The African Development Bank (AfDB) on Thursday announced it is providing €120 million to fund the first phase of Morocco’s new program aimed at strengthening good governance and enhancing resilience to external shocks, including climate change.
Morocco’s Program to Support the Strengthening of Governance and Resilience to Climate Change (PGRCC) is designed to drive reforms that will boost Morocco’s economy while strengthening its ability to cope with external pressures, such as fluctuations in energy prices and climate-induced challenges.
Over the past decade, Morocco has undertaken extensive structural reforms and invested heavily in infrastructure, with public investment rising from MAD 167 billion to MAD 335 billion between 2011 and 2023.
However, the country’s economic growth remains highly vulnerable to adverse climate conditions due to rainfall-dependent agriculture.
Morocco’s economy also has a high exposure to energy market volatility, given its reliance on energy imports — the country imports 90% of its energy needs.
The PGRCC aims to address these issues by implementing key reforms in economic and sectoral governance, focusing on the management of public entities.
The program is part of a broader effort to realign Morocco’s development model, concentrating the public sector on its strategic and regulatory public service roles while fostering private investment and economic competitiveness.
Beyond improving good governance and performance in the water sector, as called for by King Mohammed VI in his recent Throne Day speech, the program should enhance the country’s resilience to climate change and reduce economic volatility.
It will also support the development of renewable energy sources, further advancing Morocco’s energy independence.
The PGRCC is expected to significantly strengthen the governance of public agencies and institutions, boost the private sector’s role in economic growth and transformation, and create a more competitive business environment.
By improving governance in the water sector and reducing the economy’s vulnerability to the lack of water, the program aims to enhance Morocco’s resilience against climate change impacts and increase energy independence through greater reliance on renewable energy sources.