Morocco/Earthquake: EBRD earmarks €250 Mln for reconstruction

Morocco/Earthquake: EBRD earmarks €250 Mln for reconstruction

The European Bank for Reconstruction and Development (EBRD) announced Wednesday a €250 million funding for Morocco to help the country to rebuild its economy in the regions of the Atlas Mountains that were hit by the recent earthquake.

The Bank says the financial assistance is an initial response package spanning over three years (2023-2025). The response comprises two key phases that are designed to promote sustainable recovery and inclusive regional development.

The initial support phase will focus on earthquake relief, preservation of livelihoods and initial reconstruction. This includes enabling lending to affected individuals and micro, small and medium-sized enterprises (MSMEs) through partner financial and microfinance institutions.

There will be a strong focus on the economic inclusion of women, extending liquidity support for infrastructure and municipalities where needed and providing advisory and reconstruction grants for MSMEs.

The subsequent phase will see EBRD support for the government’s longer-term development and inclusive plan for the regions, such as infrastructure projects and broader economic opportunities for the population in the affected regions.

The EBRD will focus on helping provide MSMEs with greater access to finance, supporting the revitalization and resilience of the tourism sector and agricultural value chains, improving key municipal and regional infrastructure, and promoting economic diversification and human capital development through targeted investments and advisory services to the private sector.

The bank is planning additional funding at a later stage targeting the upgrade of infrastructure.

Morocco is a founding member of the EBRD and became a beneficiary of Bank resources in 2012. To date the EBRD has invested €4.2 billion in the country through 95 projects.

Morocco had announced a five-year plan worth 12 billion dollars in response to the earthquake to be funded by the state budget, local authorities, a special fund created to support quake-hit areas, Hassan II fund and international development aid.

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