In a major milestone highlighting the Kingdom’s robust economic trajectory, the Moroccan government and the African Development Bank (AfDB) Group have officially signed a massive financing agreement worth €434.4 million (nearly 4.8 billion dirhams) in Rabat. This vital financial injection is engineered to accelerate the structural transformation of Morocco's economy, paving the way for stronger, more inclusive growth designed to withstand external economic and climate-related shocks.
The high-level signing ceremony took place in the administrative capital of Rabat, led by Fouzi Lekjaa, Morocco’s Minister of Economy, Finance and Public Performance and Governor of the Bank for Morocco, alongside Achraf Hassan Tarsim, the African Development Bank’s Country Manager for Morocco. The funds will directly fuel the third phase of the Economic Governance and Climate Change Resilience Support Programme (PGRCC-Phase III), a strategic initiative aimed at elevating the private sector into a primary driver of national investment and value creation while strategically refocusing the state on its core functions.
Driving Private Sector Growth and Modernising Public Enterprise
The newly secured multi-billion-dirham package focuses heavily on two foundational pillars. The first component is dedicated to strengthening public sector capacities and modernizing the regulatory ecosystem. By supporting the restructuring of public enterprise portfolios, updating public-private partnership (PPP) frameworks, and fundamentally enhancing the domestic business environment, Moroccan authorities aim to cultivate an irresistible destination for local and international private investments. Furthermore, these reforms will actively integrate small and medium-sized enterprises (SMEs) into robust global value chains, ensuring that economic growth benefits communities across Casablanca, Marrakech, Tangier, and beyond.
Speaking at the signing ceremony, Minister Fouzi Lekjaa emphasized the significance of the partnership. "This exemplary partnership is underpinned by the African Development Bank’s renewed confidence in the reform momentum driven under the leadership of His Majesty King Mohammed VI," Lekjaa stated. "This confidence is reflected in record figures, establishing our cooperation as a model partnership."
Accelerating the Green Transition and Climate Resilience
The second pillar of the PGRCC-Phase III addresses Morocco's proactive stance on environmental sustainability and energy security. As climate change presents complex challenges across North Africa, the funding will supercharge the Kingdom's transition to a low-carbon economy. This includes modernizing governance within critical water and electricity sectors and embedding rigorous climate considerations into overarching public policies.
In addition to long-term green objectives, the programme provides critical counter-cyclical support to help Morocco absorb external pressures, such as fluctuating energy and transport costs linked to ongoing geopolitical tensions in the Middle East. Achraf Hassan Tarsim, AfDB Country Manager for Morocco, noted: "Faced with external shocks, Morocco has chosen to act and stay the course on reforms. Our role is to support this momentum to accelerate economic transformation, strengthen growth and foster job creation."
By blending short-term resilience building with long-term fiscal preservation, Morocco continues to solidify its status as a continental leader in economic reform, sustainable governance, and strategic development.
As reported by afdb.org.
