The International Monetary Fund greenlighted this week the release of $496 million for Morocco under a Resilience and Sustainability Facility (RSF) to help the north African country address climate challenges.
The new funding brings the total disbursement of the IMF under the RSF to about $1.24 billion.
The IMF had approved a $1.32 billion loan under the same facility to help Morocco address climate vulnerabilities, bolster its resilience against climate change, and seize the opportunities from decarbonization.
Measures implemented under the RSF arrangement “aim to better protect underground water resources, prepare the ground for a change in tariffication of water, improve the regulatory setting of the electricity market to encourage private sector’s production of renewable energy, and reinforce fiscal and financial systems’ resilience to climate change-related risks,” the IMF said.
It expects Morocco’s economic growth to accelerate to 3.7% over the next few years, from 3.2%.
“The Moroccan economy continued to show resilience to negative shocks, a testament to the country’s very strong economic policies and frameworks,” Kenji Okamura, Deputy Managing Director and Acting Chair said following the IMF decision.