Morocco: AfDB approves $487 million package to enhance reforms and economic and climate resilience

The Board of Directors of the African Development Bank Group has approved, USD 487 million in funding for Morocco to advance economic reforms, strengthen climate resilience and support more inclusive growth. The approval was made on October 21.

As part of its third phase, the Programme to Support the Strengthening of Economic Governance and Resilience to Climate Change (PGRCC-Phase III) aims to strengthen the role of the private sector as a driver of investment and value creation, whilst refocusing the state on its strategic functions.

"Our ambition is to help cushion exogenous shocks, whether economic, energy-related or climate-related. It is also to consolidate the structural reforms necessary to sustainably strengthen the resilience of the Moroccan economy and to promote private investment," said Abdoulaye Coulibaly, Director for Governance and Economic Reforms at the African Development Bank Group.

This operation forms part of the Bank Group's strategic vision, underpinned by its Four Cardinal Points, and aligns with the Kingdom's strategic priorities of accelerating the transformation of the economy and sustainably strengthening its resilience.

"Morocco has chosen to take action by continuing its reforms despite external shocks," emphasised Achraf Tarsim, the Bank Group's Country Manager in Morocco. "Our aim is to support this vital momentum to accelerate the transformation of the economy, sustain growth and create more jobs."

The first part of the funding will focus on optimising the channels for public action. In particular, it will support the restructuring of the portfolio of public enterprises, the modernisation of the public-private partnership framework and the improvement of the business climate. The aim is to create the conditions for increased mobilisation of private investment, in particular by supporting small and medium-sized enterprises, innovation and integration into global value chains.

A second component will strengthen the Kingdom's climate and energy resilience through the modernisation of water and electricity sector governance and better integration of climate issues into public policy. It will thus help to accelerate the low-carbon transition.

This third phase of the programme will help to consolidate reforms undertaken during the previous phases, while supporting Morocco cope with the effects of the crisis in the Middle East, reflected in particular in rising energy and transport costs.

The operation forms part of the African Development Bank Group's Global Energy and Fertiliser Crisis Response Framework (GEFCRF), and combines a counter-cyclical response with resilience-building. This is expected to help preserve fiscal space and priority spending, whilst maintaining the momentum of reforms and investment.

Since 1978, the African Development Bank Group has mobilised nearly €15 billion for more than 150 projects in Morocco, in key sectors such as transport, energy, water and sanitation, agriculture and social protection.