The African Development Bank (AfDB) announced that it has offered Morocco two significant loans, each worth 120 million euros ($130 million). These funds aim to finance the development of an industrial zone in a northeastern port and to improve economic governance across the country.
The first loan targets the development of an industrial zone at the Nador West Med port. According to an AfDB statement, this new loan brings the bank’s total contribution to projects related to Nador West Med to 489.8 million euros. The deepwater port, currently under construction, is expected to have a capacity of 3.5 million containers and will host Morocco’s first liquefied natural gas terminal.
The second loan is intended to support Morocco’s initiatives to enhance the governance of public enterprises, improve the business climate, protect against external shocks, and strengthen resilience to climate change. These funds are part of broader efforts to boost the country’s economic framework and ensure sustainable development.
The AfDB’s involvement in the Nador West Med port project highlights its commitment to infrastructure development in Africa. This deepwater port is set to become a key logistics hub in the region, significantly boosting Morocco’s trade capacity. The industrial zone development will create job opportunities and attract investment, fostering economic growth in the northeastern part of the country.
In addition to the port project, the governance-focused loan aims to address several critical areas. Improved governance of public enterprises is expected to enhance efficiency and transparency in the public sector. By creating a more favorable business environment, the loan will encourage private sector investment, which is crucial for economic growth. Measures to protect against external shocks and improve climate resilience are also vital, given the increasing frequency and intensity of climate-related events.
The Moroccan government’s debt is projected to increase to 70.1% of GDP this year, up from 69.5% last year. Foreign debt is expected to represent 17.6% of GDP in 2024, according to central bank data. These figures highlight the importance of the AfDB loans in supporting Morocco’s economic stability and growth.
The Nador West Med port, once completed, will be a significant asset for Morocco. Its strategic location on the Mediterranean coast makes it an ideal gateway for trade between Europe, Africa, and the Middle East. The port’s capacity to handle 3.5 million containers will alleviate pressure on other Moroccan ports, such as Casablanca and Tangier, and enhance the country’s logistics capabilities.
