Casablanca – The European Bank for Reconstruction and Development (EBRD) has approved two new loans totaling $76 million for Bank of Africa (BOA). This initiative aims to accelerate Morocco’s transition to a green economy by financing renewable energy projects, energy efficiency improvements, and climate change adaptation efforts.
Strengthening Morocco’s green investment framework
These loans are part of the Green Economy Financing Facility (GEFF), a program designed to support private sector investments in sustainable technologies and infrastructure. By working with local financial institutions like BOA, the EBRD facilitates access to funding for Moroccan businesses committed to environmentally responsible growth.
As one of Morocco’s leading banks, BOA holds a 17% market share in loans, deposits, and assets. Through its network, including its leasing subsidiary Maghrebail, BOA will distribute these funds to companies looking to invest in eco-friendly and energy-efficient projects.
Two key loans to support sustainable growth
The first loan, GEFF III, provides $38 million, with an additional $9.5 million in co-financing from the Green Climate Fund (GCF). It is aimed at small and medium-sized enterprises (SMEs) and mid-cap companies, supporting investments in:
- Small-scale renewable energy solutions
- Energy-efficient technologies
- Green buildings and eco-friendly construction
- Circular economy initiatives
- Climate adaptation projects, including water conservation and sustainable land management
- Digital transformation in sustainability sectors
- Blue economy initiatives
The second loan, MIDGEFF, also amounts to $38 million, with an additional $3 million provided by Canada through the High-Impact Partnership on Climate Action (HIPCA) fund. This financing is designated for mid-sized green investments, focusing on:
- Industrial energy efficiency projects
- Sustainable infrastructure development
- Wastewater treatment and water desalination initiatives
- Circular economy innovations
Technical support and financial incentives for businesses
Alongside these loans, a technical assistance program will be implemented to help BOA assess and manage funded projects. This initiative is supported by the European Union (EU) under Morocco’s Decarbonization and Climate Resilience Program (MDCR).
To encourage businesses to embrace green investments, the EU will also provide financial incentives for companies participating in GEFF III. Additionally, a specialized training program in green finance and sustainable technologies will be offered to women entrepreneurs, ensuring more inclusive participation in Morocco’s ecological transition.
A strong commitment to sustainable development
The expanded partnership between the EBRD and BOA is a significant step in strengthening Morocco’s green finance sector. By securing these $76 million in loans, Bank of Africa continues to play a leading role in supporting businesses that prioritize sustainability, energy efficiency, and environmental resilience.
