This article is part of a collaborative series with the African Development Bank to celebrate its sixtieth anniversary. To discover more about the Bank’s history and its initiatives across Africa, please visit our dedicated portal.
Morocco has become the foremost beneficiary of the Africa Investment Forum (AIF), as its railway operator, ONCF, launches a strategic initiative to improve its services with a total investment of $8.8 billion. The project attracted investor interest of $14 billion, as highlighted by African Development Bank President Akinwumi Adesina, who hailed it as a “big success” for Morocco during a press conference at the conclusion of the forum in Rabat.
Adesina also announced an upcoming $650 million loan for Morocco, pending approval from the Bank’s board. This funding aims to enhance the development of rail and airport infrastructure in anticipation of the World Cup that Morocco will co-host with Spain and Portugal.
Series of agreements
Morocco and the African Development Bank signed a total of three agreements worth nearly €350 million at the Africa Investment Forum (AIF) in Rabat. These agreements reinforce the longstanding partnership between the Bank and Morocco, spanning over five decades and covering vital sectors including health, human development, water, agriculture, energy, transportation, and finance.
The first loan agreement, worth €120 million, is intended to fund the Support Programme for Enhancing Economic Governance and Resilience to Climate Change. This initiative aims to support critical economic and sector governance reforms, particularly the ongoing restructuring of state-owned enterprises.
The second agreement, totaling €104.7 million, will facilitate a project focused on digitizing water management, which will improve technical performance throughout various Moroccan regions and urban areas, ensuring the Kingdom sustains a high quality of life for its increasingly urban population.
The third operation will allocate €120 million towards the development of the industrial park at the port of Nador West Med. This initiative is designed to expand and diversify Morocco’s port capabilities, establishing it as a key industrial logistics hub and promoting economic and social development in the eastern region. It will also aid in the creation of economic zones and industrial and logistical units within the port.
The signing ceremony featured the President of the African Development Bank Group, Akinwumi Adesina, and Nadia Fettah, Morocco’s Minister of Economy and Finance, alongside other senior officials from both the Bank and the Moroccan government.
Fettah praised the AIF for its crucial role in spurring investment for her country and the broader African continent.
“The AIF acts as a vital catalyst and represents a successful and unique investment platform that accelerates Africa’s transformation. Investors gathered in Rabat to explore, discover, and invest in viable projects, reaffirming that Africa is open for business,” she stated.
Strong partnership
During the AIF, Morocco’s Head of Government, Aziz Akhannouch, engaged in talks with President Adesina to explore ways to enhance the exceptional partnership between Morocco and the Bank.
Adesina noted that Morocco is the largest recipient of the Bank’s investments, with a financial portfolio of $3.6 billion. This year, the Bank unveiled new projects worth $1.5 billion.
Both parties expressed satisfaction with the performance of the Bank’s financial portfolio in Morocco, noting that this success was achieved despite a challenging global environment and a series of external crises. Adesina lauded the Moroccan government’s commitment to development and its steadfastness in meeting its obligations.
He emphasized that Morocco and the Bank have enjoyed a privileged partnership since 1970, during which the Bank has mobilized over €15 billion to finance around 150 projects across the Kingdom.
Engagement with international financiers
Moroccan officials also explored partnerships with the leadership of the European Bank for Reconstruction and Development (EBRD) during the AIF, showcasing the Kingdom’s intention to engage a wide range of financiers, including those from outside Africa, to achieve its development objectives.
Renaud-Basso, President of EBRD, remarked that the Bank has made substantial investments in Morocco, exceeding €400 million this year, with a primary focus on energy transition, carbon-neutral sectors, women’s integration, and economic digitization. Moreover, since 2012, Morocco has attracted €4.74 billion in investments from EBRD, with 77% of these funds directed towards supporting the private sector.
