Casablanca – Morocco has finalized a series of international loan agreements totaling approximately $720 million to finance strategic national programs in climate action, economic development, social protection, sustainable mobility, and water resource management. The financing package represents one of the largest coordinated efforts by the Moroccan government in recent years to mobilize external funding for priority development projects.

The loans were approved through a series of decrees published in the Official Gazette, in accordance with the legal framework governing public borrowing. Each decree bears the signature of the Moroccan Head of Government and was submitted by either the Minister of Economy and Finance or the Minister Delegate in charge of the Budget, depending on the specific nature of the loan.

Green investments and low-carbon transition

A key component of the financing package is a $30 million loan from the German development bank KfW, signed on December 23, 2025, to support the “Green Invest” credit line. This initiative is designed to accelerate Morocco’s transition toward a low-carbon economy by supporting environmentally sustainable investments in both the public and private sectors. Projects financed under this credit line are expected to strengthen the country’s environmental resilience while promoting green technologies and sustainable business practices.

Economic development and social protection

Morocco also secured a $166 million loan from KfW, signed on December 16, 2025, to fund the second phase of the “Programmatic Approach – Strengthening Economic Development – Economic Inclusion and Social Protection.” The program focuses on structural reforms to reinforce the national economy, expand social protection coverage, and improve access to financial and social services for vulnerable populations. This phase continues Morocco’s ongoing efforts to implement social and economic reforms aimed at reducing inequality and strengthening institutional capacity.

Climate policy support and adaptation

Another $111 million loan from KfW, also signed in December 2025, will finance the second phase of the Climate Policy Support Program. This initiative aims to strengthen Morocco’s public climate policies, enhance energy transition efforts, and support measures for both mitigation of greenhouse gas emissions and adaptation to climate change. The loan reflects the long-standing cooperation between Morocco and Germany on climate-related projects.

Local government climate financing and sustainable mobility

The financing package includes a $222 million loan from KfW to fund the “Climate Finance for Moroccan Local Authorities – Support and Development of Mobility” program. This project provides financial resources to local governments for sustainable infrastructure investments, with a particular focus on urban transport and mobility. By supporting environmentally friendly mobility solutions, the initiative aims to reduce carbon emissions in cities and enhance local capacity for climate-resilient urban planning.

Additional climate financing

Morocco also obtained a $189 million loan from the Asian Infrastructure Investment Bank (AIIB) to provide additional funding for the national climate program, specifically the “Support for Nationally Determined Contribution” initiative. This loan strengthens Morocco’s international commitments under the Paris Climate Agreement and supports programs designed to reduce emissions and enhance climate adaptation across key sectors.

Water quality and resource management

To address increasing pressures on water resources, the government approved a $17 million loan with Invest International Capital B.V. to finance a project focused on modeling and monitoring water quality in reservoirs across Morocco. The program aims to improve scientific and technical tools for tracking water quality, strengthen water governance, and enhance national water security amid climate change challenges, including drought and declining water reserves.

Strategic significance of the financing package

In total, these loans reflect Morocco’s proactive strategy to mobilize international financing to support critical national priorities. By combining support for climate action, economic development, social protection, sustainable mobility, and water resource management, the government seeks to address both environmental and socio-economic challenges in an integrated manner.

The timing of these loans is significant, as Morocco faces a global economic environment characterized by rising borrowing costs and more stringent financial conditions. The package demonstrates the country’s ability to leverage international partnerships to secure financing under favorable terms, ensuring the continuity of key development programs while advancing its climate and social agendas.

Morocco’s $720 million financing package highlights the country’s continued commitment to sustainable development and strategic planning. By coordinating efforts across multiple sectors and with diverse international partners, the government is working to strengthen resilience, reduce inequalities, and create conditions for inclusive and environmentally sustainable growth.