Morocco, Germany’s KfW ink financing deals

Morocco and the German Development Bank (KfW) on Wednesday formalized three loan agreements totaling 250 million euros and two grant agreements amounting to 7 million euros.

The agreements are earmarked for financing three pivotal projects focused on social protection, sustainable mobility, and irrigation.

These agreements were signed in Rabat by Fouzi Lekjaa, Minister in charge of the Budget, and Janne Rajpar, Director of the KfW (Kreditanstalt für Wiederaufbau) office in Morocco.

The first project revolves around the Social Protection initiative. It secures a concessional loan of 120 million euros accompanied by a grant of 2 million euros.

This financial support aims to enhance living conditions by contributing to the Royal Social Protection project.

The second project finances the Urban and Interurban Road Transport Reform Support Fund (FART) through a 100 million euros loan and an additional grant of 5 million euros.

This financial injection is directed towards promoting and financing the development of a modern, climate-respecting public transportation system in Moroccan cities and municipalities.

The third funding package, amounting to 30 million euros in the form of a loan, is destined to the project targeting the improvement of water consumption efficiency in irrigated farming in the Sidi Mohamed Cherif perimeter.

This project aims to enhance efficient use of regulated irrigation waters downstream from the Ouljet Essoltane dam in northern Morocco.

During the signing ceremony, both Lekjaa and Rajpar expressed satisfaction with the strong partnership ties between the two nations. They also affirmed their shared commitment to exploring avenues to further enhance and strengthen KfW’s financial contributions.