Casablanca – In 2025, the European Bank for Reconstruction and Development (EBRD) significantly increased its financial engagement in Morocco, investing approximately $1.06 billion—a record level that underscores the Kingdom’s strategic importance within the Bank’s Southern and Eastern Mediterranean (SEMED) region portfolio. This figure, up sharply from around $625 million in 2024, reflects both accelerated financing activity and a shift toward sustainable and private-sector-driven growth.
Record growth in investments
The EBRD’s investment of nearly $1.06 billion in Morocco accounted for close to one-third of the Bank’s total SEMED commitments in 2025. Across the region, the EBRD mobilized about $3.30 billion in funding for 65 projects in six economies—Morocco, Egypt, Jordan, Tunisia, Lebanon, and the Palestinian territories.
This performance represents a significant increase compared with 2024, reinforcing Morocco’s role as one of the leading recipients of EBRD support in the region. The expanded investment portfolio comes amid broader economic challenges in the Mediterranean basin, including fiscal pressures and slowing growth, highlighting investor confidence in Morocco’s ability to deploy structured financing effectively.
Green transition takes priority
A defining characteristic of the 2025 financing round was the strong emphasis on environmentally sustainable projects. More than 80% of EBRD’s investment in Morocco was categorized as green, aligning with both international climate commitments and the Kingdom’s sustainability objectives.
Among the largest single operations was a $354 million sustainability-linked loan to the National Office of Electricity and Drinking Water (ONEE), intended to bolster the institution’s financial resilience while supporting its shift toward lower-carbon energy generation. It is the first loan of its kind in the SEMED energy sector, tying financing conditions to measurable sustainability outcomes.
Another major green-oriented program involved water resource management. The EBRD allocated roughly $177 million to the final phase of the Saïss Plain water conservation initiative—an effort designed to improve irrigation infrastructure for 20,000 hectares of farmland and enhance living conditions for about 1.8 million people. This project responds not only to environmental priorities but also to broader economic pressures, given the growing scarcity of water and its impact on agriculture, employment, and livelihoods in Morocco.
Supporting the private sector through financial institutions
While public entities absorbed a large share of the Bank’s capital in Morocco, the private sector remained a key focus, capturing roughly 33% of EBRD investments in the country. Rather than direct lending to individual firms, the Bank opted for a strategic approach of enhancing the lending capacity of Moroccan financial institutions to catalyze broader economic effects.
Under the Moroccan Decarbonization and Climate Resilience Program, dedicated credit lines were extended to several banks, including:
- Bank of Africa — approximately $83 million
- Crédit du Maroc — around $59 million
- Saham Bank — roughly $65 million
- BMCI — about $77 million
These funds are aimed at supporting small and medium-sized enterprises (SMEs) engaged in energy efficiency, renewable energy, and climate adaptation activities.
According to industry observers, early results show uptake by industrial and agricultural enterprises seeking to modernize equipment and adopt more sustainable practices, particularly in contexts where traditional credit channels have tightened.
Role in regional investment architecture
Across the broader SEMED region, the EBRD’s record engagement in 2025 positioned the area as one of the Bank’s most significant investment zones globally. With about $3.30 billion deployed, the region ranked third worldwide in terms of total EBRD commitments for the year.
Egypt remained the largest single beneficiary, receiving an estimated $1.54 billion—about 46% of regional investment—while Tunisia and Jordan followed with approximately $470 million and $237 million respectively. Investments in Lebanon and the Palestinian territories remained more limited, at approximately $26 million and $33 million.
Additionally, 2025 marked the EBRD’s first financing activity in Iraq after the country was granted operational status. The Bank provided a $100 million trade finance facility to the National Bank of Iraq to support cross-border commercial activity.
Outlook and impact
Analysts view the EBRD’s 2025 engagement in Morocco as more than a statistical milestone—it represents a shift toward financing that blends infrastructure development, environmental sustainability, and private sector growth.
For Moroccan policymakers and economic stakeholders, the challenge now lies in translating these financial commitments into measurable outcomes: sustainable economic expansion, job creation, and enhanced resilience in both urban and rural sectors. Observers note that the success of this strategy will depend on continued institutional capacity, market reforms, and a supportive regulatory environment.
In this context, the EBRD’s strengthened financial presence reinforces Morocco’s role as a key partner in regional development efforts while contributing to broader goals of climate adaptation and private sector dynamism.
