The European Investment Bank (EIB) has mobilized a total of 617 million euros of financing (nearly 6.7 billion dirhams) for Morocco in 2020, i.e. a doubled activity compared to 2019, with accelerated disbursements, said on Tuesday Anna Barone, EIB representative in Morocco.
The Bank strongly mobilized itself within the framework of the Team Europe initiative to provide urgent and rapid support for the Kingdom in its fight against the Covid-19 pandemic, she stressed during a webinar on the results of the EIB group in Morocco during the year 2020, marked by the outbreak of the health crisis.
The EIB provided immediate cash aid and, exceptionally, the disbursement of loans already signed to support small and medium-sized enterprises, explained Barone, noting that the total disbursements of the Bank in 2020 reached a volume of 516 million euros, i.e. threefold increase than in 2018, which made it possible to provide decisive support to project holders facing liquidity constraints.
The Bank's financing in 2020 prioritized strengthening the health system (200 million euros), supporting agricultural SMEs (200 million euros), and strengthening the Caisse Centrale de Garantie (CCG) to provide liquidity to the private sector (150 million euros), as well as to the automotive sector (54 million euros). The Bank also provided support for micro-entrepreneurs through two operations in the microfinance sector (13 million euros).
This support illustrates the Bank's global and diversified approach, both in terms of sectors and beneficiaries, with the mobilization of a set of instruments adapted to financing needs (loans and guarantees, technical assistance, grants). For his part, Ricardo Mourinho Félix, EIB Vice-President for financing in Morocco, said that the record volume of EIB activity in Morocco in 2020 helped finance projects that are crucial to the country's economy in an unprecedented context.
Thanks to its responsiveness and strong mobilization, the Bank was able to support partners and project holders and mitigate the consequences of the pandemic on both the public and private sectors, he said.
He said that "our action in Morocco responds to the priorities of the European Union while being perfectly in line with the strategic objectives of the Kingdom of Morocco and those of the national recovery plan". As the European Climate Bank, "we will also back up, within the framework of the European Green Pact, the Kingdom's initiatives in terms of climate action and sustainable investment, whether in the field of energy, energy efficiency or urban mobility," said Félix, noting that the Bank's objective is to finance innovative projects that promote growth, employment and social inclusion. The EIB has provided new financing guarantees to support SMEs and the recovery of the private sector through the CCG public system, which plays a decisive role in facilitating access to loans for SMEs.
A first tranche of 150 million euros (1.6 billion dirhams) was signed in 2020 and a second of the same amount is scheduled for 2021.
To support the resilience of the agricultural sector and farmers in rural areas, the EIB has signed its first partnership with the Crédit Agricole du Maroc (CAM).
The financing of 200 million euros (more than 2.1 billion dirhams) will shore up productive and job-generating investments under the Moroccan agricultural strategy "Green Generation 2020-2030".
The Bank financed two operations in 2020 to support micro entrepreneurs. The loan of 10 million euros (approximately 108 million dirhams) to JAÏDA will finance microloans of less than 25,000 euros (approximately 270,000 dirhams) for self-employed workers, individual entrepreneurs and micro-entrepreneurs in order to promote income-generating activities.
Finally, in the automotive sector, the EIB provided 54 million euros in support to AGC Automotive Induver Morocco.
