Morocco receives €320 million boost from European Investment Bank in 2023

The European Investment Bank (EIB) significantly increased its support for Morocco in 2023, allocating €320 million (3.5 billion dirhams) to projects focused on regional economic development, sustainable forest management, and support for small and medium-sized enterprises (SMEs). This brings the total EIB investment in Morocco between 2015 and 2023 to €3.1 billion.

The distribution of EIB investments since 2015 reflects a focus on crucial areas: forestry and agriculture (4%), water (6%), health (6%), education (6%), and industry (9%). Transport (15%) and energy (17%) received larger shares, while lines of credit accounted for 36%. Notably, investments tripled from €90 million in 2015 to €320 million in 2023. The year 2020, marked by the COVID-19 pandemic, saw a peak investment of €617 million to support economic recovery.

In 2023, €215 million went towards public sector projects in agriculture, forestry, fishing, and construction. Additionally, €105 million supported the private sector, primarily MSMEs, according to Adrien de Bassompierre, head of the EIB representation in Morocco, during the financial institution’s annual results presentation held Thursday. The EIB also maintained significant financial support with €161 million allocated to economic recovery.

The EIB is exploring potential support for post-earthquake reconstruction initiatives with a planned investment of €1 billion in the coming years. They are also considering a €500 million contribution to the Mohammed VI Investment Fund (FM6I) focused on green infrastructure and innovation projects.

Regional development and green investments

The EIB is actively supporting sustainable development in Morocco. The financial institution allocated a €100 million loan (1.08 billion dirhams) to the Inclusive and Sustainable Forests Program (2023-2028), managed by the National Agency for Water and Forests. This project aligns with the EU Green Earth program and the «Forests of Morocco 2020-2030» strategy, aiming to promote sustainable forestry practices and improve the socio-economic conditions for communities around forests.

The EIB also invested €115 million (1.3 billion dirhams) in Technopoles II, a subsidiary of Caisse des Dépôts et de Gestion (CDG) MEDZ. This investment supports the expansion of 10 technopoles across five Moroccan regions. «This aligns with Morocco's New Development Model and the EU Agenda for the Mediterranean, promoting regional development, innovation, and climate resilience», Adrien de Bassompierre said. The expansion is expected to create 51,500 jobs and «contribute to reducing regional disparities».

In the banking sector, the EIB provided a €50 million line to Banque Centrale Populaire (BCP) to support small and medium-sized enterprises (SMEs) in Morocco. Additionally, they launched an educational guide on decarbonization for national SMEs, in collaboration with Moroccan employers. They also granted a credit line of MAD 605 million (€55 million) to CaixaBank to further support SMEs.

The EIB plans to continue its support for Morocco in 2024, focusing on key areas outlined in the New Development Model. This includes supporting the Teams Europe Initiative (TEI), post-earthquake reconstruction efforts, and the private sector, particularly through the Mohammed VI Investment Fund (FM6I). Renewable energy, innovation, water, education, and transport remain priorities, with a planned total investment of €320 million. Notably, there will be a focus on education and additional resources allocated to regional development and climate change mitigation efforts (totaling €5 million).