There World Bank is preparing to approve two financings for Morocco. The first, for around 400 million dollars, concerns the “Morocco Climate & Risk Finance Program“. This results-driven program, lasting five years (2026-2031), aims to strengthen the country’s financial resilience to disasters and emerging risks, while strengthening the state’s capacities to catalyze private investment in climate-aligned projects.
Morocco is exposed to significant natural risks (earthquakes, floods, droughts), the frequency and intensity of which are exacerbated by the climate change. These risks generate significant budgetary costs and disproportionately affect vulnerable households, small businesses and fragile territories. At the same time, climate investment needs remain high, particularly in the energy, water, sustainable transport and resilient infrastructure sectors.
In this context, the “Morocco Climate & Risk Finance Program” is structured around three complementary axes. The first axis concerns the mobilization of long-term financing for climate action via the constitution of a pipeline bankable projects and the establishment of a Project Preparation Facility (PPF). This aims to accelerate the maturation of climate-compatible and bankable projects, by financing preparation activities (studies, structuring, technical assistance). The first axis aims in particular at the development of instruments for mixed financing (Blended Finance) and risk sharing mechanisms. Sectors potentially affected include renewable energy, energy efficiency, water, sustainable transport infrastructure and climate resilient infrastructure.
The second axis aims to strengthen and expand risk financing. This area aims to improve the country’s capacity to financially manage shocks linked to natural disasters and to emerging risks. The measures include, in particular, strengthening the Solidarity fund against catastrophic events (FSEC), the deepening of catastrophe insurance mechanisms as well as the development of insurance products against cyber risks. Added to this is the expansion of the use of digital payments for transfers and compensation and the improvement of financial protection mechanisms for vulnerable households and businesses.
As for the third axis of the “Morocco Climate & Risk Finance Program”, it supports the resilience of the financial sector. This area aims to improve the capacities of prudential and supervisory authorities to integrate climate, disaster and cyber risks into the regulatory framework. Planned actions include the development of climate risk assessment tools for financial institutions and the gradual integration of climate considerations into prudential requirements. They also concern the strengthening of supervisory capacities for insurance risks linked to disasters as well as the improvement of cyber risk management systems within the financial sector. The program is implemented under the coordination of the Ministry of Finance, with four key implementing entities: Directorate of Public Enterprises and Privatization, Solidarity Fund against Catastrophic Events (FSEC), Insurance and Social Security Control Authority (Acaps) and Bank Al-Maghrib.
This is the second financing from the World Bank, worth $250 million, and concerns a program to accelerate Morocco’s digital transformation. This results-oriented program has three complementary objectives. The first aims to strengthen the digitalization of administration and businesses via the foundations of e-government, the extension of digital platforms and services and support for the ecosystem: Startups/very small and medium-sized enterprises (SMEs), Offshoring and talents. The second axis aims to increase the contribution of the digital economy to growth and employment. As for the third component, it aims to consolidate the leadership and capacities of the Ministry of Digital Transition for effective implementation of the national strategy “Digital Morocco 2030”. The program will be implemented over five years, under the coordination of the supervisory ministry.
