Casablanca – In a significant development aimed at bolstering Morocco’s public sector reform and enhancing service delivery, the World Bank has approved $600 million loan for the North African country. This funding, authorized by the Bank’s Executive Directors, will primarily support two pivotal projects focused on improving governance, inclusivity, and the performance of Morocco’s public sector.

The first initiative, titled “Support for Implementing Public Enterprises and Institutions Reform in Morocco,” receives $350 million. This project aims to overhaul governance structures, promote competitive neutrality, and enhance performance monitoring within state-owned enterprises (EEP). It seeks to strengthen government oversight of these entities, improve their governance and administrative practices, and establish a framework for fair competition, including climate impact considerations.

Additionally, an allocation of $250 million will further bolster the “ENNAJAA” (Efficacy) program, which aims to boost the Moroccan government’s efforts in enhancing public sector efficiency and transparency. This includes initiatives such as digital transformation and reforms in public financial management.

Jesko Hentschel, the World Bank’s Regional Director for the Maghreb and Malta, highlighted that these projects are geared towards enhancing the public sector’s performance and improving the quality of services available to Moroccan citizens. This strategic investment aligns with Morocco’s new development model, which emphasizes private sector-driven comprehensive growth.

Hentschel emphasized the priority of public enterprises and institutions reform in Morocco’s national agenda, noting recent cabinet discussions chaired by King Mohammed VI on June 1st. These discussions underscored the country’s commitment to restructuring the public portfolio, enhancing its performance, and implementing reforms to ensure accessible, high-quality public services.

The ENNAJAA program, already in its initial phases, has demonstrated notable outcomes with a significant increase in tax revenues through enhanced compliance at the national level and a marked rise in revenues collected by major municipalities locally.

The additional funding under the ENNAJAA program will further prioritize improving public expenditure efficiency and revenue management. It aims to enhance budget transparency regarding public spending and introduce climate-sensitive budgeting, marking a pioneering effort in Morocco. By the conclusion of the projects in 2028, gender-sensitive budgeting will be implemented across eight ministerial departments.

The World Bank’s support reflects confidence in Morocco’s ongoing structural reforms and its commitment to fostering a more efficient and transparent public sector. This funding is expected to contribute in advancing Morocco’s development objectives, enhancing governance, and ensuring better service delivery for its citizens.