Morocco, Jordan and Tunisia gets European bank investments
Morocco, Jordan and Tunisia will soon benefit from investments coming from Europe’s Bank for Reconstruction and Development (EBRD) as their economies continue to struggle. The bank is looking forward to an investment that could swell up to 200 million Euros. The investment in these three countries will be followed by several similar projects in the region adding up to the value of 2,5 billion Euros a year by 2015.
‘’Société Générale Marocaine de Banques’’ (SGMB) will be receiving 20 million Euros plus a 5 million euro trade finance facility from the European bank. Another 20 million Euros will be pumped into the Maghreb Private Equity Fund III, sponsored by a Tunisian-Moroccan private equity firm. These investments are geared towards easing the financial access to the small business in these countries through loans or private equity investments.
The bank is hoping that these investments will help the countries recover from the after effects of the Arab Spring. The main reason behind the expansion of its mandate to North African countries and Jordan according to the bank is to help in the financial sector, provide financing to small businesses, participate in energy efficiency projects and municipal services such as water treatment and infrastructure. Before, it focuses only on ex-Soviet bloc countries of Eastern Europe. Its investments in Eastern Europe have helped drive growth and structural change across a range of sectors in central European and ex-Soviet economies. It now has offices in Morocco, Tunisia, Egypt and Jordan.
Morocco’s economy for instance is undergoing crisis as its trade deficit continues to rise; raising fears that it might call again on the IMF as foreign currency reserves continue to decrease.the Kingdom is expected to raise 1 BN US$ in debt this fall to help loosen the grip on its deficit.