Casablanca – In a significant move towards bolstering Morocco’s public sector, the World Bank has granted a $350 million loan to support the Kingdom’s ambitious reform of its public institutions and enterprises (EEP). This financing agreement was formalized in a signing ceremony held in Rabat, with the presence of Nadia Fettah, Morocco’s Minister of Economy and Finance, and Jesko Hentschel, Director of the Maghreb and Malta Department at the World Bank.
Strengthening exemplary cooperation
During the ceremony, Minister Fettah highlighted that the agreement reinforces the exemplary cooperation between Morocco and the World Bank. The funds will aid the ongoing EEP reform process, initiated under the Royal Guidelines aimed at revitalizing the public sector. This reform is underpinned by the recently implemented Framework Law No. 50-21 and Law No. 82-20, which led to the establishment of the National Agency for Strategic Management of State Holdings and Monitoring the Performance of Public Institutions and Enterprises (ANGSPE).
“This agreement is a testament to the solid cooperation between our nation and the World Bank. It supports the comprehensive reform process of our public institutions and enterprises, ensuring they are more efficient, transparent, and better governed,” stated Nadia Fettah.
Strategic guidelines and long-term goals
The agreement follows the Council of Ministers’ approval, chaired by the king Mohammed VI on June 1, 2024, of the state’s strategic shareholder policy. This policy is a cornerstone of the EEP reform, focusing on reconfiguring the public portfolio, enhancing its governance, and fostering private sector investment.
Reflecting Morocco’s ambitious commitments, the World Bank-funded program aims to:
– Strengthen the state’s shareholder functions and the governance framework of EEPs.
– Reconfigure the public portfolio to enhance competitive neutrality.
– Improve the monitoring of EEP performance, including assessing climate impact.
Implementation over five years
The reform program, backed by the World Bank, will be implemented over five years. ANGSPE and the Directorate of Public Enterprises and Privatization (DEPP) will oversee the execution, ensuring coordination among all relevant stakeholders.
Broader financial support from the world bank
In addition to this specific reform loan, the World Bank approved $1.76 billion in financing for Morocco for the fiscal year 2024, supporting various critical sectors, including water, higher education, social protection, and the public sector. This funding continues the trend of substantial financial support, following $1.80 billion in 2021, $1.83 billion in 2022, and $1.85 billion in 2023.
Ceremony attendance
The signing ceremony was attended by prominent figures, including the President of the Competition Council, the Director General of ANGSPE, the Director of Public Enterprises and Privatization, and senior officials from the Ministry of Economy and Finance, underscoring the high-level commitment to this reform initiative.
This $350 million loan marks a pivotal step in Morocco’s journey towards a more efficient, transparent, and competitive public sector, reflecting the Kingdom’s dedication to robust economic reforms and sustainable development.
