AfDB Approves $487 Million to Boost Morocco’s Reforms and Climate Resilience

The operation forms part of the African Development Bank Group’s Global Energy and Fertiliser Crisis Response Framework, which combines immediate support measures with long-term resilience-building initiatives.

Morocco has secured $487 million in financing from the African Development Bank Group (AfDB) to advance a new phase of economic reforms, strengthen climate resilience and support more inclusive and sustainable growth. The funding was approved by the Bank's Board of Directors on 21 October and comes at a time when the country continues to navigate global economic uncertainties, rising energy costs and climate-related challenges.

The financing will support the third phase of the Programme to Support the Strengthening of Economic Governance and Resilience to Climate Change (PGRCC-Phase III), a reform initiative designed to improve economic competitiveness, attract greater private-sector participation and strengthen the country's ability to respond to external shocks. The program reflects Morocco's broader efforts to modernize its economy, create jobs and build stronger foundations for long-term development.

The African Development Bank views the initiative as part of a wider strategy to help countries strengthen resilience against economic, energy and climate pressures while maintaining growth and investment momentum. Officials say the latest package will reinforce reforms already underway and help preserve key public spending priorities during a challenging international environment.

Focus on Private Sector Growth

The funding will support the restructuring of Morocco's portfolio of public enterprises, modernization of the public-private partnership framework and measures designed to improve the overall business environment. These reforms are intended to make it easier for businesses to invest, expand operations and contribute to economic development.

Particular attention will be given to supporting small and medium-sized enterprises, encouraging innovation and helping Moroccan companies strengthen their participation in global value chains. Policymakers see these areas as important drivers of employment, productivity and competitiveness.

Strengthening Climate and Energy Resilience

Resources will be directed to modern governance in the water and electricity sectors and to integrate climate considerations into public policy. These measures are expected to strengthen Morocco's capacity to manage environmental pressures and support the country's transition toward a lower-carbon economy.

Climate resilience has become an increasingly important priority as countries face growing risks linked to droughts, resource constraints and changing weather patterns. The reforms supported through the program are intended to help Morocco respond more effectively to those challenges while promoting sustainable economic growth.

Building on Previous Reform Efforts

The third phase of the initiative continues work launched under earlier stages of the program. The new financing is expected to consolidate previous achievements and help Morocco maintain progress despite economic pressures linked to the crisis in the Middle East, which has contributed to higher energy and transport costs.

According to Abdoulaye Coulibaly, Director for Governance and Economic Reforms at the African Development Bank Group, the objective is to help protect the economy from external shocks while strengthening the structural reforms needed to improve resilience and attract investment.

Achraf Tarsim, the Bank Group's Country Manager in Morocco, said the country has continued implementing reforms despite challenging external conditions, and the new financing will support efforts to accelerate economic transformation, sustain growth and create employment opportunities.

Part of a Broader Development Partnership

The operation forms part of the African Development Bank Group's Global Energy and Fertiliser Crisis Response Framework, which combines immediate support measures with long-term resilience-building initiatives. By helping preserve fiscal space and maintain investment activity, the program is expected to support Morocco's reform agenda without slowing progress on development priorities.

The latest approval also reinforces a long-standing partnership between Morocco and the African Development Bank Group. Since 1978, the institution has mobilized nearly €15 billion for more than 150 projects across the country, supporting sectors including transport, energy, water and sanitation, agriculture and social protection.