African Development Bank approves $487 million to support reforms in Morocco

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Rabat — The Board of Directors of the African Development Bank Group (AfDB) has approved $487 million in funding to support economic reforms, strengthen climate resilience and promote more inclusive growth in Morocco.

The approval, announced on 21 October, marks the third phase of the Programme to Support the Strengthening of Economic Governance and Resilience to Climate Change (PGRCC). The initiative aims to expand the private sector’s role in investment and value creation, while refocusing the state on its strategic functions.

The package has two components. The first aims to improve the effectiveness of public action through measures to restructure the portfolio of state-owned enterprises, modernise the framework for public-private partnerships and improve the business climate. The programme also seeks to create better conditions for private investment, particularly in small and medium-sized enterprises, innovation and integration into global value chains.

The second component focuses on climate and energy resilience. Priorities include modernising governance in the water and electricity sectors and integrating climate considerations into public policies, with the aim of accelerating Morocco’s transition to a low-carbon economy.

According to the AfDB, the operation is designed to consolidate reforms launched in previous phases and help Morocco withstand external shocks, including higher energy and transport costs linked to the crisis in the Middle East. The funding combines short-term economic support with measures to strengthen the country’s capacity to cope with future disruptions.

Abdoulaye Coulibaly, the Bank’s Director for Governance and Economic Reforms, said the programme aims to cushion the economy against economic, energy and climate shocks while encouraging private investment. Achraf Tarsim, the Bank’s Country Manager in Morocco, highlighted the continuation of reforms as a means of sustaining growth and creating jobs.

The operation is part of the AfDB’s response framework for the energy and fertiliser crisis. Since 1978, the Group has mobilised nearly €15 billion for more than 150 projects in Morocco, covering transport, energy, water, agriculture and social protection.