African Development Bank lends EUR 434.4 million to Morocco for public-sector reforms and climate resilience

The African Development Bank signed a EUR 434.4 million financing agreement with Morocco in Rabat on 13 November 2026 to support the third phase of the Economic Governance and Climate Change Resilience Support Programme (PGRCC-Phase III).

The agreement was signed in Rabat by Fouzi Lekjaa, Morocco's Minister of Economy, Finance and Public Performance and Governor of the Bank for Morocco, and Achraf Hassan Tarsim, the African Development Bank's country manager for Morocco. The bank said the financing is intended to accelerate structural reforms while strengthening Morocco's resilience to external and climate-related shocks.

Fouzi Lekjaa said: "This exemplary partnership is underpinned by the African Development Bank's renewed confidence in the reform momentum driven under the leadership of His Majesty King Mohammed VI. This confidence is reflected in record figures, establishing our cooperation as a model partnership."

Achraf Hassan Tarsim said: "Faced with external shocks, Morocco has chosen to act and stay the course on reforms. Our role is to support this momentum to accelerate economic transformation, strengthen growth and foster job creation."

PGRCC-Phase III maintains the programme's focus on economic governance and resilience while placing greater emphasis on the private sector as an engine of investment and jobs. The bank said Phase III will consolidate reforms from earlier phases and create conditions for private investment and for small and medium-sized enterprises to integrate into global value chains.

The bank described two main components. The first focuses on public sector capacity, including restructuring Morocco's public enterprise portfolio, modernising the public-private partnership framework and improving the business environment. The second aims to strengthen climate and energy resilience by modernising governance in the water and electricity sectors and integrating climate considerations more fully into public policy.

The operation forms part of the African Development Bank Group's Global Energy and Fertiliser Crisis Response Framework (GEFCRF). The bank said the move combines a counter-cyclical response with resilience-building, which is expected to help preserve fiscal space and priority spending while maintaining the momentum of reforms and investment.

The bank published a statement on 13 November with these details.

Newzroom dot Africa has reached out to African Development Bank for comment and is awaiting a response. This story will be updated when they respond.

Source: African Development Bank