This article is part of a series produced in collaboration with the African Development Bank in light of its sixtieth anniversary.
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Morocco emerged as the largest beneficiary of the Africa Investment Forum (AIF) after its railway operator, ONCF, presented a strategic plan to expand its services at a total cost of $8.8 billion. Notably, the project attracted investor interest amounting to $14 billion, according to African Development Bank President Akinwumi Adesina. He described the project as a “big success” for Morocco during a press conference at the conclusion of the Forum in Rabat.
Adesina also announced a $650 million loan for Morocco, pending approval by the Bank’s board. This loan will support the development of rail and airport transport infrastructure ahead of the World Cup, which Morocco will co-host with Spain and Portugal.
Flurry of deals
Overall, Morocco and the African Development Bank signed three agreements totalling nearly €350 million during the Africa Investment Forum (AIF) in Rabat. These agreements further solidify the Bank’s long-standing relationship with the Kingdom, which spans over 50 years and includes interventions in key sectors such as health, human development, water, agriculture, energy, transport, and finance.
The first loan agreement, valued at €120 million, will finance the Support Programme for Strengthening Economic Governance and Resilience to Climate Change. This program aims to support crucial economic and sectoral governance reforms, particularly the ongoing reform of state-owned enterprises.
The second agreement, valued at €104.7 million, will fund a project to digitise water management. It will improve technical performance in various regions of Morocco and urban areas, helping the Kingdom to maintain a high quality of life for its rapidly urbanising population.
The third operation, with funding of €120 million, will support the development of the industrial park at the port of Nador West Med. The project aims to strengthen and diversify Morocco’s port offerings, consolidating its role as an industrial logistics hub and promoting the economic and social development of the eastern region. It will also facilitate the development of economic zones and industrial and logistical units within the port.
The signing ceremony was attended by the President of the African Development Bank Group, Akinwumi Adesina, and Nadia Fettah, Minister of Economy and Finance of Morocco, along with other senior officials from the Bank and the Moroccan government.
Fettah praised the AIF for its role in catalysing investment for her country and the broader African continent.
“It is a major catalyst and a successful and unique platform for investment and for accelerating the transformation of Africa. Investors came to Rabat to prospect, identify and invest in bankable projects, and say that Africa is open to business,” she stated.
Exceptional partnership
During the AIF, Morocco’s Head of Government, Aziz Akhannouch, held discussions with President Adesina to explore ways to strengthen the exceptional partnership between Morocco and the Bank.
Adesina highlighted that Morocco is the largest beneficiary of the Bank’s investments, with a financial portfolio of $3.6 billion. This year alone, the Bank launched new projects worth $1.5 billion.
Both parties expressed satisfaction with the performance of the Bank’s financial portfolio in Morocco, as evidenced by the evaluation of various projects. This success was noted despite the challenging international context and successive external crises. Adesina lauded the Moroccan government’s efforts to drive development and its strong commitment to fulfilling its obligations.
He highlighted that Morocco and the Bank have enjoyed a privileged partnership since 1970, with the Bank mobilising more than €15 billion to finance approximately 150 projects in the Kingdom.
Engagement with overseas financiers
Moroccan officials also held discussions with the leadership of the European Bank for Reconstruction and Development (EBRD) during the AIF, underlining the Kingdom’s commitment to engaging a broad range of financiers, including those beyond the continent, to optimise its development aspirations.
Renaud-Basso, President of EBRD, highlighted that the Bank has made substantial investments in Morocco totaling over €400 million this year. These investments primarily focus on energy transition, carbon-neutral sectors, women’s integration, and the digitisation of the economy. Moreover, since 2012, Morocco has benefited from €4.74 billion in investments from EBRD, with 77% of this funding directed towards financing the private sector.