RABAT, Nov 13 – The African Development Bank (AfDB) has approved €434.4 million ($479 million) in financing for Morocco to support economic governance reforms and strengthen the country’s resilience to energy and climate-related shocks.
The agreement, signed in Rabat on November 13, 2026, by Morocco’s Minister of Economy, Finance and Public Performance, Fouzi Lekjaa, and AfDB Country Manager for Morocco, Achraf Hassan Tarsim, will finance the third phase of the Economic Governance and Climate Change Resilience Support Programme (PGRCC-Phase III).
The programme is designed to accelerate structural economic transformation, promote more inclusive growth and strengthen the private sector’s role in investment and value creation, while refocusing the state on its strategic functions.
The financing is organised around two components. The first targets public sector capacity and economic governance, including the restructuring of state-owned enterprises, modernisation of the public-private partnership framework and improvements to the business environment.
These reforms are intended to create conditions for increased private investment and support the integration of small and medium-sized enterprises into global value chains.
The second component focuses on climate and energy resilience, supporting improvements to governance in the water and electricity sectors and the integration of climate considerations into public policy. It is also intended to accelerate Morocco’s transition towards a low-carbon economy.
The programme will consolidate reforms introduced during its earlier phases while helping the country manage the economic effects of the Middle East crisis, particularly rising energy and transport costs.
Speaking at the signing, Lekjaa said: “This exemplary partnership is underpinned by the African Development Bank’s renewed confidence in the reform momentum driven under the leadership of His Majesty King Mohammed VI. This confidence is reflected in record figures, establishing our cooperation as a model partnership.”
Tarsim said: “Faced with external shocks, Morocco has chosen to act and stay the course on reforms. Our role is to support this momentum to accelerate economic transformation, strengthen growth and foster job creation.”
The operation is aligned with the AfDB Group’s Four Cardinal Points and Morocco’s national development priorities. It also forms part of the Bank’s Global Energy and Fertiliser Crisis Response Framework, which combines counter-cyclical financing with longer-term resilience measures.
The AfDB expects the programme to help Morocco preserve fiscal space and protect priority public spending while maintaining the pace of structural reforms and investment.
The financing follows the Bank’s expansion of its local-currency funding activities in Morocco. Last month, it issued its first bond denominated in Moroccan dirhams, raising 1 billion dirhams ($100 million).
The issuance added the Moroccan currency to the AfDB’s financing toolbox, supporting its efforts to develop local capital markets and diversify funding sources for operations across the continent.
