- Infrastructure solutions provider, Africa Finance Corporation has signed a MoU with Morocco’s Ministry of Economy and Finance to fund project development.
- Deal targets in renewable energy, transport, natural resources, heavy industries, and telecommunications.
- The Agreement follows Morocco’s official entry as a member of the AFC in 2021. The agreement will facilitate Morocco’s domestic market competitiveness and the export capacity of her businesses.
Infrastructure solutions lender, Africa Finance Corporation has signed an agreement with Morocco to provide project development, structuring, and financing for key projects in renewable energy, transport, natural resources, heavy industries, and telecommunications sectors.
The deal follows Morocco’s official entry as a member of the AFC in 2021. AFC will provide innovative financing and pragmatic solutions to enhance the infrastructure and industrial base in Morocco. Consequently, such solutions will facilitate domestic market competitiveness and the export capacity of Moroccan businesses.
Morocco sees opportunities in Sub-Saharan Africa
In the last 10 years, Morocco has adopted a proactive policy towards sub-Saharan Africa opportunities. Indeed, Morocco has rejoined the African Union to position itself as a prime participant and leader in Africa’s economic development.
Moroccan Minister of Economy and Finance Nadia Fettah says the partnership with AFC is yet another critical step in realizing that vision of making Africa a vibrant economic region where intra-Africa trade and job creation become synonymous with political stability and economic prosperity.
“This marks a major step in the cooperation between Morocco and the AFC and confirms the continuous commitment of the Kingdom of Morocco to Africa’s development, in line with the vision of His Majesty the King, in promoting South-South cooperation,” Fettah added.
AFC is already in high-level discussions with several government entities in Morocco. These include the Ministry of Transportation and Logistics, the National Railway Operator, the Airport Authority, and the Ministry of Energy Transition and Sustainable Development.
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Among the pipeline of projects under discussion is the revamp and upgrade of significant railway infrastructure. The upgrade will improve passenger and cargo mobility between rural towns and the capital city. It will also ease road congestion and enable cooperation under Morocco’s renewable strategy.
“This collaboration underscores our commitment to advance the economic growth and industrialization of Africa alongside the Kingdom of Morocco’s own domestic development and regional growth priorities. We look forward to partnering with key public and private sector stakeholders to invest in sustainable infrastructure projects that drive rapid progress in manufacturing, import substitution, and beneficiation of Africa’s abundant natural resources,” said Samaila Zubairu, President and CEO of AFC.
AFC investments in Africa hit $11.5 billion
AFC’s investment footprint spans 36 countries across Africa. The investment accounts for about $11.5 billion in projects that blend positive social and environmental impact with superior risk-adjusted returns.
The Corporation’s A3 investment-grade rating from Moody’s enables beneficial access to global capital markets. It underscores the confidence of Africa’s decision-makers in the AFC’s role as a critical institution for sustainable economic development.
AFC recorded an outstanding financial performance in 2022 with total assets growing 23 percent to $10.5 billion. This was a 36 per cent increase in profit to $285.9 million. Member countries reached 40 in total.