the face of globalization; and
- The National Initiative for Human Development, a multi-year initiative aimed at creating opportunities for the poor, vulnerable and socially excluded.
The project was designed to be carried out in two phases, with continuation of the second phase subject to positive results from an impact evaluation of the first phase. The pilot phase was completed in March 2012; although it met its implementation targets and showed promising trends, the impact evaluation did not show statistically significant impacts. The revised economic rate of return did not justify scaling up the project for a second phase. MCC did not continue with a second phase and the project was closed in May 2012.
MCC completed impact evaluations of the Support to Income-Generating Activities Activity and the Support to Small Businesses Activity. The Summaries of Findings can be found here. Key findings for the Support to Income-Generating Activities (IGA) Activity include:
- The impact evaluation found that average declared profits were 78% greater for treatment group IGAs than for control IGAs.
- Although there were no measurable impacts on overall household income, IGA-supported households were less often in debt, had higher consumption and higher perceived levels of life satisfaction.
Key findings for the Support to Small Business Activity include:
- According to the evaluation, program implementation was effective, with participating businesses receiving a unique offering of training sessions.
- Overall, 74.5% of selected businesses dedicated time to training, compared to only 11.5% of firms in the Control group.
- As a result of the program, business closure rates decreased by 30%.
- However, two years after program completion, beneficiaries and their households were not impacted in terms of economic performance indicators, such as total sales, profits, or investment expenses.
Key performance indicators and outputs at compact end date
|Activity/Outcome||Key Performance Indicator||Baseline||End of Compact Target||Quarter 1 through Quarter 20 Actuals (as of Dec 2013)||Percent Compact Target Satisfied (as of Dec 2013)|
|Pilot Phase: Enterprise Support ANPME/OFPPT/INDH Training Activity||Beneficiaries trained||0||593||661||111%|
|Days of individual coaching||0||9,112||8,404||92%|
|Reduction in SME mortality (treatment firms with respect to control firms) one year after support completion (%)||0||20||30||150%|