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Rabat – The African Development Bank Group (AfDB) and Morocco’s Municipal Equipment Fund (FEC) signed a second €150 million (MAD 1.6 billion) loan agreement in Rabat on Wednesday to support investment by local authorities across the country.
The signing ceremony also included a grant agreement and a letter of intent designed to strengthen the long-term strategic partnership between the two institutions, the AfDB said in a statement.
The new €150 million financing will allow the FEC to continue funding sustainable, inclusive and climate-resilient infrastructure projects carried out by Moroccan local authorities.
According to the bank, the funding will support a range of projects, including rural access roads, drinking water networks, urban renewal operations, and educational and socio-cultural facilities. The overall goal is to improve public services at the local level, particularly in rural areas, while expanding access to essential services for communities.
The financing also aims to strengthen resilience to climate change and encourage job creation and investment opportunities in different parts of the country.
Alongside the loan, the AfDB will provide technical assistance to the FEC to reinforce its operational capacity.
Read also: AFC Chief Economist: Morocco Can Help Drive Africa’s Next Growth Phase
Achraf Tarsim, the bank’s country office manager for Morocco, said the agreements reflect a shared ambition to deepen support for local authorities and their role in driving development.
“Our priority is to accelerate the delivery of sustainable, inclusive and resilient infrastructure for the benefit of the population,” Tarsim said.
FEC Governor and Director General Omar Lahlou said the signing reflects growing confidence between the two institutions.
“The FEC and the African Development Bank share common values centered on sustainable development, placed here at the service of territorial development,” Lahlou said.
According to the statement, the different agreements align with Morocco’s national development priorities, as well as the AfDB Group’s Four Highs strategy. Together, the operations are expected to contribute to the socio-economic development of territories across the country while improving the quality of life for local communities.
The new financing follows a previous €100 million (MAD 1.07 billion) loan the AfDB approved for the FEC in 2024. According to the project’s summary note, the latest operation marks the Bank’s second line of credit to the institution, continuing its support for local infrastructure investment in Morocco.
