The World Bank’s Board of Directors has approved a US$500 million financing package for Morocco under the First Morocco Jobs and Green Growth Development Policy Loan.
This initiative aims to “expand employment opportunities through improved labor market policies, more dynamic firms, particularly small and medium-sized enterprises (SMEs), and catalytic investment in clean energy, energy efficiency, and export-oriented pharmaceutical industries,” the international financial institution said in a press release.
This financing, the first in a series of three planned operations, supports Morocco’s Jobs Roadmap in areas where change can make a real difference for Moroccan citizens, the Washington-based institution explained.
According to the World Bank, the goal is to create more opportunities for youth and women by expanding active labor market programs, reaching over 330,000 job seekers by 2029, and better aligning education and training systems with the private sector’s needs.
Furthermore, the Bretton Woods institution indicated that this initiative will also support female labor force participation by boosting the availability of licensed childcare, adding over 40,000 new places and creating 1,200 direct jobs for women in the sector.
Beyond investment climate reforms, the press release noted, this operation also supports measures to improve the business environment, with a focus on small and medium-sized enterprises, as part of a broader effort to build a more inclusive and resilient economy.
Under this program, Morocco is modernizing its insolvency framework to facilitate the resolution of financial distress, strengthening credit guarantee mechanisms for small and medium-sized enterprises, and streamlining investment processes through Regional Investment Centers, the World Bank added.
As Morocco works to expand its renewable energy sector, this financing provides timely support for removing barriers that have kept private investors on the sidelines. It also supports the growth of energy efficiency services and positions Morocco’s pharmaceutical industry to expand its presence in international markets, with export targets growing nearly sevenfold by 2029.
Recognizing that job creation, business growth, and the green transition are deeply connected, the World Bank Group noted that this program is designed to tackle challenges in an integrated manner.
This includes addressing the youth unemployment and the low participation of women, cross-cutting and sector-specific constraints that are leading to below-potential private investment and reducing the energy sector’s vulnerability to external shocks and boosting its competitiveness.
Grounded in reforms already underway in Morocco, this operation brings financial backing and policy momentum to accelerate progress, the statement noted, adding that it has been structured under a programmatic approach to deliver concrete results on the ground.
As reforms take hold, the statement continued, successive operations will deepen Morocco’s transformation of its investment climate and expand green and inclusive growth opportunities, laying a foundation for lasting change.
“These reforms address one of the most persistent barriers to job creation in Morocco: the slow emergence of high-growth enterprises,” said Ahmadou Moustapha Ndiaye, Division Director for the Maghreb and Malta at the World Bank, as quoted in the press release.
He added that by simultaneously improving “the business environment, addressing sector-specific constraints, and supporting the emergence of high growth firms, this operation helps create the conditions for businesses to grow, navigate financial difficulties, and attract sustained investment.”