EBRD Partners With BMCE – Bank Of Africa To Enhance Green Financing In Morocco

In a bid to bolster green lending and promote climate-resilient technologies in Morocco, the European Bank for Reconstruction and Development (EBRD) has inked a memorandum of understanding with BMCE – Bank of Africa. Under this agreement, an additional senior unsecured debt Tranche of up to EUR 10 million will be provided to BOA, doubling the total facility amount to EUR 20 million

The funds will be utilized by BOA and its leasing subsidiary, Maghrebail, to facilitate on-lending to private sector Micro, Small, and Medium-sized Enterprises (MSMEs) in Morocco. These MSMEs will invest in climate change mitigation and adaptation projects across various export value chains and sub-sectors, including agribusiness, manufacturing & services, logistics & distribution, and information & communication technologies.

The objective of this initiative is to support the development of a green economy in Morocco by enabling MSMEs to access financing for capex investments in climate-resilient technologies and services. The additional Tranche aligns with the EBRD’s Transition Impact (TI) quality, scoring 65 on the ETI scale, and contributes to the bank’s Green Transition Approach.

BMCE – Bank of Africa, a prominent private commercial bank operating in Morocco and 20 African countries, will play a pivotal role in advancing access to finance, particularly for women-led enterprises. The project emphasizes the importance of long-term financing, technical assistance, and incentive grants to promote investments in climate-resilient technologies.

Moreover, the project falls under the Environmental and Social Category (FI ESP 2019), with BOA committed to adhering to Performance Requirements (PRs) 2, 4, and 9, and national standards for environment, health, safety, and labor. Solar sub-projects funded through this initiative will be managed in accordance with the proposed management approach for solar supply chain risk management.

Technical cooperation and grant financing will further support project preparation, implementation, monitoring, and capacity-building efforts. These initiatives are funded by the EBRD Shareholder Special Fund, the European Union, the Korean Technical Assistance and Cooperation Account, and the Green Climate Fund.

The signing of this memorandum marks a significant step towards fostering sustainable development and green growth in Morocco, in line with the country’s vision for a sustainable future.