Join on WhatsApp
Join on Telegram
Rabat – The Board of Directors of the African Development Bank (AfDB) has approved a €120 million financing package for Morocco, aimed at enhancing governance and climate resilience under the first phase of the Support Program for Governance and Climate Resilience.
According to a statement from the AfDB, the program primarily targets implementing reforms to stimulate Morocco’s economy and improve its resilience against external factors, including climate-related challenges.
The bank’s support will focus on significant reforms in economic and sectoral governance, particularly concerning public enterprises. The initiative seeks to realign the public sector with its strategic and organizational functions while continuing to play a role in boosting private investment and economic competitiveness.
The program also aims to promote sustainable development by reducing macroeconomic volatility associated with external factors, including climatic conditions. It will assist government efforts to enhance governance, improve water sector performance, and create a conducive environment for renewable energy development.
The AfDB noted that Morocco has undertaken substantial structural reforms over the 2010-2020 decade, during which the country significantly invested in infrastructure. Public investment increased from MAD 167 billion to MAD 335 billion between 2011 and 2023.
However, economic growth remains linked to rainfall and fluctuations in energy prices, which impact growth trajectories and contribute to macroeconomic volatility, it concluded.
Climate change is presenting significant challenges in Morocco, notably through increased temperatures, reduced water availability, and more frequent extreme weather events. These changes have impacted agriculture, water resources, and overall economic stability.
To address these issues, the Moroccan government has implemented policies to adapt to climate change impacts and mitigate greenhouse gas emissions. This includes the Nationally Determined Contributions (NDCs) under the Paris Agreement, which outline Morocco’s commitments to reduce emissions and improve climate resilience.
In addition, the country has been investing in renewable energy sources to reduce dependence on fossil fuels.
Given the increased frequency of droughts, Morocco is enhancing its water resource management. Efforts include the construction of dams, the promotion of water-saving technologies, and improvements in irrigation practices.
