Morocco: Africa Finance Corporation to Propel Crucial Financing for Local Institutions

Africa Finance Corporation, the leading infrastructure solutions provider on the African continent, has signed a Memorandum of Understanding with Morocco’s Ministry of Economy and Finance to provide project development, structuring, and financing solutions for projects in the key strategic sectors of renewable energy, transport, natural resources, heavy industries, and telecommunications.
The MOU strengthens the partnership following Morocco’s official admission to the AFC in 2021. AFC will provide innovative financing and pragmatic solutions to improve the infrastructure and industrial basis in Morocco, which is required to facilitate the domestic market competitiveness and export capacity of Moroccan companies.

Morocco has adopted a proactive policy towards sub-Saharan Africa opportunities and re-joined the African Union in order to position itself as a key player and protagonist in Africa’s economic development over the past decade. This partnership with AFC is a crucial step towards achieving the vision of transforming Africa into a thriving economic region where intra-African commerce and job creation are synonymous with political stability and economic prosperity.

H.E. Nadia Fettah, Moroccan Minister of Economy and Finance, stated, “This marks a major step in the cooperation between Morocco and the AFC and confirms the Kingdom of Morocco’s ongoing commitment to Africa’s development, in line with His Majesty the King’s vision of promoting South-South cooperation.”

Multiple government entities in Morocco, including the Ministry of Transportation & Logistics, the National Railway Operator, the Airport Authority, and the Ministry of Energy Transition & Sustainable Development, are already engaged in high-level discussions with AFC. Among the pipeline projects under consideration are the renovation and modernization of significant railway infrastructure to enhance passenger and cargo mobility between rural towns and the capital city and reduce road congestion, as well as cooperation under Morocco’s renewable energy strategy.

Samaila Zubairu, President and Chief Executive Officer of AFC, stated, “This collaboration demonstrates our commitment to advance the economic growth and industrialization of Africa in tandem with the Kingdom of Morocco’s own domestic development and regional growth priorities. We look forward to partnering with key public and private sector stakeholders to invest in sustainable infrastructure projects that accelerate manufacturing, import substitution, and beneficiation of Africa’s abundant natural resources.”

AFC invests US$11.5 billion in initiatives that combine positive social and environmental impact with superior risk-adjusted returns across 36 countries in Africa. Moody’s investment-grade rating of A3 for the corporation enables advantageous access to global capital markets. It demonstrates the confidence of Africa’s policymakers in AFC’s function as a crucial institution for sustainable economic development. AFC has recently documented an exceptional financial performance in 2022, with total assets increasing by 23% to US$10.5 billion, profits increasing by 36% to US$285.9 million, and the total number of member nations reaching 40.