The World Bank’s Board of Directors approved a $400 million Morocco Climate and Risk Financing Program aimed at strengthening Morocco’s financial resilience to climate, disaster and cyber risks while helping to unlock private capital for the country’s climate infrastructure development.
According to the World Bank, the program will develop catastrophe and cyber insurance instruments to expand risk transfer capabilities; strengthen institutional frameworks; strengthen digital payments infrastructure to accelerate post-shock financial flows; and build the capacity of financial regulators to oversee climate and cyber risks affecting banks and insurance companies.
“Together, these measures will protect households, businesses and the financial sector from increasingly threatening risks,” the World Bank explained.
To promote investment in climate infrastructure, the plan will establish a project readiness fund to help establish a range of commercially viable projects across renewable energy, energy efficiency, sustainable transport and water infrastructure.
It also aims to reduce private investment risks and mobilize private capital at scale to build climate-related infrastructure through a blend of financial structures and capital market instruments.
The World Bank continued: “Over the next five years, the plan aims to mobilize up to $400 million in private capital, secure $1 billion in pre-arranged disaster financing, and expand cyber risk coverage to at least 20 financial entities, while helping to bring a new generation of climate infrastructure projects to market.
“Providing long-term capital for climate action will establish a pipeline of climate-related infrastructure projects with the potential for private sector participation, establish institutional and financing structures to prepare, and design risk reduction tools to attract private capital.”
The World Bank’s Board of Directors also approved a second initiative, the Morocco Digital Transformation Acceleration Plan worth $250 million.
The World Bank said this will provide catalytic financing to support the national Digital Morocco 2030 strategy.
The World Bank added: “It will accelerate the deployment and adoption of user-centric public digital services for citizens and businesses, support governments’ transition to cloud systems, strengthen financing and capacity building for startup ecosystems, advance AI innovation, support the digital transformation of micro, small and medium-sized enterprises, create jobs in the offshore sector, and expand the digital talent pool.”
Ahmadou Moustapha Ndiaye, Director of the World Bank’s Maghreb and Malta Division, said: “These two new programs address key pillars of Morocco’s transformation priorities: a digitally empowered economy, a vibrant innovation ecosystem, and a financially resilient country with the capacity to manage climate, disaster and cyber risks in a rapidly changing world.
“Together, these projects will support Morocco’s comprehensive architecture for the next decade – mobilizing private capital, creating jobs for youth and women, and advancing the country’s climate commitments.”
