EBRD, GCF, EU allocate €13 m to back Morocco’s green transition

27 / 10 / 2022

By Marwa Nassar - -

The European Bank for Reconstruction and Development (EBRD) – backed by the Green Climate Fund (GCF) and the European Union (EU) – decided to allocate a financial package of up to €13 million to Bank of Africa – BMCE Group (BOA) to support Morocco’s green transition.

Bank of Africa and its leasing subsidiary, Maghrebail, will extend the financing – of which €9.75 million will be provided by the EBRD and €3.25 million by the GCF – as sub-loans to small and medium-sized enterprises (SMEs) and other firms to support their investments in climate change mitigation and adaptation technologies.

These funds are an extension of an existing loan provided under the Green Economy Financing Facility (GEFF), signed by the EBRD and Bank of Africa in September 2021, to meet a sustained demand for green finance.

The new financing will include a technical cooperation package funded by the EBRD, EU and GCF to assist in project preparation, implementation and overall monitoring. A project consultant will also continue to provide capacity-building and awareness-raising sessions about climate change mitigation and adaptation technologies, as well as the optimal technology choices for sub-borrowers, reflecting the latest market developments. The EU will provide a €1.43 million grant, corresponding to a 10 percent average incentive for Moroccan businesses, to boost investments in climate change mitigation and adaptation technologies.

To enhance equal opportunities and address gender gaps, the facility aims to promote women’s access to climate finance, as well as to train additional BOA branch staff in gender-responsive green finance.

BOA is the third-largest bank in Morocco. The group is listed on the Casablanca Stock Exchange and is present in 32 countries, including sub-Saharan Africa, Europe, Asia and North America. It is one of the EBRD’s key partners in green finance, with €113 million in green loans extended under the scope of their cooperation.