Casablanca – Morocco and Germany have taken a new step in strengthening their long-standing development partnership with the signing of three major financing agreements worth a combined $495 million, reinforcing cooperation in climate action, social protection, and rail transport infrastructure. The agreements, concluded in Rabat, reflect a shared commitment to supporting Morocco’s structural reforms and long-term development priorities.

The financing package was signed between Morocco’s Minister Delegate in charge of the Budget and senior leadership of Germany’s development bank, KfW, in the presence of Moroccan government officials and German representatives. These agreements form part of a broader framework of cooperation that positions Germany as one of Morocco’s most significant bilateral development partners.

Focus on climate resilience and low-carbon transition

One of the three agreements is dedicated to climate policy support, with an allocation of $110 million. This funding targets the second phase of Morocco’s climate policy reform program, which aims to strengthen national resilience to climate change while accelerating the transition toward a low-carbon economic model.

The program supports policy measures and institutional reforms related to climate governance, mitigation, and adaptation. It aligns with Morocco’s national climate commitments and its long-term strategy to reduce greenhouse gas emissions while safeguarding economic growth. The financing also contributes to improving coordination across sectors such as water, energy, and finance, which are increasingly exposed to climate-related risks.

This climate-focused support complements earlier initiatives backed by Germany, including additional financing for climate reform programs and investments in renewable energy and water resource management.

Expanding social protection and labor market inclusion

A second agreement, amounting to $165 million, targets the expansion and consolidation of Morocco’s social protection system. This financing supports the second phase of a national reform aimed at strengthening social safety nets and improving economic inclusion.

Key components of the program include direct social assistance mechanisms and active labor market policies designed to promote employment. Particular attention is given to young people who are not in employment, education, or training (NEETs), a group that remains a priority within Morocco’s broader employment strategy.

The program seeks to improve access to social protection, enhance income security, and support workforce integration, while contributing to social stability and long-term economic resilience. German support in this area builds on previous cooperation focused on institutional reform and capacity building within Morocco’s social sectors.

Rail transport and regional connectivity in Casablanca-Settat

The third agreement, valued at $220 million, focuses on the development of a mobility and logistics platform in the Casablanca-Settat region, implemented through Morocco’s national rail operator. The project aims to modernize rail infrastructure, upgrade stations, and improve rail services in Morocco’s most economically dynamic region.

This investment responds to rising mobility demand, urban expansion, and congestion challenges, particularly in and around Casablanca. By strengthening rail transport, the project is expected to improve regional connectivity, support economic activity, and encourage a shift toward more sustainable modes of transportation.

The initiative is part of a broader strategy to modernize Morocco’s transport systems and promote integrated territorial development. It also aligns with climate objectives by supporting lower-emission transport solutions.

Part of a larger financial cooperation framework

The newly signed agreements bring the total value of financial contracts between Morocco and Germany to approximately $7.7 billion, in addition to an estimated $550 million in technical assistance provided over the years. This long-term cooperation spans multiple sectors, including water management, agriculture, energy, climate reform, social protection, and green finance.

In 2025 alone, Germany has mobilized more than $660 million in new financing for Morocco, reflecting a commitment to significantly scale up development support. German officials have indicated that the objective is to further increase financing volumes and expand cooperation, including through greater engagement with the private sector.

Alignment with national development priorities

Moroccan authorities have emphasized that these financings are closely aligned with national priorities, particularly in the areas of climate action, energy transition, territorial development, and social inclusion. The agreements also support Morocco’s internationally submitted climate commitments and its broader reform agenda aimed at strengthening resilience and competitiveness.

Beyond their financial dimension, the agreements are intended to support structural reforms and institutional modernization, contributing to long-term economic transformation rather than short-term funding needs.

A long-term strategic partnership

The Morocco–Germany partnership, which has developed over several decades, continues to evolve toward a more strategic and results-oriented model. Through large-scale, multi-sector financing and policy-based support, Germany has positioned itself as a key partner in Morocco’s efforts to address climate challenges, modernize infrastructure, and strengthen social cohesion.

The latest agreements underscore a shared vision centered on sustainable development, inclusive growth, and long-term resilience. As Morocco advances its reform agenda, bilateral cooperation with Germany is expected to remain a central pillar in financing and supporting these strategic ambitions.