Major financing package aims to expand job opportunities, strengthen small businesses, and accelerate the country’s transition towards clean energy and sustainable growth…reports Africa Daily Newsdesk
The World Bank has approved a $500 million financing package for Morocco aimed at expanding employment, supporting small businesses, and accelerating the country’s transition to a greener economy.
The funding, cleared by the World Bank’s Board of Directors, comes under the first phase of the Morocco Jobs and Green Growth Development Policy Loan, part of a planned three stage programme. It is designed to back reforms that improve labour market policies, strengthen private sector growth, and drive investment in clean energy and export focused industries.
The programme aligns with Morocco’s national Jobs Roadmap and focuses on creating more opportunities for young people and women. It will expand active labour market initiatives, targeting more than 330,000 job seekers by 2029, while also working to better match education and training systems with private sector needs.
A key component of the plan is boosting female workforce participation. This includes expanding access to licensed childcare services, with more than 40,000 new childcare places expected to be created. The initiative is also set to generate around 1,200 direct jobs for women within the sector.
The financing will also support reforms aimed at improving the business environment, particularly for small and medium sized enterprises. Measures include modernising insolvency frameworks to better manage financial distress, strengthening credit guarantee systems for smaller firms, and simplifying investment procedures through regional investment centres.
In addition, the programme places strong emphasis on Morocco’s green transition. It seeks to remove barriers that have limited private investment in renewable energy, while also promoting energy efficiency services. The plan further aims to expand Morocco’s pharmaceutical exports, with targets expected to grow significantly by 2029.
The World Bank said the initiative is designed to tackle interconnected challenges, including high youth unemployment, low female participation in the labour force, and constraints on private investment. It also aims to enhance the resilience and competitiveness of the energy sector, reducing vulnerability to external shocks.
Building on reforms already underway, the programme adopts a phased approach to ensure tangible results. Future operations are expected to deepen reforms, strengthen the investment climate, and support more inclusive and sustainable economic growth.
Ahmadou Moustapha Ndiaye, the World Bank’s Division Director for the Maghreb and Malta, said the reforms address long standing barriers to job creation, particularly the slow growth of high potential enterprises. He added that improving the business environment alongside targeted sector support would help firms expand, overcome financial challenges, and attract sustained investment.
