MOROCCO – The European Bank for Reconstruction and Development (EBRD) has partnered with the Green Climate Fund (GCF) to provide €25 million (US$28.35m) in financing to the Moroccan Bank for Trade and Industry (BMCI).
This financing, which will support the transition to a green economy in Morocco, €23.75 million (US$26.94m) are provided by the EBRD and the remaining €1.25 million (US$1.42m) are allocated by the Green Climate Fund (GCF).
BMCI will use this funding to provide sub-loans to green economy players in Morocco. The subsidiary of French group BNP Paribas plans to provide credit to Moroccans, small and medium-sized enterprises (SMEs) and corporations for investments in climate change mitigation and adaptation technologies.
The bank will be supported in the implementation of its investment program by the European Union (EU) through technical capacity building as well as investment incentives for the development of the green economy in Morocco.
As a reminder, GEFF was set up by the EBRD in partnership with the GCF for companies and owners wishing to invest in green technologies.
The GEFF program is implemented through a network of more than 140 local financial institutions in 26 countries, supported by more than €4 billion (US$4.54m) in EBRD funding.
In September 2021, the EBRD and its partners released €50 million (US$56.71m) to support the green economy in Morocco through Crédit immobilier et hôtelier (CIH Bank) and Bank of Africa, a subsidiary of the Moroccan group BMCE. In addition to Morocco, the program also benefits Egypt.
The BMCI is in its fourth collaboration with the EBRD, after having benefited from the line of financing for the support of female entrepreneurship through the Women In Business (WIB) program in September 2018.
Also, from a line of financing for the support for green and eco-responsible projects, through the Morocco Sustainable Energy Financing Facility (MorSEFF) program in February 2019, and a financing line to support the international transactions of Moroccan exporters and importers in July 2019.
This is the second financing granted to BMCI by the EBRD under the GEFF. In 2019, the commercial bank headed by Rachid Marrakchi obtained €20 million (US$22.68m) for the financing of green projects in Morocco.
Morocco joined the EBRD as a founding member and became a country of operations in 2012. The EBRD has funded over €2.8 billion (US$3.18m) in 73 projects in the country so far.