World Bank Grants $4M to Boost Climate-Smart Agri-Food Systems in Morocco

The new funding addresses demand-side barriers that prevent small- and medium-scale farmers from adopting climate-resilient technologies—particularly in Morocco’s vulnerable rainfed cereal sector.

The World Bank’s Board of Directors has approved a $4 million grant from the Livable Planet Fund (LPF) to provide additional financing for Morocco’s Transforming Agri-food Systems Program. The new support reinforces efforts to build a more climate-resilient, competitive, and secure agri-food system, while improving food safety, quality, and farmer incomes.

The grant complements the $250 million approved in December 2024, expanding the program’s focus on climate-smart agriculture and strengthening Morocco’s ability to withstand increasing climate shocks, especially prolonged droughts.

Accelerating Climate-Smart Farming for Small and Medium Farmers

The new funding addresses demand-side barriers that prevent small- and medium-scale farmers from adopting climate-resilient technologies—particularly in Morocco’s vulnerable rainfed cereal sector.

The additional financing will:

• support 1,200 farmers across 20,000 hectares

• provide digital e-vouchers to cover costs of:

  • direct-seeding mechanization services

  • access to climate-resilient seeds

• promote conservation agriculture practices that reduce soil degradation, enhance carbon sequestration, and stabilize yields

The programme also helps cereal and legume farmers—including women and youth—improve market access through smart aggregation, enabling them to pool harvests and access more lucrative markets.

Strengthening Financial Access and Inclusion

By combining e-vouchers with improved aggregation models, the project will:

• reduce production costs

• enhance access to finance for smallholders

• improve bargaining power and price competitiveness

• create more equitable market opportunities across rural regions

These measures support broader goals of financial inclusion, resilience building, and rural employment.

Tracking Impact Through Strong Monitoring and Evaluation

The grant also includes increased support for:

• project management and implementation

• monitoring and evaluation systems

• tracking adoption of conservation agriculture

• measuring gains in yields, incomes, and climate mitigation impacts

  • including quantifying reductions in greenhouse gas emissions

In addition, World Bank–executed technical assistance will support the design and rollout of the e-voucher program and conduct a rigorous impact evaluation.

Responding to Climate Pressures on Morocco’s Agri-Food Sector

Agriculture remains central to Morocco’s economy and rural livelihoods. However, consecutive years of severe drought have highlighted the vulnerabilities of rainfed cereal systems and the urgent need for more resilient agricultural practices.

The new financing expands conservation agriculture, helping Morocco:

• stabilize crop yields

• improve soil and water management

• reduce pressure on diminishing water resources

• mitigate greenhouse gas emissions

• strengthen food and nutritional security

Delivering Impact Under the One World Bank Group Approach

The project is a collaboration between the International Bank for Reconstruction and Development (IBRD) and the International Finance Corporation (IFC), supporting the Bank’s One World Bank Group approach. It also contributes to the AgriConnect initiative, which aims to increase employment along cereal and legume value chains and reinforce national food security.

Supporting Morocco’s Green Transition and Rural Jobs

Ahmadou Moustapha Ndiaye, World Bank Division Director for the Maghreb and Malta, highlighted the importance of the additional financing:

“By reinforcing the shift to climate-smart practices and piloting innovative, digitally enabled support for smallholders, this additional financing will support Morocco create green jobs in rural areas and strengthen national food security.”

The support builds on last year’s momentum and deepens collaboration across public and private stakeholders.

Ensuring Safer, Higher-Quality Food for Consumers

Ultimately, the programme aims to help farmers produce safer, higher-quality food, expand their market reach, and increase household incomes—all while building resilient, sustainable agri-food systems that protect Morocco’s environment and rural communities.