EBRD, GCF, and EU Provide EUR70 Million Loan to Bank of Africa for Green Finance in Morocco

Strategic Insights -

The European Bank for Reconstruction and Development (EBRD), the Green Climate Fund (GCF), the European Union (EU), and Canada through the High-Impact Partnership on Climate Action (HIPCA) have joined forces to provide a EUR70 million loan to the Bank of Africa (BOA) in Morocco. This financing package, which consists of a EUR35 million loan from the GCF and a EUR35 million co-financed loan from HIPCA, will be used to support BOA in extending on-lending to Moroccan private-sector companies, including micro, small, and medium-sized enterprises (SMEs), to invest in climate change mitigation and adaptation technologies.

Key Takeaways:

  • The EUR70 million loan will be provided through the EU-backed Morocco Decarbonisation and Climate Resilience programme (GEFF+) and will support private businesses in Morocco to invest in climate change mitigation and adaptation technologies.
  • The loan will be complemented by a comprehensive technical cooperation package worth EUR6 million, with the EU providing EUR2.38 million in investment grants and the GCF providing the other EUR3.62 million.
  • The technical cooperation package will include training for BOA branch staff in gender-responsive green finance, capacity-building, and awareness-raising sessions to promote equal opportunities and women's access to climate finance.
  • BOA is the third-largest bank in Morocco and has partnered with the EBRD in green finance, with EUR113 million in green loans extended under their cooperation.
  • The EBRD has invested EUR5.4 billion in Morocco through 117 projects since 2012.

Statistics:

  • EUR70 million: the total amount of the loan provided by the EBRD, GCF, and HIPCA to BOA in Morocco.
  • EUR35 million: the amount of loan provided by the GCF.
  • EUR35 million: the amount of co-financed loan provided by HIPCA.
  • EUR6 million: the total value of the technical cooperation package.
  • EUR2.38 million: the amount of investment grants provided by the EU.
  • EUR3.62 million: the amount provided by the GCF for the technical cooperation package.
  • EUR113 million: the total value of green loans extended by the EBRD to BOA under their cooperation.
  • EUR5.4 billion: the total amount invested by the EBRD in Morocco through 117 projects since 2012.
  • 117: the number of projects invested in by the EBRD in Morocco since 2012.

Sources:

  • "EBRD, GCF and Canada through HIPCA lend EUR70 million to Bank of Africa in Morocco under GEFF plus programme". European Bank for Reconstruction and Development.