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Rabat – The European Bank for Reconstruction and Development (EBRD) unveiled on Thursday that its investment in Morocco more than doubled last year, reaching €530 million (MAD 5.8 billion), compared to €211 million (MAD 2.3 billion) in 2021.
The investment budget, which financed a total of 14 projects in Morocco, came amid a “challenging global economic environment in the wake of Russia’s war on Ukraine,” indicated EBRD in a statement.
The statement detailed that the bank allocated a “record” investment of €360 million (MAD 3.9 billion) for the private sector and €170 million (MAD 1.8 billion) to boost growth in Morocco’s green economy, emphasizing that 58% of its investments in Morocco had a “gender and inclusion focus.”
With a €44 million (MAD 485 million) loan, the bank co-financed the repowering of the Koudia Al Baida wind farm, a reflection of EBRD’s commitment to supporting Morocco’s transition to a low-carbon economy. The project marked the first of its kind in Africa.
In addition, the bank invested MAD 1 billion in the coastal city of Agadir, making it the first Moroccan city to join the EBRD Green Cities Programme.
In a bid to help Morocco’s oriental region unleash its “economic potential” and “improve regional access to infrastructure,” the financial institution provided additional assistance of €100 million (MAD 1.1 billion) for the construction of the Nador West Med (NWM) port.
Read also: Towards a Greener Future: Morocco’s BCP Receives 25€ Million in Funding
EBRD’s initiative extended to supporting small and medium-sized enterprises (SMEs) in Morocco, delivering 88 SMEs “advisory projects in 2022. Most of the businesses that benefited from the initiative were in the regions outside the cities of Rabat and Casablanca.
Moroccan businesses suffered greatly last year, due to the repercussions of the COVID-19 pandemic and the ongoing global economic crisis. A study by Moroccan information services firm Inforisk indicated that more than 12,397 businesses in Morocco failed in 2022, rising by 17.4% compared to 2021.
In addition to EBRD’s support of Moroccan SMEs, last year marked the Annual General Meeting, which the bank held for the first time in Morocco under the theme “Responding to Challenges in a Turbulent World.”
Besides Morocco, EBRD investments in other countries significantly increased in 2022, notably in the Southern and Eastern Mediterranean region (SEMED). The bank allocated a “record” €13.1 billion (MAD 144.4 billion) in investment to the region, “confirming its countercyclical role in supporting its clients and the economies in which it invests.”
The SEMED region comprises Morocco, Tunisia, Egypt, Jordan, and Lebanon, as well as the West Bank and Gaza. The bank seeks to help the SEMED region become “more competitive and resilient.”
