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

The Board of Directors of the African Development Bank (AfDB) has approved USD 487 million in funding for Morocco to advance economic reforms, strengthen climate resilience, and support more inclusive growth, according to a press release. The approval was made on October 21. The financing supports the third phase of the Programme to Support the Strengthening of Economic Governance and Resilience to Climate Change (PGRCC-Phase III). It aims to reinforce the private sector as a driver of investment and value creation while refocusing the state on its strategic functions. In Morocco, structural reforms aim to strengthen economic resilience, stimulate private investment, and accelerate the transition to a low-carbon economy.

The operation forms part of the Bank Group’s strategic vision, underpinned by its Four Cardinal Points, and aligns with the Kingdom’s strategic priorities. These priorities include accelerating the transformation of the economy and sustainably strengthening its resilience. This third phase will consolidate reforms undertaken during previous phases. It will also support Morocco in coping with the effects of the crisis in the Middle East, reflected in rising energy and transport costs. Since 1978, the African Development Bank Group has mobilized nearly €15 billion for more than 150 projects in Morocco.

The first part of the funding will focus on optimizing the channels for public action. It will support the restructuring of the portfolio of public enterprises and the modernization of the public-private partnership framework. The program will also work to improve the business climate. The goal is to create conditions for increased mobilization of private investment. This includes 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 modernization of water and electricity sector governance. It will also promote better integration of climate issues into public policy, helping to accelerate the low-carbon transition. Abdoulaye Coulibaly, Director for Governance and Economic Reforms at the African Development Bank Group, outlined the program’s goals.

“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,” he said.

The operation forms part of the African Development Bank Group’s Global Energy and Fertiliser Crisis Response Framework (GEFCRF). It combines a counter-cyclical response with resilience-building, which is expected to help preserve fiscal space and priority spending. Achraf Tarsim, the Bank Group’s Country Manager in Morocco, emphasized the Kingdom’s commitment to reform. “Morocco has chosen to take action by continuing its reforms despite external shocks,” he said, adding that the aim is to accelerate the transformation of the economy, sustain growth, and create more jobs. Past support has covered key sectors including transport, energy, water and sanitation, agriculture, and social protection.