Casablanca – The African Development Bank (AfDB) has approved a new credit line of $175 million to Morocco’s Municipal Equipment Fund (Fonds d’Équipement Communal – FEC). The financing aims to support sustainable and inclusive investment projects and reinforce territorial development across the country.
The operation is designed to help local governments expand essential infrastructure, improve access to public services, enhance climate resilience, and strengthen connectivity—particularly in rural and underserved areas.
Supporting strategic local investments
According to the AfDB, the $175 million credit will allow Moroccan local authorities to implement priority development projects in:
- Road and transport infrastructure, improving mobility and reducing isolation in many regions.
- Drinking water supply networks, expanding access to safe and reliable water.
- Urban renewal initiatives, modernizing public spaces and improving service delivery.
- Educational, cultural, and sports facilities, strengthening social cohesion and local development.
These investments aim not only to address immediate infrastructure needs but also to improve living conditions and stimulate economic activity at the territorial level.
Second major financing operation with the FEC
This credit line represents the second large-scale financing initiative between the AfDB and the FEC. The Bank notes that the operation supports the rollout of territorial development projects that meet high environmental and social performance standards.
By strengthening the FEC’s financing and technical capacities, the Bank seeks to contribute to the emergence of more resilient, inclusive, and dynamic territories capable of responding to the needs of growing populations.
Expected economic and social impact
The $175 million operation is expected to generate multiple benefits across Moroccan regions:
- Job creation, especially through construction, rehabilitation, and public works projects.
- Improved local governance, with municipalities gaining greater capacity to manage and implement development programs.
- Greater inclusion, as improved infrastructure helps reduce regional disparities and expand opportunities for vulnerable communities.
The AfDB emphasizes that such investments are essential for strengthening the role of local authorities in Morocco’s socio-economic transformation.
Supporting Morocco’s decentralization strategy
The initiative also aligns with Morocco’s ongoing decentralization reforms, which aim to give regional and local institutions broader responsibilities in planning and managing development projects.
The credit line is expected to help:
- Diversify regional economic capacities
- Support growth in strategic sectors
- Improve climate and resilience planning at the local level
Coherence with national and continental development strategies
This operation aligns with two major frameworks:
- The AfDB’s “High 5” priorities, which emphasize infrastructure development, resilience, and improved quality of life.
- Morocco’s New Development Model, which calls for stronger territorial equity, improved public services, and modernized infrastructure systems.
According to the Bank, the project aims to contribute to a lasting improvement in living standards, strengthen the role of local governments, and support Morocco’s long-term economic and social goals.
