Summary:

On 19 March 2025, the World Bank sent $600 million to Morocco as part of a loan deal to support resilience against health risks, improve human capital, reduce poverty among the elderly, and strengthen climate risk management. 

A day prior, the International Monetary Fund (IMF) allocated $496 million to Morocco within the Resilience and Sustainability Facility program which aims to support Morocco’s ecological transition and enhance its resilience to natural disasters. 

Morocco also reached a deal on 21 March with the German Development Bank (KfW) for a $100 million loan to support a national climate change adaptation program that will include water infrastructure projects and renewable energy initiatives. 

Other loans with France, Spain and South Korea were signed earlier this month to finance the purchase of new trains as part of Morocco’s rail network expansion and modernization. 

These loans come as Bloomberg reported that Morocco mandated banks to seek a Eurobond sale in an outing on the international debt market.

Outlook: 

Morocco will benefit from these recent loans to advance reforms and progress in its New Development Model (NDM) by expanding access to social services, accelerating infrastructure projects, and improving employment rate. The broad range of investments and investors shows that Morocco remains an attractive partner to European and other Western investors. 

Foreign loans are likely to remain an option for Morocco to recover from earthquakes and drought and boost its preparation to host the Africa Cup and the World Cup.  

These loans reflect a persistent confidence from international creditors in Morocco’s growth potential and its ability to repay its loan obligations. 

Morocco’s willingness to engage on issues valued by European governments and international bodies, such as climate change, will continue to put it in a leading role in North Africa as a target for investment that will benefit the overall economy. 

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