The financing will support private investment, public enterprise reforms and stronger water and electricity governance as Morocco works to reduce its exposure to external shocks.
The African Development Bank (AfDB) has approved $487 million in financing for Morocco to accelerate economic reforms, strengthen the business environment and improve the country’s resilience to climate and energy pressures.
Approved by the bank’s Board of Directors on October 21, 2026, the funding supports the third phase of the Programme to Support the Strengthening of Economic Governance and Resilience to Climate Change. The operation builds on earlier reforms aimed at creating conditions for more inclusive and resilient economic growth.
Strengthening the conditions for private investment
A central focus of the programme is strengthening the private sector’s role in Morocco’s economy. The financing will support the restructuring of state-owned enterprises, improvements to the framework for public-private partnerships and reforms designed to make the business environment more conducive to investment.
These measures seek to improve how the public sector operates while creating more opportunities for private businesses to contribute to economic activity.
Small and medium-sized enterprises are also a priority. The programme will support measures encouraging entrepreneurship and innovation, recognising the role smaller businesses can play in broadening economic participation and generating employment.
For investors, the significance extends beyond the financing itself. The reforms target the institutional conditions that influence business decisions, including how public enterprises operate and how public and private partners work together.
Improving water and electricity governance
Alongside its economic objectives, the programme will support reforms to water and electricity governance as Morocco seeks to strengthen its ability to manage climate and energy shocks.
The two sectors are closely linked to business continuity and economic development. Reliable electricity supports industrial production and commercial activity, while water availability affects agriculture, manufacturing and communities.
By addressing governance in both areas, the programme aims to reinforce the foundations of a more resilient economy.
Abdoulaye Coulibaly, the AfDB’s director of governance and economic reforms, said the bank’s ambition is to help Morocco cushion external shocks, whether economic, energy-related or climatic.
Responding to external cost pressures
The approval comes amid rising energy and transport costs linked to the Middle East conflict, adding pressure to the economic environment in which Morocco is implementing its reforms.
The financing combines support for longer-term structural changes with efforts to strengthen the country’s capacity to respond to immediate challenges. Improving the business environment and the governance of essential services could help Morocco manage these pressures while maintaining investment momentum.
Building on a longstanding partnership
The package adds to decades of cooperation between Morocco and the African Development Bank. Since 1978, the institution has mobilised nearly €15 billion for more than 150 projects in the country.
The latest approval continues that partnership, with a focus on strengthening private investment and improving Morocco’s capacity to withstand economic, climate and energy disruptions.
