The Executive Board of the International Monetary Fund (IMF) approved a financing of 415 million dollars under Morocco’s Resilience and Sustainability Facility (RSF).
The loan brings to 747 million dollars the total IMF loans to Morocco under the same facility.
“Morocco continues to make progress in bolstering its resilience against climate change and seizing the opportunities from decarbonization, under the RSF arrangement,” the IMF said in a statement.
It noted the impact of drought on unemployment and the government’s efforts to cut the fiscal deficit thanks to higher revenue.
Significant investments in water infrastructure aim at addressing water scarcity and will need to be complemented by demand management reform, the IMF said, adding that Morocco invests heavily to renewable energies to achieve its Nationally Determined Contributions (NDC) targets, reduce its reliance on imported fuels, improve firms’ competitiveness, and help create jobs.
Morocco’s efforts should focus on further liberalizing the electricity sector, greening the tax system, addressing the risks that climate change pose to the stability of the fiscal and financial systems, and protecting the country’s diminishing groundwater resources. The recently published Climate Finance Development Strategy 2030 has an important role in mobilizing private climate finance