The African Development Bank will provide Morocco €434.4 million to accelerate economic structural transformation and strengthen the Kingdom’s inclusive growth and resilience to external and climate-related shocks.
The financing agreement was inked Friday in Rabat by Fouzi Lekjaa, Minister of Economy and Governor of the Bank for Morocco Achraf Hassan Tarsim.
The Bank’s funding will support the third phase of the Economic Governance and Climate Change Resilience Support Program (PGRCC-Phase III), which aims to strengthen the role of the private sector as a driver of investment and value creation, while refocusing the State on its strategic functions.
Speaking at the signing, Mr. Lekjaa said: “This exemplary partnership is underpinned by the African Development Bank’s renewed confidence in the reform momentum driven under the leadership of His Majesty King Mohammed VI. This confidence is reflected in record figures, establishing our cooperation as a model partnership.”
Tarsim, the Country Manager said: “Faced with external shocks, Morocco has chosen to act and stay the course on reforms. Our role is to support this momentum to accelerate economic transformation, strengthen growth and foster job creation.”
The first component of the financing will focus on strengthening public sector capacity. It will support the restructuring of the public enterprise portfolio, the modernization of the public-private partnership framework and improvements to the business environment.
The aim is to create conditions that attract more private investment and support the integration of small and medium-sized enterprises into global value chains.
The second component will strengthen the Kingdom’s climate and energy resilience and accelerate its transition to a low-carbon economy. It will do this by modernizing governance in the water and electricity sectors and integrating climate considerations more fully into public policy.
