The World Bank approved a new US$500 million loan to support Morocco’s social welfare program and related health reforms, announced the Bank on Tuesday in a press release.
This funding marks the second installment in a series of three operations aimed at supporting the government’s reform program.
The loan is intended to enhance the protection of the most vulnerable populations against health and climate risks, expand the social protection system, and bolster resilience against catastrophic events.
The Strengthening Human Capital for a Resilient Morocco Development Policy Financing Program, as described by the bank, focuses primarily on vulnerable segments of the population impacted by various natural and anthropogenic disasters affecting Morocco, including those resulting from COVID-19, drought, climate change, international conflicts, inflation, and the recent Al Haouz earthquake.
“Moroccans are showing great resilience, but to support them in this effort, the government will continue to expand health insurance coverage, promote greater access to affordable health care countrywide, strengthen governance in the health care sector, support the implementation of the direct social benefits program, and improve protection against climatic risks,” said Jesko Hentschel, Country Director for the Maghreb and Malta at the World Bank.
The press release highlighted the Moroccan government’s significant progress in implementing reforms over the past year, with the number of people eligible for Mandatory Health Insurance (AMO) more than doubling from 10 million to 22 million; more specifically, the number benefiting from the medical assistance plan (RAMED) is projected to increase from 10 million to 22 million eligible for AMO-Tadamon and AMO-TNS.
The second round of financing will help to re-format health services to better respond to the aforementioned health risks.
The financing will also support the adaptation of health services to contribute to the creation and implementation of the direct social benefits program announced by King Mohammed VI in October, 2023.
It will also aid in strengthening the institutional and collaborative framework for disaster and climate-related risk management, as well as in developing insurance schemes and other resiliency mechanisms to protect vulnerable farmers against extreme climate events.