EBRD, EU and GCF strengthen green investments in Morocco in partnership with Bank of Africa

By Nibal Zgheib

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  • EBRD, EU and GCF to provide funding of up to €13 million to Bank of Africa in Morocco in addition to the €25 million already provided in September 2021
  • New finance to boost firms’ investment in climate change mitigation and adaptation
  • Facility to increase training opportunities and promote women’s access to climate finance

The European Bank for Reconstruction and Development (EBRD), supported by the Green Climate Fund (GCF) and the European Union (EU), is providing a financial package of up to €13 million to Bank of Africa - BMCE Group (BOA) to support Morocco’s green transition.

Bank of Africa and its leasing subsidiary, Maghrebail, will extend the financing – of which €9.75 million will be provided by the EBRD and €3.25 million by the GCF – as sub-loans to small and medium-sized enterprises (SMEs) and other firms to support their investments in climate change mitigation and adaptation technologies.

These funds are an extension of an existing loan provided under the Green Economy Financing Facility (GEFF), signed by the EBRD and Bank of Africa in September 2021, to meet a sustained demand for green finance.

The new financing will include a technical cooperation package funded by the EBRD, EU and GCF to assist in project preparation, implementation and overall monitoring. A project consultant will also continue to provide capacity-building and awareness-raising sessions about climate change mitigation and adaptation technologies, as well as the optimal technology choices for sub-borrowers, reflecting the latest market developments. The EU will provide a €1.43 million grant, corresponding to a 10 per cent average incentive for Moroccan businesses, to boost investments in climate change mitigation and adaptation technologies.

To enhance equal opportunities and address gender gaps, the facility aims to promote women’s access to climate finance, as well as to train additional BOA branch staff in gender-responsive green finance.

BOA is the third-largest bank in Morocco. The group is listed on the Casablanca Stock Exchange and is present in 32 countries, including sub-Saharan Africa, Europe, Asia and North America. It is one of the EBRD’s key partners in green finance, with €113 million in green loans extended under the scope of their cooperation.

Morocco is a founding member of the EBRD and became a country of operation in 2012. To date, the EBRD has invested almost €3.7 billion in the country through 89 projects.

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