Casablanca- The World Bank has approved a substantial $1 billion loan package aimed at bolstering Morocco’s resilience against a range of challenges, from health crises , climate change to socio-economic vulnerabilities heightened by global uncertainties. This significant investment is part of a multi-pronged approach to fortify Morocco’s capacity to withstand and recover from various shocks, including the lingering impacts of the COVID-19 pandemic, climate change-induced disasters, inflationary pressures, and prolonged droughts.

The loan package, consisting of two critical components, signifies a comprehensive strategy to address Morocco’s multifaceted vulnerabilities and promote sustainable development. The first component comprises a $500 million loan dedicated to enhancing health and climate resilience. This funding aims to address Morocco’s susceptibility to health crises, such as the COVID-19 pandemic and extreme weather events. It seeks to strengthen the country’s healthcare infrastructure, improve access to healthcare services, and enhance its response to climate-related risks.

Jesko Hentschel, the World Bank’s Maghreb and Malta Country Director, underscored the importance of this investment in light of Morocco’s recent challenges. He emphasized that Moroccans have weathered numerous upheavals, including the global pandemic, climate change impacts, inflation, and drought. Hentschel stated that the program supported by the loan package will play a pivotal role in expanding health insurance coverage, deploying crucial family allowance programs, and safeguarding the population against various risks, including those stemming from climate change.

The program’s objectives include expanding health insurance coverage, particularly for vulnerable populations, increasing the number of healthcare professionals, and adapting healthcare services to address health risks. Additionally, the funding will support the development of mechanisms to protect vulnerable communities against the adverse effects of climate change.

The second component of the loan package focuses on strengthening Morocco’s social protection system with a $500 million investment. This initiative aims to enhance the resilience of vulnerable populations and mitigate the socio-economic impacts of external shocks. Morocco’s economy has faced significant challenges due to the COVID-19 pandemic, prolonged droughts, and global economic uncertainties.

The funding will support the expansion of social protection initiatives, including the implementation of adaptive family allowances for children, the harmonization of social protection schemes, and the introduction of a new pension scheme for self-employed workers. These measures aim to promote the development of human capital, reduce poverty among vulnerable groups, and enhance social resilience.

Mahdi Barouni, a senior economist and co-leader of the project at the World Bank, highlighted the transformative potential of this investment. He emphasized that transforming distinct social protection schemes into an adaptive and climate-smart system will promote human capital development during childhood and better protect against the risk of poverty among older people.

The approval of the $1 billion loan package underscores the World Bank’s commitment to supporting Morocco’s efforts to build resilience and strengthen its social protection system. With this significant investment, Morocco is poised to enhance its resilience and promote sustainable development for the benefit of its citizens.