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Economy

EIB Strengthens Morocco Partnership with €1 Billion Post-Earthquake Recovery Investment

Thursday 24 October 2024 - 14:50 Journalists: Dakir Madiha

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The European Investment Bank (EIB) has strengthened its long-standing partnership with Morocco by providing a significant €1 billion loan package. This marks a notable expansion of the EIB's nearly €10 billion investment in the country since 1979.

EIB Vice President Ioannis Tsakiris outlined the bank's comprehensive plan to support Morocco's recovery from the devastating September 2023 Al Haouz earthquake and its sustainable development goals. The first €500 million tranche, secured in October 2024, focuses on rehabilitating vital infrastructure in regions impacted by the earthquake, which claimed 3,000 lives and left 5,000 injured.

Strategic Infrastructure Rehabilitation

The recovery program encompasses three primary objectives:
- Reconstruction of educational facilities serving 30,000 students
- Restoration of healthcare infrastructure
- Enhancement of transport networks in rural areas

"By incorporating seismic-resistant designs and climate resilience measures, we are ensuring that Morocco's infrastructure is better equipped to handle future challenges posed by natural disasters and climate change," Tsakiris explained.

Renewable Energy Leadership

The EIB's support extends significantly into Morocco's renewable energy sector, with notable investments including:
- Co-financing of the Noor Ouarzazate Solar Complex (580 MW)
- Development of the Noor Atlas PV plants
- Implementation of the Integrated Wind Project (850 MW)
- Construction of the Abdelmoumen Pumped Storage Power Station

These initiatives align with Morocco's ambitious target of generating 52% of its electricity from renewable sources by 2030. The country's recent announcement to create 30,000 jobs in the green hydrogen sector further demonstrates its commitment to sustainable energy development.

Economic Growth and Private Sector Development

The partnership has yielded significant economic results, particularly in export-driven sectors. Morocco recently emerged as the EU's primary automotive trading partner, with exports valued at €15.1 billion in 2023. The EIB facilitates this growth through partnerships with local financial institutions, including CIH, Banque Centrale Populaire, and Bank of Africa, supporting small and medium-sized enterprises in key sectors such as automotive, textiles, and agri-food.

Future Investment Focus

Looking ahead, the EIB plans to expand its investment in:
- Urban infrastructure development
- Climate-resilient projects
- Social infrastructure enhancement
- Export-oriented industries
- Sustainable energy initiatives

"In every sector, our ambition is to help Morocco accelerate its development agenda by providing the financing and expertise needed to build a more sustainable, inclusive, and resilient future," Tsakiris concluded.

This comprehensive partnership between the EIB and Morocco represents a strategic alignment of development goals, combining immediate disaster recovery with long-term sustainable development objectives. The collaboration showcases a model for international development partnerships that prioritize both immediate needs and future sustainability.