Morocco: The AfDB Grants $487 Million to Support Economic Reforms and Climate Resilience
African Development Bank Approves $487 Million Funding for Morocco
The Board of Directors of the African Development Bank (AfDB) approved a funding package of $487 million for Morocco on Wednesday in Abidjan. This initiative is aimed at accelerating structural reforms, fostering inclusive growth, and enhancing the resilience of the national economy against economic and climate shocks.
This financial support is part of the third phase of the Support Program for Strengthening Economic Governance and Climate Change Resilience (PGRCC). Its primary objective is to empower the private sector in investment and value creation, while refocusing state action on its strategic missions.
The first component of the program is dedicated to improving the effectiveness of public action. It specifically includes the restructuring of the public enterprise portfolio, modernizing the public-private partnership framework, and enhancing the business climate. The goal is to promote private investment, support small and medium-sized enterprises (SMEs), and boost innovation, as well as to integrate Morocco into global value chains.
The second component addresses climate and energy resilience. This aspect is focused on modernizing governance in the water and electricity sectors, incorporating climate concerns more effectively into public policies, and accelerating the transition to a low-carbon economy.
The operation also aims to support the Kingdom in coping with the repercussions of the crisis in the Middle East, particularly the rising costs of energy and transport. It is expected to help preserve fiscal space and priority spending while maintaining the momentum of reforms and investment.
Since 1978, the AfDB has mobilized nearly €15 billion for over 150 projects in Morocco, covering various sectors including transport, energy, water and sanitation, agriculture, and social protection.
