To support the “Covid-19 response support program” launched by Moroco, the Board of Directors of the African Development Bank (AfDB) has decided to grant €264 million to the kingdom.
“The program’s primary objective is to help limit the spread of the virus and further improve the effectiveness of the authorities’ health response. It will thus help increase the number of hospitals authorized to carry out virological screening,” the AfDB said in statement.
According to the AfDB, the plan will provide “access to financing for self-entrepreneurs and strengthen the cash flow of very small and medium enterprises (VMEEs). The expected outcome is to preserve 75% of jobs affected by the crisis.
According to Moroccan authorities, the health crisis, which has gripped the whole world, caused an increase in the unemployment rate, which jumped from 9.2% at end-2019 to16.9% in the first half of 2020. The figure concerns only formal sector jobs but not the informal sector where the impact of the crisis might be more alarming.
Authorities also expect poverty to hit around 10 million people with women projected to be the worst affected.
Morocco has been little affected by the new coronavirus with less than 8,000 officially detected cases and 202 deaths.
The AfDB loan will hit maturity after 20 years including a grace period of five years.