RABAT, Morocco / AfricaWire.IO / – The African Development Bank Group will provide Morocco with €434.4 million to back economic governance reforms and strengthen resilience to climate change. The financing agreement was signed in Rabat on November 13 and is worth nearly 4.8 billion dirhams. It funds the third phase of the Economic Governance and Climate Change Resilience Support Programme, known as PGRCC-Phase III. The goal is stronger, more inclusive growth that can absorb external and climate-related shocks.
Fouzi Lekjaa, Morocco’s Minister of Economy, Finance and Public Performance, signed the deal as Governor of the Bank for Morocco. Achraf Hassan Tarsim, the Bank’s Country Manager for Morocco, signed for the lender. The programme seeks to make the private sector a stronger engine of investment and value creation. At the same time, it aims to refocus the state on its strategic functions, the Ministry of Economy and Finance and the Bank said.
The operation is in line with the Bank Group’s Four Cardinal Points strategy and Morocco’s national priorities. The Four Cardinal Points form the strategic framework introduced by Bank President Sidi Ould Tah. It will also consolidate reforms launched under the programme’s earlier phases. The financing comes as the Kingdom faces spillovers from the crisis in the Middle East. Higher energy and transport costs have added pressure on the economy, and the new phase is intended to help Morocco absorb those effects.
Public enterprises and renewables in focus
The programme has two components. The first strengthens public sector capacity, including restructuring the portfolio of state-owned enterprises and modernizing the framework for public-private partnerships. It also aims to improve the business climate. The second component focuses on climate and energy resilience, with reforms to water and electricity governance and faster deployment of renewable energy.
Together, the measures are designed to accelerate Morocco’s transition to a low-carbon economy. They also aim to reduce the country’s exposure to imported energy costs. Morocco relies heavily on energy imports, which makes it vulnerable to global price shocks. Fuel price increases also feed through to transport and food costs. The Bank said the new phase supports long-term resilience as well as near-term stability.
Total support reaches about €736 million
The first phase of the PGRCC, worth €120 million, was signed in December 2024. A second phase of €181.8 million followed in 2025, according to reports. Phase III lifts total Bank support under the programme to about €736 million. It is by far the largest of the three tranches. The Middle East crisis has also raised costs elsewhere in Africa, with higher fertiliser prices putting harvests at risk.
Morocco has drawn support from several development lenders for its climate goals, including the World Bank, which is backing hydropower storage with $265 million. The country is expanding renewable power and improving water management as droughts and climate pressures intensify. The AfDB has financed projects in Morocco across energy, water, transport and agriculture. The new package adds fresh resources to that reform agenda.