Morocco’s government will discuss and approve a draft law, on Thursday 22nd, legalizing crowdfunding on online platforms. The draft law aims to give young entrepreneurs and innovative initiatives a chance to have access to financing.

Up to this moment, collective fundraising through online platforms hasn’t been an option for Moroccan entrepreneurs. Luckily for them, this will soon change as the government council will approve next Thursday a draft law that regulates this mechanism for financing projects in limited amounts directly from the public.

According to the Arabic-language news source Alyaoum24, the introductory memorandum of the draft law that was signed by Morocco’s Economy and Finance Minister, Mohamed Benchaaboun, states that this mechanism will enable a direct and transparent relationship between the entrepreneurs seeking financing and potential contributors.

The draft law aims to create new sources of financing for small and medium-sized companies and entrepreneurs and calls on Moroccans living abroad to play a primary role in this.

According to the same source, unleashing the creative and cultural potential of young people, and enhancing the attractiveness of Casablanca’s financial pole are two byproducts of the draft law.

In order to facilitate the crowdfunding for Moroccan entrepreneurs, the law also includes the establishment of a system regulating the accreditation of the firms that will manage the crowdfunding platforms. These will have to inform the public of the fundraising processes through period reports and publicity.

The system also specifies that Bank Al-Maghrib and the Moroccan Capital Market Authority for investment operations will jointly supervise and monitor loan and donation transactions.

The long-awaited draft law contains three financing tools, loans, investments and donations and and sets the rules for each of these tools. Also, the articles of the draft law specify the funding limits for projects and from contributors