The African Development Bank Group has approved $487 million in funding for Morocco to support economic reforms, strengthen climate resilience and promote inclusive growth.
The approval was granted on October 21, 2026, under the third phase of the Programme to Support the Strengthening of Economic Governance and Resilience to Climate Change (PGRCC-Phase III).
The programme aims to strengthen the private sector’s role in driving investment and creating economic value while refocusing the government on its strategic responsibilities.
Abdoulaye Coulibaly, Director for Governance and Economic Reforms at the African Development Bank Group, said the funding would help Morocco withstand external economic, energy and climate shocks while advancing structural reforms to strengthen the economy.
The programme also seeks to encourage private investment, sustain economic growth and create jobs.
According to Achraf Tarsim, the Bank Group’s Country Manager in Morocco, the country has continued implementing reforms despite external shocks. He said the Bank’s support would help accelerate economic transformation, sustain growth and expand employment opportunities.
The funding will focus on two major areas. The first will improve public-sector efficiency through the restructuring of state-owned enterprises, modernisation of public-private partnership frameworks and improvements to the business environment.
These measures are expected to encourage private investment, particularly in small and medium-sized enterprises, innovation and the integration of Moroccan businesses into global value chains.
The second component will strengthen climate and energy resilience by improving governance in the water and electricity sectors and incorporating climate considerations into public policy. The measures are also expected to support Morocco’s transition towards a low-carbon economy.
The third phase builds on reforms implemented under previous stages of the programme. It also seeks to help Morocco manage the effects of the crisis in the Middle East, particularly rising energy and transport costs.
The operation forms part of the African Development Bank Group’s Global Energy and Fertiliser Crisis Response Framework. It combines short-term economic support with longer-term measures to strengthen resilience, preserve fiscal capacity and protect priority public spending while maintaining investment and reform efforts.
Since 1978, the African Development Bank Group has mobilised nearly €15 billion for more than 150 projects in Morocco. Its support has covered key sectors, including transport, energy, water and sanitation, agriculture, and social protection.
