The Green Climate Fund (GCF), the European Union (EU) and the European Bank for Reconstruction and Development (EBRD) are providing loans to two Moroccan commercial banks. These structures will then provide sub-loans to citizens, businesses, and small and medium-sized enterprises (SMEs) to support their climate change adaptation projects.
The loans, totaling €50 million, are being provided by the Green Climate Fund (GCF), the European Union (EU), and the European Bank for Reconstruction and Development (EBRD) to Crédit Immobilier et Hôtelier (CIH Bank) and Bank of Africa, a subsidiary of the Moroccan group BMCE. The two Moroccan commercial banks will use the available funds to provide sub-loans to households, businesses, and SMEs (small and medium-sized enterprises) to support their climate change adaptation initiatives.
In this financing, €37.5 million is provided by the EU through the EBRD and €12.5 million by the GCF. The financing will mainly support companies that implement climate change mitigation and adaptation technologies. The loans are provided under the Green Economy Finance Facility (GEFF). In partnership with the GCF, this EBRD facility supports companies and owners wishing to invest in green technologies. The GEFF program is implemented through a network of more than 140 local financial institutions in 26 countries, supported by more than €4 billion in EBRD funding.
In Morocco, the new GEFF engagement “will build on the successful cooperation in the implementation of the Moroccan Sustainable Energy Financing Facility (MorSEFF) program. A comprehensive package of technical capacity, complemented by investment incentives, both funded by the EU, will support Bank of Africa and CIH Bank in the deployment of the program,” explains the EBRD.
In 2019, Bank of Africa has already secured a €5 million loan from the EU via the EBRD, under the GEFF, to support private sector investments in the green economy, through energy efficiency, or water supply.
Jean Marie Takouleu