EIB strengthens Morocco’s economy with strategic investments

The European Investment Bank (EIB) is enhancing Morocco's sustainable development through significant financial and technical initiatives aimed at fostering economic resilience.

In a notable achievement, the EIB has surpassed €10 billion in investments in Morocco since its inception in 1979. This milestone coincides with the bank's proactive response to the devastating earthquake that struck Al Haouz in September 2023. The EIB is committed to supporting the country both in times of crisis and during periods of long-term development.

Milestone achievements and earthquake recovery efforts

Adrien De Bassompierre, Head of Representation of the EIB in Morocco, emphasized that 2024 was a pivotal year for the bank, marking two significant accomplishments. The first is the symbolic crossing of the €10 billion investment threshold in Morocco. The second is the EIB's commitment of €1 billion for earthquake recovery, with the initial €500 million already allocated.

The EIB's reconstruction efforts focus on restoring schools, rebuilding damaged roads, and rehabilitating health centers. This work is conducted in close collaboration with various government ministries, streamlining fund distribution through partnerships with the Ministry of Economy and Finance and a new agency dedicated to the High Atlas region's development.

To further enhance these efforts, the EIB has secured an additional €225 million grant from the European Union. This joint funding reduces financing costs for Morocco while aligning with the EIB’s mandate to support EU-Morocco partnership goals.

Technical expertise for sustainable infrastructure

Beyond financial assistance, the EIB provides valuable technical expertise. De Bassompierre noted that the bank's team of engineers plays a crucial role in supporting various sectors. In 2024, technical assistance will focus on improving rural education, rehabilitating community schools, and enhancing railway resilience against climate change.

This comprehensive approach reflects the EIB's commitment to sustainable development in Morocco, ensuring that projects are both environmentally sustainable and aligned with national priorities.

Fostering private sector growth

The EIB is increasingly concentrating on private sector support. By partnering with commercial banks, the EIB facilitates access to funding for small and medium-sized enterprises (SMEs), which are essential to Morocco's economy. Collaborations with local financial institutions like CIH and BMCE help channel financing to SMEs, promoting job creation, innovation, and women's entrepreneurship.

Looking ahead, the EIB plans to invest half a billion euros in collaboration with the Mohammed V Fund for Investment, further stimulating economic growth and entrepreneurship.

Green energy transition

The EIB is also making strides in renewable energy, planning significant investments in development and supporting infrastructure. De Bassompierre mentioned the exploration of opportunities in renewable energy, electricity networks, offshore wind potential, and green hydrogen production, aligning with Morocco's climate goals.

Sustainable mobility initiatives

Transportation infrastructure is another focus area for the EIB, targeting both intercity and urban mobility solutions. The bank has already invested in railways and highways, with plans to explore sustainable transport projects inspired by successful tramway systems in Rabat and Casablanca. These initiatives not only enhance connectivity but also help reduce carbon emissions.

Addressing water security

In response to increasing water scarcity exacerbated by climate change, the EIB has invested in water infrastructure and wastewater treatment initiatives. The bank aims to reduce water loss and promote water reuse through advanced treatment facilities, addressing immediate needs while enhancing long-term resilience.

Measuring impact and overcoming challenges

The EIB employs rigorous monitoring systems to assess the impact of its investments in Morocco. De Bassompierre highlighted that projects must be economically viable and yield positive social or environmental impacts. However, the bank faces challenges, particularly in project structuring and enhancing access to financing for SMEs.

As Morocco navigates economic transformation amid global challenges, the EIB stands as a vital partner, offering both capital and expertise to support a resilient, sustainable future for the nation. De Bassompierre noted that while challenges remain, they also present opportunities for growth and adaptation.