01 August 2015, Sweetcrude, Abidjan – The African Development Bank Group (AfDB) and the Government of the Kingdom of Morocco signed on 28 July 2015 three funding agreements in Casablanca, Morocco, for one loan and two grants to a total of $114.5 million, or about 1.13 billion dirhams. The signing ceremony was co-chaired by the Moroccan Minister of Economy and Finance, Mohammed Boussaid, and the President of the AfDB, Donald Kaberuka.
The funding of a loan of $112.5 million for the Programme to Support the Competitiveness of the Moroccan Economy (PACEM) is a first response by the Bank to enable Morocco to overcome constraints jointly identified when conducting the Growth Diagnostic. The reforms supported will enable improvement not only of the climate for private investment (the legal framework, business climate and entrepreneurship) but also of the effectiveness of public investment (governance and procurement).
Implementation of these reforms will also be helped by strengthening two institutions, thanks to two grants.
The first, of approximately $1.1 million to the Head of Government’s Office, will provide support for the creation of a pilot business intelligence unit to strengthen the service coordination role of the Head of Government.
The second grant, also of $1.1 million, will go to the Treasury and External Finance Department and will enable this institution, which coordinates foreign finance and manages the debt, to better meet new world challenges.
The AfDB stressed that the authorities have put significant structural reforms in place throughout recent years that have improved the macroeconomic fundamentals and sustained growth. This is why the AfDB has every confidence in Morocco’s ability to implement these programmes for the reform and capacity-building of institutions, in order to promote stronger, more resilient and more inclusive growth.
The Bank’s asset portfolio in Morocco consists of 33 current operations with a net commitment of some 21.3 billion dirhams. The average value of each of these operations is 140 million UA. The portfolio is predominantly composed of the infrastructure sector (including transport, energy, water and sanitation) and governance.