AfDB: €434 million to support Morocco's economy

The African Development Bank is preparing to grant Morocco a new loan of about 434 million euros (368 million units of account), to finance the third phase of the program to support the strengthening of economic governance and resilience to climate change. This new funding comes as a continuation of a multi-phase partnership between Rabat and the Bank, aimed at modernizing the governance of public institutions, stimulating private investment and enhancing the resistance of the water and energy sectors to climate shocks. Extended program since 2024 This is the third funding of its kind within The same program, which was launched in 2024 with the support of the African Development Bank to keep pace with Morocco's economic reforms and the new development model. The Ministry of Economy and Finance coordinates the implementation of this program with the Bank, while the OPEC Fund participates in financing the new phase. Phases of financing by the African Development Bank for the Economic Governance Program in Morocco Phase Date of approval Value of financing Phase I June 2024 120 million euros Phase II June 2025 181.8 million euros Phase III October 2026 (in progress) About 434 million euros A growing partnership amounted to 1.3 billion euros in 2025. This financing is part of a broader partnership between Morocco and the African Development Bank, under which the Bank's commitments reached about 1.3 billion euros in 2025 alone, a level described by Ashraf Tarsim, the Bank's representative in Morocco, as "unprecedented," stressing that these funds "reflect the depth of the strategic partnership between the Kingdom and the Bank." The 2025 commitments also included financing the modernization of Marrakech, Agadir, Tangier and Fez airports, along with supporting Small and Medium Enterprises and Incorporated Farming. Modernizing the governance of public contracting and energy The new financing focuses on two main axes: the first is related to clarifying the role of the state as a shareholder in public institutions and contracting and improving their governance, and the second is aimed at stimulating private investment through public-private partnerships and promoting competition. In addition, there is a section on resilience to climate change, through the modernization of the management of the water and energy sectors, in a path that complements Morocco's efforts in energy development Renewable energy and reducing energy dependence. Why does this funding matter? The new loan is part of the “Global Framework to Respond to the Energy and Fertilizer Crises” adopted by the African Development Bank Group on September 1, 2026, with a cover of about $5.1 billion, to enhance the resilience of African countries to the upcoming shocks. The Bank explains, in an official document, that the supported reforms will benefit the “entire Moroccan population,” by freeing up additional financial margin that can be directed towards the education and health sectors. The agreement remains at the stage of Final preparation before presenting it to the Board of Directors of the Bank for final approval.