House of Representatives Adopts in 2nd Reading Bill on Crowdfunding

The House of Representatives adopted, in second reading and unanimously, on Wednesday, the bill n° 15-18 on collaborative financing “Crowdfunding”, in the presence of Minister of Economy, Finance and Administration Reform Mohamed Benchaâboun.

The establishment of a legal framework, through Law No.15-18 governing collaborative financing activities, is part of the efforts of the public authorities to strengthen the financial inclusion of young project holders, the support for economic and social development and the channeling of collective savings towards new opportunities, said a press release from the Treasury and External Finance Department (DTFE), under the Ministry of the Economy, Finance and Administration Reform.

This legal framework should help mobilize new sources of financing for the benefit of very small, small and medium-sized enterprises and young people with innovative projects. It should also allow the active participation of potential funders in the country’s development projects via a simple, secure and transparent financing mechanism.

This new legal framework establishes a complete regulatory system for collaborative financing activities, noted the same source, adding that it includes in particular the creation of the status of manager of collaborative financing platforms and the setting of the authorization system for Collaborative Financing Companies, the procedures and methods of creating and operating the said platforms and the commitments and obligations of the Collaborative Financing Companies in terms of public information, advertising and reporting.

Collaborative financing, known internationally as “Crowdfunding”, is a method of financing projects by the public. It makes it possible to collect funds, generally of small amount, from a large public, mainly in order to finance youth entrepreneurship and innovation.

This new method of financing operates through internet platforms allowing direct and transparent contact between project holders and contributors. These activities take three forms of financing namely: loan, capital investment and donation.