Morocco receives 496 million dollars from the IMF to resist the onslaught of climate change
Morocco has received 496 million dollars from the International Monetary Fund (IMF) to improve its resilience to the impact of climate change.
The IMF Executive Board approved this tranche of money for Morocco as the third instalment of the Resilience and Sustainability Facility.
This new monetary disbursement brings the figure received by the Moroccan kingdom to 1.24 billion dollars in this area.
The Moroccan economy continues to show considerable resilience despite the negative effects of climate change, mainly the drought that has plagued the country in recent years, somewhat alleviated recently by some heavy rainfall, which took place mainly in the north of the North African country.
Currently, the outlook for the Moroccan economy is good. In fact, the IMF forecasts accelerated growth in the medium term, driven by greater investment and continuous structural reforms, promoted by the Moroccan State following the guidelines of King Mohammed VI, who, since his accession to the throne in 1999, has had the clear objective of modernising the country in all aspects and promoting significant economic, investment and industrial development.
The IMF's deputy managing director and acting chairman, Kenji Okamura, noted that the Moroccan economy ‘has continued to show resilience in the face of negative shocks, demonstrating the strength of the country's policies and economic frameworks’.
The Moroccan economy grew by 3.2% in 2024, a year of severe drought. This represents a fall compared to the 3.4% growth recorded in 2023. An economic boom reinforced by the significant domestic demand generated in the North African country.
Given this, Gross Domestic Product (GDP) is expected to grow by 3.7% in the coming years thanks to the structural reforms being implemented by the Moroccan state and investment in various sectors, such as infrastructure. These initiatives seek to reinforce economic growth and also promote employment.
Morocco is promoting a great deal of investment in all kinds of infrastructure, which is having a positive effect on the national economy. It is also worth mentioning the efforts being made in relation to water facilities and actions and the proper management of water, with a view to mitigating the effects of the drought suffered. As can be seen in this case with the construction of desalination plants in the country, such as those in Agadir and Al Hoceima and the one planned for Casablanca, which allow for an increase in water resources by treating seawater and converting it into drinking water, or the construction and improvement of water dams.
The work of the IMF
The IMF is a United Nations (UN) international financial organisation based in Washington, USA, dedicated to monitoring and improving the economy of its member states through various funding programmes.
The organisation's stated objectives are to promote international monetary cooperation, develop international trade, reduce unemployment, achieve reasonable exchange rates, achieve economic growth and reasonably grant resources to member countries in economic difficulties or facing significant national problems. The IMF is financed through quotas paid by its members and through loans, which are mostly financed with these quotas from member countries.