Morocco Secures €250 Million from German Development Bank to Fund Key Social and Environmental Projects

Thursday 28 December 2023 - 07:31

Morocco has recently finalized agreements with Germany's development bank, KfW, securing €250 million in loans and €7 million in grants. These funds are earmarked for crucial social protection, sustainable transportation, and irrigation projects.

In a ceremony held in Rabat on Wednesday, Minister Delegate to the Finance Ministry, Fouzi Lekjaa, and KfW Director, Janne Rajpar, officially signed the agreements, showcasing the robust partnership between the two nations.

The largest portion of the funding, amounting to €120 million along with a €2 million grant, is dedicated to fortifying Morocco's national social protection program, with the aim of enhancing living standards. An additional €100 million loan and a €5 million grant have been allocated to revamp urban and intercity transportation through the FART fund, promoting environmentally friendly public transit initiatives.

A separate €30 million loan has been secured to enhance water usage efficiency in irrigated agriculture downstream from the Ouljet Essoltane dam. This project seeks to optimize regulated irrigation supplies in northern Morocco.

Both Lekjaa and Rajpar expressed satisfaction with the longstanding cooperation and affirmed their mutual commitment to exploring new opportunities for KfW's financial support, emphasizing progress towards priority development objectives.

Stefan Bantle and Monika Mlad, representatives from the German Embassy, were also in attendance, highlighting Germany's role as a collaborative partner dedicated to facilitating Morocco's economic and environmental goals.

These agreements underscore Morocco's success in leveraging international partnerships, such as with KfW, to fund progressive social programs and transition towards more sustainable practices across key sectors.