Al Haouz Earthquake: EBRD Mobilizes €250 Million Package to Assist Morocco’s Reconstruction Efforts

The European Bank for Reconstruction and Development (EBRD) announced, on October 25, the mobilization of a response package of up to €250 million for the period 2023-2025 to support Morocco in the post-earthquake reconstruction phase.

In a statement, the EBRD stated that the response package consists of two critical phases designed to promote sustainable recovery and inclusive regional development.

The first phase, running from 2023 to 2025, will focus on earthquake relief, livelihood preservation, and initial reconstruction, and provide loans to affected individuals and micro, small, and medium-sized enterprises (MSMEs) through partner financial and microfinance institutions.

During this phase, emphasis will be placed on the economic inclusion of women, the provision of liquidity for infrastructure and municipalities in case of need, and the provision of advisory and reconstruction grants for micro, small, and medium-sized enterprises (MSMEs).

In the second phase, the EBRD will support the government’s longer-term development and inclusion plan for the affected regions, including infrastructure projects and the expansion of economic opportunities for the affected population.

The London-based institution affirmed that the focus will be “on helping provide MSMEs with greater access to finance, supporting the revitalization and resilience of the tourism sector and agricultural value chains, improving key municipal and regional infrastructure,” in addition to promoting economic diversification and human capital development through targeted investments and advisory services to the private sector.

“This multi-faceted response will be closely coordinated with the Moroccan government and other relevant public and private sector stakeholders, and will be implemented in collaboration with other international partners and donors,” affirmed the EBRD. 

Quoted in the statement, EBRD Managing Director for the Southern and Eastern Mediterranean (SEMED) region, Heike Harmgart, stated that “the EBRD stands ready to support the affected communities and regions and help mitigate the adverse effects of the earthquake on livelihoods, human capital, and infrastructure through a tailored blend of financing, grant support, and technical assistance.”

Morocco is a founding member of the European Bank for Reconstruction and Development. The Kingdom has benefited from the Bank’s funding since 2012. So far, the EBRD has invested €4.2 billion in Morocco through 95 projects. 

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