Morocco secures US$820m from Germany to fund development projects

MOROCCO – The Kingdom of Morocco has secured a combined total of US$820 million (€701.3 million) from the Federal Republic of Germany to support development projects in the country.

A report by Morocco World News indicates that Germany will distribute the funds to Morocco through loans and grants.

The agreements will target investments in renewable energy, energy efficiency, sustainable economic development, and water resource management in Morocco.

The initiative reflects the excellent state of affairs between the two countries and highlights Germany’s priority sectors in Morocco’s development agenda.

It also follows an earlier signing of an MoU between the Moroccan Investment and Export Development Agency (AMDIE) and the Ghorfa Arab-German Chamber of Commerce and Industry.

The AMDIE-Ghorfa agreement aims to establish a framework for cooperation to promote business opportunities in Morocco to German investors.

The MoU calls for specialized publications on the economies of the two countries to support these efforts.

A guide on investment and the business climate in Morocco is soon to be published in German and widely distributed to German economic operators.

In a joint statement, the German embassy and Moroccan ministry said the agreements align with the November 2019 Memorandum of Understanding (MoU) that established a “Partnership for Reform.”

The partnership falls under the framework of the G20 initiative Compact with Africa (CWA), promoting private investment throughout the continent.

The “Partnership for Reform” intends to support Morocco’s progress in reforming the financial sector, improving the business and investment climate, and strengthening advanced regionalization.

The partnership ultimately aims to develop the potential of Morocco’s private sector and and promote sustainable, job-creating economic growth.

Germany is quickly becoming one of Morocco’s strongest partners in Europe, with a flurry of Rabat-Berlin agreements coming into effect in 2020.

In January, the Chamber of Commerce of the Rabat-Sale-Kenitra region signed an agreement with the Training and Development Centers of the Bavarian Employers’ Associations (BFZ) to support Moroccan vocational training institutes.

In June, the two countries signed another agreement on the development of the green hydrogen production sector, the first of its kind in Germany.

The two countries’ bilateral cooperation in the field of renewable energies dates back to the 2012 signing of the Moroccan-German Energy Partnership (PAREMA).

The recent hydrogen agreement commits the Moroccan Ministry of Energy, Mines, and Environment to a partnership with the German Ministry of Economic Cooperation and Development to set up research and investment projects in the use of hydrogen for clean energy.

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