Casablanca – The African Development Bank (AfDB) has approved a new financing package worth more than $322 million for Morocco, aimed at boosting economic competitiveness, supporting entrepreneurship, and enhancing resilience to climate-related and external shocks. The funding reflects a continuation of the strong strategic partnership between the bank and the Kingdom of Morocco, which has spanned over five decades.

The new package will support two key programs: the Entrepreneurship Support and Financing Program for Job Creation (PAFE-Emplois) and the second phase of the Economic Governance and Climate Resilience Support Program (PGRCC II). Together, these initiatives are designed to drive structural reform, create employment opportunities—particularly for youth and women—and strengthen the foundations of a sustainable and inclusive economy.

$195 million for economic governance and climate resilience

The larger share of the funding—$195 million—will go toward PGRCC II, which focuses on improving economic governance and building climate resilience. The program aims to modernize Morocco’s water and energy sectors, both of which are considered critical to the country’s economic stability and environmental sustainability.

PGRCC II supports the implementation of Morocco’s New Development Model and the Investment Charter that took effect in March 2023. It is designed to increase the country’s adaptability to climate change, while making its economy more competitive and attractive to private investment.

“The modernization of strategic sectors like water and energy is essential to securing Morocco’s long-term economic stability and to mitigating the impact of environmental and external shocks,” said Ashraf Tarsim, the AfDB’s Country Manager in Morocco.

$127 million to promote entrepreneurship and job creation

The second initiative, PAFE-Emplois, will receive $127 million and is focused on encouraging entrepreneurship and supporting small and medium-sized enterprises (SMEs) as a key engine for job creation. The program places a strong emphasis on inclusive growth, particularly by supporting projects led by young people and women.

PAFE-Emplois aims to strengthen public entrepreneurship support systems, expand access to finance for inclusive business ventures, and promote a culture of performance and impact in employment-related programs. The initiative also includes mechanisms to incentivize job creation within SMEs and to promote innovative employment models.

This program forms part of Morocco’s new employment roadmap, which seeks to improve professional integration and foster entrepreneurship across different regions and population groups.

Synergistic approach

The two programs are designed to be mutually reinforcing. While PGRCC II addresses structural and environmental vulnerabilities through policy reform and sector modernization, PAFE-Emplois focuses on mobilizing human capital and enterprise potential to absorb and sustain job creation.

“These two operations are complementary and aligned toward the same objective: to strengthen Morocco’s economic competitiveness, increase resilience to shocks, and promote strong, inclusive investment and entrepreneurship,” said Tarsim. “Together, they represent powerful tools to create employment opportunities for Moroccan youth and women.”

A long-standing development partnership

This latest financial commitment continues a long history of collaboration between Morocco and the African Development Bank. Since Morocco joined as a founding member, the AfDB has invested over $16.1 billion in the country, funding more than 150 development projects and programs.

AfDB-funded initiatives have covered a broad range of sectors, including transport, energy, agriculture, water and sanitation, social protection, financial services, and governance. The bank’s support has been instrumental in developing critical infrastructure, advancing social programs, and enhancing Morocco’s institutional capacity.

In addition to the current programs, the AfDB is preparing to launch a new initiative focused on inclusive agricultural transformation. This upcoming project, requested by the Ministry of Agriculture, will target food security, climate resilience for small farmers, and rural economic empowerment—particularly for women and youth.

Future outlook

The AfDB’s new financing package arrives at a time when Morocco is navigating a complex post-pandemic recovery, seeking to reduce unemployment, and preparing for the long-term effects of climate change. By investing in governance reform, sustainable infrastructure, and inclusive entrepreneurship, the bank is supporting Morocco’s ambition to build a resilient, green, and competitive economy.

With the new funding, Morocco is expected to accelerate the implementation of its Vision 2035 and its updated national development priorities, positioning itself as a regional model for sustainable and inclusive growth.