The European Investment Bank (EIB) has revealed plans to provide Morocco with a €1 billion loan (approximately $1.06 billion) to aid the country’s efforts in rebuilding after the September earthquake. Ricardo Morinio Felix, Vice President of the EIB, made the loan announcement following a meeting with Morocco’s Minister Delegate to the Minister of Economy and Finance, Fouzi Lekjaa, in Marrakech during the annual meetings of the International Monetary Fund and the World Bank.
In September of last year, a powerful earthquake measuring 7.0 on the Richter scale struck Morocco, affecting major cities such as the capital, Rabat, Casablanca, Meknes, Fes (in the north), Agadir, and Taroudant (in the central region). The earthquake resulted in nearly 3,000 fatalities, 6,125 injuries, and extensive damage to approximately 60,000 homes.
As part of its reconstruction plan, Morocco plans to spend $12 billion over the next five years to update its infrastructure and address the aftermath of the earthquake. Finance Minister Nadia Fettah Alaoui stated in an exclusive interview with Sky News Arabia that the Moroccan government has begun providing urgent cash assistance to those affected by the earthquake, with damage assessments still ongoing.
Fettah Alaoui also mentioned that the government has implemented special programs to control inflation. To combat food inflation, taxes and fees on agricultural products have been reduced, and electricity prices have been maintained to ease the burden on households and control inflation.
She emphasized that Morocco has successfully boosted foreign investors’ confidence in the country. “Hosting the annual meetings of the IMF and World Bank reflects confidence in Morocco’s economic resilience in the face of crises,” she stated.
Fred Belhadj, Vice President of the World Bank for the Middle East and North Africa, confirmed in an interview with Sky News Arabia that Morocco’s economy is moving in the right direction. However, he noted that the competitiveness of the Moroccan economy has not been fully leveraged.
Data from the High Commission for Planning in Morocco revealed that the country’s economy grew by 2.3% in the second quarter of 2023, compared to 2.2% during the same period the previous year.
This substantial loan from the European Investment Bank will play a crucial role in helping Morocco rebuild and recover from the devastating earthquake, contributing to the nation’s long-term economic growth and stability.
