World Bank approves $500 million Morocco loan for jobs and green growth reforms

The World Bank has approved a $500 million financing package for Morocco under its First Jobs and Green Growth Development Policy Loan. The programme supports labour market reforms, SME development, clean energy investment, and pharmaceutical export expansion, with targets including 330,000 job seekers and over 40,000 new childcare places.

The World Bank's Board of Directors has approved a US$500 million financing package for Morocco under the First Morocco Jobs and Green Growth Development Policy Loan, according to an official announcement.

This first operation in a series of three supports Morocco's Jobs Roadmap, aiming to expand employment opportunities through improved labour market policies, dynamic firms, and catalytic investment in clean energy, energy efficiency, and export-oriented pharmaceutical industries.

The programme targets expanding active labour market programmes to reach over 330,000 job seekers by 2029, better aligning education and training systems with private sector needs, and supporting female labour force participation by adding over 40,000 licensed childcare places and creating 1,200 direct jobs for women in the sector. It also modernises Morocco's insolvency framework, strengthens credit guarantee mechanisms for SMEs, and streamlines investment processes through Regional Investment Centres.

This development matters for Morocco's economic transformation, where youth unemployment remains elevated and female labour force participation is low. The integrated approach addresses cross-cutting constraints that have led to below-potential private investment while reducing the energy sector's vulnerability to external shocks.

For the renewable energy and pharmaceutical sectors, the financing supports removing barriers to private investment in clean energy and positioning Moroccan pharma for international markets, with export targets growing nearly sevenfold by 2029. Stakeholders including SMEs, women entrepreneurs, and green technology firms stand to benefit from improved business environment and sector-specific reforms.