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Agadir – The World Bank has approved a $500 million financing package for Morocco under the First Morocco Jobs and Green Growth Development Policy Loan, aiming to support employment creation and the country’s green transition.
The program is the first in a series of three planned operations looking to advance Morocco’s jobs roadmap by expanding employment opportunities, strengthening labor market systems, and stimulating private sector development, particularly among small and medium-sized enterprises (SMEs).
According to the World Bank, the financing will support measures intended to improve access to jobs for Moroccan youth and women by expanding active labor market programs, with a target of reaching more than 330,000 job seekers by 2029.
It also includes efforts to better align education and training systems with private sector needs, alongside measures to increase “female labor force participation by boosting the availability of licensed childcare, adding over 40,000 new places and creating 1,200 direct jobs for women in the sector.”
Beyond labor market reforms, the initiative places strong emphasis on improving Morocco’s business environment.
It supports modernization of the insolvency framework to facilitate the resolution of financial distress, strengthening credit guarantee mechanisms for SMEs, and streamlining investment procedures through Regional Investment Centers.
The financing also supports Morocco’s national strategy towards a greener economy, particularly by removing barriers to private investment in renewable energy and expanding energy efficiency services.
“It also supports the growth of energy efficiency services and positions Morocco’s pharmaceutical industry to expand its presence in international markets, with export targets growing nearly sevenfold by 2029,” the World Bank Group shared in a press statement.
The World Bank described the operation as part of an integrated approach linking job creation, private sector growth, and the energy transition, addressing structural challenges such as youth unemployment, low female labor participation, and constraints on private investment.
“These reforms address one of the most persistent barriers to job creation in Morocco: the slow emergence of high-growth enterprises. By simultaneously improving the business environment, addressing sector-specific constraints, and supporting the emergence of high growth firms, this operation helps create the conditions for businesses to grow, navigate financial difficulties, and attract sustained investment,” said Ahmadou Moustapha Ndiaye, Division Director for the Maghreb and Malta at the World Bank.
