Casablanca – The International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA), both affiliated with the World Bank Group, have announced a significant partnership to expand the Tanger Med Port Complex, Morocco’s leading industrial port. This expansion aims to enhance the terminal’s capacity for trucks and passengers, positioning Morocco as a key player in regional and global trade.

The project is set to receive a loan of approximately $210 million, which includes around $50 million from IFC’s Managed Co-Lending Portfolio Program. Notably, this loan will be Morocco’s first sustainability-linked financing arrangement and one of the pioneering initiatives of its kind in the port sector across emerging markets. The funding will be tied to key performance indicators focused on promoting gender diversity and increasing the use of renewable energy.

In addition to the support from IFC and MIGA, a consortium of international banks, led by JP Morgan, is contributing a commercial loan of about $220 million. To safeguard the lenders, MIGA is providing a non-honoring guarantee that will cover potential losses due to any defaults on financial obligations by the state-owned enterprise involved in the project, protecting investments for up to 15 years.

The expansion is expected to significantly boost the port’s truck handling capacity, increasing it to over 1 million units per year, up from approximately 477,000 trucks handled in 2023. This enhancement will not only create direct employment opportunities but also stimulate economic growth and strengthen investor confidence in Morocco’s infrastructure sector.

“Tanger Med is vital for Morocco’s import and export activities,” stated Loubna Ghaleb, a member of the board and Director of Strategy at Tanger Med Group. “This project will allow us to enhance our truck handling capabilities considerably, support export growth in the agribusiness and industrial sectors, and strengthen commercial ties between Morocco and Europe.”

MIGA’s Executive Vice President, Hiroshi Matano, highlighted the importance of this initiative as part of their broader strategy. “This marks our second guarantee project in Morocco under the non-honoring product, which will play a crucial role in improving port infrastructure. We look forward to extending this support to other state-owned enterprises to enhance their productivity.”

David Tinel, IFC’s Regional Manager for the Maghreb, emphasized the strategic significance of the project. “This expansion will bolster Morocco’s position as a growing global maritime and logistics hub, ideally situated to connect critical markets in Europe, Africa, and the Americas. We anticipate that it will attract additional investments in Morocco’s infrastructure sector, especially as the country gears up to co-host the 2025 Africa Cup of Nations and welcome the FIFA World Cup in 2030.”

The Tanger Med Port Complex is the largest container port in both Africa and the Mediterranean, offering direct maritime connections to 180 ports in 70 countries. In its commitment to promoting gender diversity, Tanger Med Group is implementing initiatives to enhance women’s access to leadership positions and increase their representation in the workforce.

Additionally, as part of its clean energy strategy and decarbonization goals, Tanger Med aims to boost the share of green electricity, including solar and wind power, within its operations. The expansion project will also feature measures to address climate risks, such as elevating breakwaters and quays to counteract sea level rise and extending docks to accommodate larger, more environmentally friendly vessels.

This expansion project is not just a boost for the port itself; it represents a significant step forward for Morocco’s economic landscape, fostering growth and resilience in a rapidly evolving global trade environment.