EBRD loans Morocco €7.5 million to improve its automotive sector.
Rabat – The European Bank for Reconstruction and Development (EBRD) has granted Morocco a loan of €7.5 million to support its automotive sector.
The loan is provided for Tuyauto Gestamp Morocco, an automotive equipment manufacturer jointly owned by Morocco’s Tuyauto and Spain’s Gestamp Automocion.
The funds will finance the first phase of Tuyauto Gestamp Morocco’s operations of welding and assembling metal frames to supply the new Peugeot – Citroen plant in Morocco’s freezone in Kenitra.
In addition to its initial aim of boosting the productivity of Morocco’s automotive sector, EBRD’s has a human capital aspect.
In a press release, the European financial body said that the grant will allow approximately 100 young Moroccans to improve their skills through certified vocational trainings.
Certifications obtained as a result of the trainings are internationally recognized and will improve the recipients’ job prospects in the automobile industry, according to the press release.
EBRD emphasized that it is the fourth project it supported this year in the Moroccan automotive sector after Faurecia, Varroc Lightning Systems, and Novares Morocco.
The bank further said that the project supports Morocco’s government efforts to increase local integration in the automotive sector to 60 percent by 2020.
Since 2012, Morocco benefited from over €1.7 billion of the bank’s investments. The bank’s moves has so far helped create 50 projects. The bank also provided assistance to more than 470 Moroccan companies.