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Economy

IFC Injects $37 Million to Modernize Morocco's Logistics Infrastructure

Thursday 24 October 2024 - 11:50 Journalists: Dakir Madiha

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In a significant move to strengthen Morocco's logistics sector, the International Finance Corporation (IFC) has announced a $37 million investment in Building Logistics Services (BLS), a key logistics operator in the North African nation. The agreement, signed during the International Monetary Fund World Bank 2024 Annual Meetings, marks IFC's continued commitment to Morocco's economic development.

Strategic Expansion and Job Creation

The investment will support BLS's ambitious expansion plans, which include the construction and acquisition of warehouse facilities across multiple Moroccan cities. This initiative aims to create 500 new jobs by 2030, contributing to the country's employment sector. BLS, a subsidiary of the family-owned H&S Invest Holding, will use the funding to modernize domestic transportation and improve logistics services throughout Morocco.

Partnership Structure

Under the agreement, IFC will acquire a minority stake in BLS, joining STOA, an impact fund established in 2017. This collaborative approach brings together international financial expertise with local market knowledge.

Environmental and Corporate Governance Focus

Moncef Belkhayat, CEO of H&S Invest Holding, emphasized that the partnership will enable the implementation of comprehensive environmental, social, and governance (ESG) policies. The company aims to establish itself as Africa's leading logistics provider in terms of environmental protection, sustainable practices, and corporate governance.

Regional Impact and Economic Development

Sergio Pimenta, IFC's Vice President for Africa, highlighted that the investment will enhance competitiveness in Morocco's logistics sector by supporting the scaling of local operations. This aligns with IFC's broader investment strategy in Morocco, where it has invested $1.3 billion over the past three years.

Future Outlook

The IFC has committed an additional $600 million in 2024 to promote Morocco's development goals across various sectors, including infrastructure, finance, manufacturing, and agribusiness. These investments are positioning Morocco as a regional hub for international connectivity, strengthening its role in global supply chains.

The partnership between IFC and BLS represents a strategic step toward modernizing Morocco's logistics infrastructure while promoting sustainable business practices and economic growth in the region.