AfDB and the Fonds d’équipement Communal Set to Fund Sustainable Development Projects in Morocco

The African Development Bank (AfDB), has a loan agreement with Fonds d’equipement Communal (FEC) in Rabat. This was done on March 15th, with the loan agreement amounting to EUR 100 million.

The loan is to fund new investments and get the infrastructure needed for development projects in Morocco.

The fund is to develop services in the rural areas present in Morocco. Also, to motivate economic growth and produce more employment opportunities for youths.

These goals will increase the living conditions for the people of Morocco.

“This partnership with the FEC is a first, and we’re delighted by it. Our priority, in investing in latest-generation infrastructure, is to include the territories and increase their attractiveness so that they become genuine development and competitiveness hubs.

The most important aspect is the benefit we expect for local populations,” said the African Development Bank’s Country Manager for Morocco, Achraf Hassan Tarsim.

Possible Usage Of The African Development Bank Funding

Sustainable development projects can be in the form of solar and wind farms, water management initiatives, eco-tourism projects, and advanced agricultural services.

These would create a source of income for the region, provide job opportunities, and enhance the standard of living.

The funding provided will likely bring several profitable advantages to the Moroccan economy.

It will foster an environment with a lot of opportunities and standards of living.

Also, it will help transit the country toward renewable energy development and other necessary development that the funding will make possible.

African Development Bank Funding Supports Key Growth In Economic Sector

By supporting Morocco’s shift towards decentralisation, the facility will help to consolidate and diversify the country’s production capacity and support growth in key economic sectors.

Its purpose is to increase the country’s competitiveness, create new job opportunities, including for young people and women, and generate significant tax revenues for the state.

“The conclusion of this loan agreement with the African Development Bank is part of the FEC’s strategy of opening up to international financing.

It paves the way for new bilateral operations to continue, together with confidence and determination, to finance the development of territories and support their growth dynamics,” stated Omar Lahlou, Governor and General Manager of the FEC.

Conclusion

Finally, the project is in line with the Africa Development Bank’s “High 5” strategic priorities. One of the priorities is to respond to Morocco’s plans for development, industrialization, and improving people’s quality of life.

Morocco, a founding member of the African Development Bank, is one of the institution’s main beneficiary countries, with a cumulative commitment of over USD 12 billion. This funding covers a range of sectors, including energy, water, transport, agriculture, the financial sector, and social development.