Rabat. The African Development Bank (AfDB) has signed a pound 434.4 million financing agreement, equivalent to about $479 million (Sh1.25 trillion), with Morocco to strengthen the country’s resilience to climate and energy shocks while supporting economic reforms and private-sector investment.
The agreement, signed in Rabat on November 13, 2026, will finance the third phase of the Economic Governance and Climate Change Resilience Support Programme, which seeks to improve the business environment, promote inclusive economic growth and strengthen the private sector’s role in driving investment.
The funding will support reforms in state-owned enterprises, improvements to the public-private partnership framework and stronger governance in the water and electricity sectors. It will also help Morocco integrate climate considerations into public policy and accelerate its transition to a low-carbon economy.
The financing is also intended to help the North African country manage the economic effects of the ongoing crisis in the Middle East, particularly rising energy and transport costs.
Morocco’s Minister of Economy, Finance and Public Performance, Fouzi Lekjaa, and AfDB Country Manager for Morocco, Achraf Hassan Tarsim, signed the agreement on behalf of their respective institutions.
The operation forms part of the bank’s Global Energy and Fertiliser Crisis Response Framework, which combines measures to address immediate economic pressures with longer-term efforts to strengthen resilience.
The latest agreement follows the bank’s introduction of the Moroccan dirham into its financing operations last month, when it issued its first bond denominated in the currency, raising one billion dirhams (about $100 million or Sh261 billion).