The European Bank for Reconstruction and Development (EBRD) has decided to grant an additional loan of €5 million to BMCE Bank of Africa. The money released under the EBRD's Green Economy Financing Facilities programme will be used to support the green economy in Morocco.
BMCE Bank of Africa has obtained a facility (credit line) of €5 million from the European Bank for Reconstruction and Development (EBRD). The credit consists of a contribution of €1.25 million from the Green Climate Fund (GCCF) and €3.75 million directly from the EBRD. The money is being released under the EBRD’s Green Economy Financing Facilities (GEFF) programme and will be used to support private sector investment in Morocco’s green economy. The loan is being released under a €10 million credit agreement signed between the two parties in March 2019, which constitutes the second instalment of the loan.
The financing will support the Morocco Sustainable Energy Financing Facitily (MorSEFF) programme, which was launched in Morocco in 2015. The BMCE Bank of Africa is a partner bank of the MorsSEFF initiative, a programme that has received support from the European Union and four donors, led by the EBRD.
Under the terms of the agreement signed between the two parties, the Moroccan bank will receive technical support from the EBRD. The cost of this assistance is estimated at 150,000 euros. In addition, the Moroccan side will have to offer local companies financing and subsidies, as well as technical expertise to enable them to ensure the viability of the projects they will carry out.
The EBRD has already invested nearly €2 billion in 50 projects in Morocco. It has also supported more than 550 local SMEs through advisory services. The bank has initiated the GEFF programme in several countries to support green investments in the private sector through local banks.