Rabat, October 22, 2026 – The Europe Today: The African Development Bank (AfDB) has approved $487 million in financing for Morocco to support economic reforms, encourage private investment and strengthen the country’s resilience to external economic and climate-related shocks.
The financing package was approved by the bank’s Board of Directors on Wednesday under the third phase of the Programme to Support the Strengthening of Economic Governance and Resilience to Climate Change (PGRCC-Phase III), aimed at improving economic governance and promoting sustainable, inclusive economic growth.
The approval comes as Morocco faces mounting economic pressures arising from external shocks, including rising energy and transportation costs associated with the crisis in the Middle East. The programme seeks to build on previous reforms, strengthen economic stability and create favourable conditions for long-term development.
Abdoulaye Coulibaly, Director of the AfDB’s Governance and Economic Reforms Department, said the programme would help Morocco address economic, energy and climate-related challenges while advancing reforms to strengthen resilience and attract private investment.
Achraf Tarsim, the AfDB Group’s Country Manager in Morocco, said the country had maintained its reform agenda despite external challenges. He added that the programme would support these efforts, accelerate economic transformation and contribute to job creation.
Reforms to Boost Private Investment
A significant portion of the financing will support reforms aimed at improving public-sector efficiency and creating a more favourable business environment. Key measures include restructuring state-owned enterprises, reforming the framework for public-private partnerships and improving the overall business climate.
The initiative aims to expand the role of private enterprises in economic growth, investment and employment generation, while enabling the state to concentrate on its strategic responsibilities.
Small and medium-sized enterprises (SMEs) will be among the programme’s key priorities, alongside measures to encourage innovation and strengthen the integration of Moroccan businesses into global value chains.
Water and Energy Security in Focus
Another major component of the programme will focus on strengthening Morocco’s climate resilience, particularly in the water and electricity sectors.
The AfDB will support reforms to improve governance in both sectors and ensure that climate considerations are more effectively incorporated into public policies. These measures are also intended to facilitate Morocco’s transition towards a low-carbon economy.
Water security and energy resilience remain critical challenges for the North African country amid increasing climate pressures and fluctuations in international energy markets. The programme seeks to enhance Morocco’s capacity to respond through institutional reforms and more resilient public policies.
The latest financing phase will also help Morocco mitigate the economic consequences of the crisis in the Middle East, particularly the impact of rising energy and transportation costs. To this end, the AfDB will utilise its Global Energy and Fertilizer Crisis Response Framework (GEFCRF), combining immediate economic support with longer-term structural reforms.
Long-Standing AfDB Partnership with Morocco
The approval further strengthens the longstanding partnership between Morocco and the African Development Bank. Since 1978, the bank has mobilised nearly €15 billion to finance more than 150 projects across the country.
AfDB financing has supported a range of key sectors, including transport, energy, water and sanitation, agriculture, and social protection, contributing to Morocco’s development priorities and economic transformation.
