Casablanca – In a strategic move aimed at bolstering its transition to a more sustainable economy and enhancing resilience against natural disasters, Morocco has secured substantial financing from the International Monetary Fund (IMF). The first tranche of this financing, totaling 3.3 billion dirhams (approximately $340.2 million), was disbursed in March, marking a pivotal step in Morocco’s economic agenda.

The financing, part of a broader $1.3 billion loan agreement under the Resilience and Sustainability Facility, was approved by the IMF’s Board of Directors in September 2023. This agreement signifies a concerted effort to support Morocco’s green economy initiatives and fortify its ability to withstand climate-related challenges.

During a strategic meeting with IMF experts, Morocco’s commitment to implementing various measures to enhance economic resilience against climate change impacts was scrutinized. These measures encompass initiatives such as promoting renewable energies and proactively managing water scarcity, reflecting Morocco’s proactive stance towards environmental sustainability.

Anticipated disbursements of the remaining portions of the loan are expected before the year’s end and into the following year. This timeline aligns with collaborative efforts between IMF experts and Moroccan authorities, particularly the Ministry of Economy and Finance, to ensure the effective implementation of agreed-upon measures.

Furthermore, Morocco’s dedication to national initiatives, including the provision of drinking water and irrigation, alongside strategies to achieve carbon neutrality by 2050, has garnered praise from IMF experts. Recommendations, such as adjusting the value-added tax on fossil fuels, underscore Morocco’s commitment to sustainable development goals.

In addition to the Resilience and Sustainability Facility, Morocco benefits from another IMF agreement, the Flexible Credit Line, valued at $5 billion until April 2025. This financing serves as a vital safeguard against potential future economic uncertainties.

The IMF’s satisfaction with Morocco’s economic policies and institutional frameworks is evident, as reflected in the Executive Board’s commendation of Morocco’s resilience and effectiveness in managing economic challenges. As the IMF continues to review and support Morocco’s economic strategies, the partnership between the two entities is poised to drive sustainable growth and development in the region.