$350 Million WB financing for reform of Morocco’s public institutions & enterprises

The World bank will contribute to the reform of Morocco’s public institutions & enterprises with a $350 million financing.

The financing agreement was signed Thursday in Rabat by Minister of Economy and Finance, Nadia Fettah, and Director of the Maghreb and Malta Department of the World Bank, Jesko Hentschel.

During the signing ceremony, Nadia Fettah emphasized that this agreement will strengthen exemplary cooperation relations with the World Bank to support the implementation of the reform process of public institutions and enterprises (EEP), initiated by the Kingdom following the royal guidelines related to the reform of the EEP sector.

This process is marked by the creation of the National Agency for Strategic Management of State Holdings and Monitoring the Performance of Public Institutions and Enterprises (ANGSPE), the Ministry of Economy and Finance said in a statement.

The agreement also follows the approval by the Council of Ministers held on June 1, 2024, under the presidency of King Mohammed VI, of the strategic guidelines for the state’s shareholder policy. This strategy is a pillar of the EEP sector reform, which seeks to reorganize the public portfolio, enhance governance and performance, and encouraging private sector involvement in investment initiatives.

The WB-funded program, reflecting Morocco’s ambitious commitments to EEP reform, aims to support the “strengthening of the state’s shareholder functions and the governance framework of EEPs,” “reconfiguring the public portfolio and enhancing competitive neutrality,” and “improving the monitoring of EEP performance, including in terms of climate impacts,” the statement said.

The implementation of this program is planned to take five years and will be managed by the ANGSPE and the Directorate of Public Enterprises and Privatization (DEPP) in coordination with all relevant stakeholders.