Morocco, The Netherlands sign agreement to create €300 million investment fund

Morocco and the Netherlands signed an agreement to create an investment fund worth €300 million, equivalent to 3.2 billion dirhams, to finance investment projects in infrastructure.

The agreement for this fund was signed this Wednesday, in Rabat’s twin city, Salé, in the presence of Dutch Prime Minister Mark Rutte, who is on an official visit to Morocco, and head of the Government Aziz Akhannouch.

Alexander De Gaay Fortman, in charge of projects in Morocco, Guinea and Senegal in the “Invest International” fund, who initialed the agreement, told Hespress news outlet that 35 percent of the amount allocated to this fund is a grant, and the rest will be disbursed in the form of loans.

He further detailed that the fund will primarily finance projects related to water and renewable energies. The Netherlands is keenly interested in investing in green hydrogen, he said, expressing optimism about exploring potential investments once Morocco presents its new plan in this domain.

The Dutch official, who expressed willingness to work with the Mohammed VI Investment Fund in order to identify investment projects, said discussions have also been held with the National Ports Agency to determine the needs for port infrastructure, given the experience of the Netherlands in this field.

The allocation of this new fund for investment in the North African country is in line with the objectives of Morocco’s new development model and seeks to support efforts to solve the problem of water scarcity through the construction of water treatment plants and pumping stations, he said.

Under the agreement, €300 million will be invested over 3 years into various projects, with the possibility of injecting additional amounts based on projects evaluations, according to Fortman.

During their talks, Mark Rutte, who is accompanied by a delegation of governmental officials and businessmen, and Akhannouch have both emphasized the need to identify new areas of cooperation in fields of common interest, in order to establish a strategic framework for economic cooperation, promote investment and strengthen trade.

Akhannounch recalled in this vein the opportunities and incentives offered by the new investment charter and by the Mohammed VI Fund for Investment, as well as by the national green hydrogen strategy that is in the pipeline.

According to a statement by the Head of Government’s department, the two parties stressed the need to hold a business forum between economic operators in the two countries, in order to prospect existing investment opportunities in priority sectors, such as renewable energies, water resource management, agriculture, combating the effects of climate change and other areas of sustainable development.

The two sides also discussed tripartite cooperation with friendly African countries, with a view to enabling Dutch companies wishing to invest in Africa to benefit from Moroccan experience and expertise, given the Kingdom’s privileged status within its continent and the significant presence of the Moroccan public and private sectors in several African countries.

The two parties praised the quality of the age-old friendly relations between Morocco and the Netherlands, established for over four centuries, noting with satisfaction the current momentum in bilateral relations, which is likely to foster the establishment of a strategic partnership between the two Kingdoms.

The two parties also discussed the content of the joint Morocco-Netherlands statement, adopted in May 2022 in Marrakech, which constitutes a genuine roadmap for bilateral relations and enshrines the shared determination to pursue permanent political dialogue at all levels and to work through joint mechanisms to strengthen cooperation in the economic, social, and cultural fields.

During the talks that covered a number of regional and international issues of common interest, Akhannouch expressed Morocco’s thanks to the Netherlands for its positive and constructive attitude towards the issue of Morocco’s territorial integrity, and its support to the efforts of the UN Secretary-General’s Personal Envoy and to the autonomy plan presented by Morocco in 2007 as being a serious and credible contribution to the UN-led political process.

The Netherlands stands as the fifth-largest foreign investor in Morocco, with approximately 70 Dutch companies actively operating in the North African country in various sectors.