Morocco, AfDB sign €434m deal on climate and governance

Morocco and the African Development Bank (AfDB) signed, on Friday in Rabat, a €434 million financing agreement, as part of the third phase of the programme supporting economic governance and climate change resilience, according to MAP News.

The agreement was signed by Fouzi Lekjaa, Minister of Economy, Finance and Public Performance, and Achraf Tarsim, head of the AfDB's country office in Morocco, in the presence of Nizar Baraka, Minister of Equipment, Water and Forests. The financing covers four areas: reforming public institutions and enterprises, improving the business climate, strengthening governance of the water and electricity sectors, and accelerating the rollout of renewable energy.

What did officials say?

Lekjaa welcomed the AfDB's confidence in Morocco's reform drive, pointing to a context of geopolitical turbulence and climate effects marked by alternating droughts and floods, and calling for anticipation and coordination of public policy, especially on water and energy. Baraka said management approaches must adapt to extreme climate events, linking food sovereignty to energy sovereignty, and described integrated water management combining new resources — seawater desalination, wastewater reuse — with the conservation of existing resources, especially groundwater. Tarsim praised coordination among government departments, describing it as a genuine partnership, citing reforms already launched such as the state's shareholding policy, the transformation of public enterprises and their opening to private investment, water pricing and wastewater reuse, and said AfDB support goes beyond budget aid to include investment financing and technical assistance.

Who will carry out the programme?

Implementation involves several government departments and institutions: the Ministry of Economy, Finance and Public Performance, the Ministry of the Interior, the Ministry of Energy, Mines and Sustainable Development, the Ministry of Equipment, Water and Forests, as well as the National Agency for the Strategic Management of State Holdings, the National Office of Electricity and Drinking Water, and the National Electricity Regulatory Authority. This spread of bodies reflects the programme's mix of institutional reforms and sector-specific measures tied directly to water and electricity.

Why does this matter to Moroccans?

The financing comes as Morocco faces repeated drought years and rainfall that varies widely between regions, making water and electricity security a matter that touches households' daily lives, not just a technical file between the government and international financial institutions. Linking investment in desalination and wastewater reuse to governance reform in the public and energy sectors aims, according to officials, to reduce vulnerability to extreme climate events and ensure continuity of essential services. Lekjaa had recently refused to raise import duties on meat despite a 37-billion-dirham cost to the state budget, another sign of the sensitive financial and social file the minister currently manages.

MAP did not specify the programme's implementation period, disbursement schedule, or the detailed breakdown of the amount across the four announced areas.