Historic Financial Commitments by the African Development Bank
Marrakech – The African Development Bank (AfDB) has announced that its financial commitments to Morocco have soared to an unprecedented level, reaching nearly €1.3 billion in 2025. This significant announcement was made by Achraf Tarsim, the country manager for Morocco, during the AfDB's annual assemblies held in Brazzaville. The assemblies, which are taking place under the theme of mobilizing substantial resources for Africa's development, have attracted over 3,000 participants, including heads of state, finance ministers, central bank governors, and leaders from the private sector.
Tarsim emphasized that this record financing is a testament to the robust strategic partnership between Morocco and the AfDB, highlighting their mutual commitment to advancing the structural transformation of the Moroccan economy. The largest portion of these commitments, amounting to €420 million, is designated for infrastructure and connectivity projects. Notably, €270 million of this funding is earmarked for the modernization of airports in key cities including Marrakech, Agadir, Tangier, and Fez. The airport modernization project encompasses terminal expansions, the construction of a new control tower in Marrakech, taxiway development, and the implementation of sophisticated security and baggage handling systems.
Strategic Investments in Local Governance and Economic Resilience
In addition, €150 million has been allocated to the Fonds d’Equipement Communal, aimed at bolstering the investment capacities of local governments. This funding will specifically address vital areas such as drinking water, sanitation, educational infrastructure, mobility, and the development of public facilities, while systematically integrating criteria for climate resilience and environmental sustainability. Furthermore, the AfDB has mobilized €182 million to enhance economic governance and resilience within the water and energy sectors, equipping Morocco to better absorb external shocks. An additional €119 million is set aside for entrepreneurship and the growth of very small and medium enterprises, which is expected to invigorate job creation and fortify the national economic landscape.
Moreover, the agricultural sector will benefit from a €100 million investment aimed at fostering inclusive farming practices. This initiative supports women and youth entrepreneurship in rural regions, modernizes agricultural infrastructure, and improves access to financing opportunities. These record financial commitments come on the heels of two major operations recently approved by the AfDB. One such operation includes a €200 million financing package for the "Cap Compétences 2030" program, focused on enhancing employability among youth and women through skill development, inclusive training aligned with business needs, and the digital transformation of vocational training.
Additionally, the AfDB has entered into a historic agreement with OCP Group, signing a €450 million partial credit guarantee. This innovative mechanism aims to facilitate green financing initiatives, allowing Société Générale and BNP Paribas to mobilize up to €530 million to support OCP's investment program from 2023 to 2030. The funds will be directed towards projects that reduce greenhouse gas emissions, expand renewable energy capacity, and enhance water and energy efficiency across OCP's industrial operations, marking a significant step towards establishing a low-carbon, circular industrial model.
In its 2026 African Economic Outlook report, the AfDB has projected that Morocco's GDP will grow by 4.2% in 2026, driven by household consumption and infrastructure investments. Key sectors such as agriculture, manufacturing, construction, and tourism are anticipated to remain the primary engines of growth. Inflation is expected to be at 2.4% in 2026 and 2.3% in 2027, while the current account deficit is projected to widen to 3.5% of GDP in 2026 before tapering to 3.4% in 2027. The fiscal deficit is expected to decline to 3.7% in 2026 and 3.2% in 2027. The report also highlighted potential risks stemming from maritime disruptions in the Strait of Hormuz, which could elevate costs for fertilizers and energy for net petroleum importers, suggesting that proactive climate risk management and trade diversification could mitigate these impacts.
In a separate assessment, the AfDB's 2025 Africa Industrialization Index ranked Morocco as the continent's leading industrial economy for the first time, surpassing South Africa. This shift is attributed to sustained industrial modernization, export diversification, and effective implementation of industrial policy, with Morocco scoring 0.8415 compared to South Africa's 0.8396.
As reported by moroccoworldnews.com.
