AfDB Approves €301M to Boost Jobs and Economic Resilience in Morocco

In a powerful boost to Morocco’s economic transformation, the Board of Directors of the African Development Bank Group (AfDB) has approved approximately €301 million in funding to support job creation, entrepreneurship, and economic resilience. The funds will finance two strategic programs: the Entrepreneurship Support and Financing Programme for Job Creation (PAFE-Emplois) and the second phase of the Economic Governance and Climate Resilience Programme (PGRCC II).

This investment reaffirms AfDB’s long-standing partnership with Morocco, aiming to advance inclusive growth, strengthen the economy against global shocks, and position the country for a sustainable and innovation-driven future.

PGRCC II: Strengthening Economic and Climate Resilience

With €181.8 million allocated, the PGRCC II programme is designed to enhance Morocco’s competitiveness, economic governance, and climate resilience. The initiative focuses on:

• Modernizing critical sectors, especially water and energy, to ensure long-term sustainability.

• Attracting private investment, with a strong emphasis on the country’s new Investment Charter.

• Supporting Morocco’s New Development Model (NDM) by reinforcing structural reforms that improve economic governance and environmental adaptability.

As Morocco increasingly feels the effects of climate change, including droughts and water stress, this programme plays a pivotal role in greening infrastructure investment and ensuring the economy can adapt to environmental and market shocks.

PAFE-Emplois: Investing in Jobs, Entrepreneurs, and Small Enterprises

The PAFE-Emplois programme, backed by €119 million, targets job creation through entrepreneurship and support for very small, small, and medium-sized enterprises (VSEs/SMEs). The program is aligned with Morocco’s new employment roadmap, and it aims to:

• Improve and scale up public entrepreneurship support mechanisms.

• Promote inclusive financing options, especially for women and youth-led businesses.

• Encourage innovative approaches to job creation by developing results-based frameworks that prioritize employment impact.

• Enhance incentive structures for the growth of VSEs and startups.

This initiative reflects the government's and AfDB’s shared goal of fostering private sector-led growth, reducing youth unemployment, and building a resilient ecosystem for entrepreneurship.

Strategic Synergy and Long-Term Impact

“Together, these two new operations work in synergy and complement each other to strengthen their impact,” said Achraf Tarsim, Country Manager for Morocco at AfDB. “They combine their objectives to consolidate the economy's competitiveness, strengthen its resilience to shocks and boost investment and entrepreneurship. These are all levers for creating opportunities and jobs for young people and women.”

The combined impact of both initiatives is expected to:

• Create thousands of jobs, especially in underserved communities.

• Support public-private collaboration to make employment policy more effective.

• Advance Morocco’s transition to a green, inclusive economy.

• Increase access to finance for small businesses—a known bottleneck to private sector growth.

A Half-Century of Development Partnership

This latest funding brings the AfDB’s total investment in Morocco to nearly €15 billion, covering over 150 projects and programs over the last five decades. AfDB’s interventions span a wide array of strategic sectors, including:

• Transport and logistics infrastructure

• Social protection and inclusive education

• Water and sanitation

• Agriculture and rural development

• Energy transition and green infrastructure

• Financial sector reform and digital economy

Morocco is recognized as one of AfDB’s most important and consistent partners on the African continent. The Bank continues to provide both financial assistance and technical expertise to support Morocco’s ambitious vision for development under the NDM.

Looking Ahead: Empowering a Future-Ready Morocco

This latest €301 million package marks a forward-looking partnership that targets both immediate economic recovery—in the wake of global volatility—and long-term structural transformation. It reflects Morocco’s drive to:

• Become a regional hub for entrepreneurship and innovation.

• Reduce unemployment and poverty through sustainable livelihoods.

• Build a climate-resilient economy anchored in clean energy and efficient governance.

By investing in job creation and economic reform, the African Development Bank Group is reaffirming its commitment to inclusive, sustainable development in Morocco and setting the stage for a future-ready economy that benefits all segments of society.