AFD will mobilize nearly 150 million euros for the benefit of Morocco over the next three months. It is support for the emergency program, in order to prepare for the end of the crisis, an acceleration of the funding of new structural policies for enhanced social protection and a revival of the economy.
“In Morocco, AFD has made an advance disbursement on operations in progress without altering their initial objectives. Over the next three months, almost 100 million euros will be paid into the state budget to finance the economic and social stabilization program and nearly 50 million euros to Moroccan public enterprises,” announced a press release.
At the same time, the Moroccan government and the French Development Agency signed on April 1 a new loan agreement of 100 million euros in support of improving the performance of municipalities. This program aims to strengthen the human and financial capacities of local authorities, which are also required to provide part of the support responses to the crisis.
Maintain access of VSMEs to finance and support the private sector
AFD has mobilized two lines of credit in favor of Finea and the “Crédit Agricole du Maroc” group, allowing VSMEs access to suitable financing. The financial resources paid in the weeks following the declaration of the state of health emergency amounted to 130 million euros.
Proparco, the AFD group subsidiary dedicated to the private sector, recently carried out a capital increase for the Oncology and Diagnostics of Morocco (ODM) group. Proparco also acquired during the month of April, alongside the SPE AIF I fund, Saham Pharma, the leading manufacturer of antibiotics and one of the main suppliers of hospitals in Morocco. A new operation in the health sector is expected to materialize by the end of 2020.
Support for new long-term policies
The AFD group should mobilize during the second half of 2020 between 400 and 550 million euros to support the new structural policies and the institutional reforms which will constitute the levers of a way out of the crisis.
A program to support reforms in the health sector and the social protection system is already in preparation with the Ministry of Health. By improving the supply of care and supporting the extension of health coverage, this program will help strengthen the performance of the health system and its ability to better resist and respond to the threats posed by the epidemic.
AFD has also started discussions with the Ministry of Agriculture for a program to support the Generation Green strategy. Taking into account the first lessons learned from the health crisis, this program will aim in particular to speed up the upgrading of food processing and marketing circuits to health standards.
AFD will also continue to provide financial support for the reform of advanced regionalization and for sustainable city programs that will contribute to the economic recovery of the regions, as well as to their social and ecological resilience.
This long-term public policy funding will be accompanied by the mobilization of expertise, in particular implemented by its future subsidiary, Expertise France, which will strengthen the group’s position as a technical partner of Morocco
“The challenge is first to mobilize short-term funding for the economic and social stabilization program,” said Mihoub Mezouaghi, director of AFD in Morocco.