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Join on Telegram Rabat – The World Bank has approved a $500 million (MAD 5 billion) loan to Morocco to assist with the protection against health risks, human capital losses during childhood, poverty in old age, and climate change risks.
The loan is the first in a series of three operations to support a government reform program, which will also be financed with the help of other partners, the World Bank said in a press release on Thursday.
The press release cites the economic effects of COVID-19, this year’s drought-affected agricultural output, and rising global prices, as key reasons that put pressure on Morocco’s economy and its working class.
The financing project seeks to strengthen the Moroccan health system by expanding health insurance for disadvantaged members of society, as well as increasing the availability of healthcare staff and services.
The press release also notes the Bank’s intentions to focus the investment on populations that are particularly vulnerable to climate change, by adapting health services to better suit them and financing protections against extreme climate events.
The financing will also expand social support programs focused on children by expanding family allowances and a new pension program for non-salaried workers. World Bank officials also say they want to use the financing to put in place an institutional framework to protect against the effects of climate change.
“Climate change poses many challenges to Morocco,” Javier Diaz Cassou, senior economist at the World Bank, said. “The country is already in a situation of structural water stress, and rainfall levels have been increasingly erratic in recent years.”
“It will continue to face climate-induced shocks like droughts, floods, and heat waves, which pose a particular risk to women, youth and rural populations,” he added. “This new financing will contribute to increase Morocco’s climate resilience.”
Morocco secured another $350 million loan in late May to tap into its coastal resources and similarly help with mitigating climate change effects.
World Bank officials said Moroccan coasts hold potential for aquaculture, seaweed farming, and renewable marine energy.
Read also: World Bank Committed to Supporting Morocco’s Development Reforms
