The French Development Agency (AFD) and Crédit Agricole du Maroc (CAM) signed a MAD 560 million (50 million euros) line of credit and concluded a subsidy agreement for MAD 16.8 million (over 1.5 million euros) in favor of farms and agro-industrial units. The aim is to encourage projects with an impact on sustainable development and the protection of natural resources.
The French Development Agency (AFD) is once again standing alongside the agrarian bank of Morocco-Crédit Agricole du Maroc (CAM). The agency has granted a subsidy of MAD 16.8 million (over €1.5 million) to farms and agro-industrial units. This agreement comes after the signing of a credit line of MAD 560 million (€50 million). The AFD’s investment will enable CAM to promote projects that have an impact in terms of sustainable development and the protection of natural resources in Morocco.
Among other things, Morocco’s agricultural bank will have to support and strengthen its actions to support the agricultural and agro-industrial sectors and continue to effectively implement its mission of public service and support for disadvantaged populations. Projects that contribute to the deployment of more sustainable and local agriculture are particularly targeted, including integrated irrigation, energy efficiency, organic farming, agricultural waste treatment and local farming.
Appropriate support, both technical and financial, will thus be offered to project leaders for setting up or converting to organic farming, reusing agricultural waste or developing renewable energies. The grant will also help structure and enrich CAM’s offer in terms of financing sustainable agriculture.
“We are particularly pleased with this grant as it is the fourth line set up in our favor by AFD“, said Tariq Sijilmassi, CAM Group’s Chairman of the Management Board.
This new agreement is in line with the objectives pursued by the new strategy of the Moroccan Ministry of Agriculture, Maritime Fisheries, Rural Development and Water and Forests. Called “Generation Green 2020-2030”, this strategy aims at consolidating the agricultural sectors in order to double the agricultural Gross Domestic Product (GDP) to reach 200 to 250 billion Dirhams (more than 23 billion euros) by 2030. This ambition also aims at doubling the value of Moroccan exports to reach 50 to 60 billion dirhams (4.6 to 5.5 billion euros).
The implementation of this line is taking place in the particular conditions related to the coronavirus pandemic. Prior to receiving AFD’s new grant, an advance payment of MAD 336 million (over 31 million euros) was made on this line of credit in order to facilitate access to financing for very small enterprises (VSEs) and small and medium-sized enterprises (SMEs).
“It is important to show our full confidence in the Moroccan banking sector in order to provide support to economic operators in the agricultural sector during this period of great uncertainty. Apart from the emergency and short-term issues, our partnership is resolutely focused on long-term issues, i.e. the development of a high-performance, socially responsible agricultural economy that is resilient to climate change,” said Mihoub Mezouaghi, Director of AFD’s operations in Morocco.