Morocco and Africa Finance Corporation Collaborate to Drive Vital Financial Support for Local Institutions
Africa Finance Corporation, the continent’s leading infrastructure solutions provider, has signed an agreement with Morocco’s Ministry of Economy and Finance to provide project development, structuring, and financing solutions for projects in key strategic sectors such as renewable energy, transportation, natural resources, heavy industries, and telecommunications.
The MOU cements the partnership after Morocco officially joins the AFC in 2021. AFC will provide innovative financing and pragmatic solutions to improve Morocco’s infrastructure and industrial base, which will facilitate Moroccan businesses’ domestic market competitiveness and export capacity.
Over the last decade, Morocco has pursued a proactive approach to opportunities in Sub-Saharan Africa, re-joining the African Union in order to position itself as a key participant and leader in Africa’s economic development. This collaboration with AFC is another critical step toward realizing the vision of Africa becoming a vibrant economic region where intra-Africa trade and job creation are synonymous with political stability and economic prosperity.
Moroccan Minister of Economy and Finance, H.E. Nadia Fettah, stated: “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.”
AFC is already in high-level talks with several Moroccan government entities, including the Ministry of Transportation and Logistics, the National Railway Operator, the Airport Authority, and the Ministry of Energy Transition and Sustainable Development. Among the pipeline projects under consideration are the revamp and upgrade of significant railway infrastructure to improve passenger and cargo mobility between rural towns and the capital city and ease road congestion, as well as collaboration under Morocco’s renewable strategy.
Samaila Zubairu, President and CEO of AFC, stated: “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.”
AFC’s investment footprint spans 36 African countries, with US$11.5 billion invested in projects that combine positive social and environmental impact with superior risk-adjusted returns. Moody’s A3 investment-grade rating provides the Corporation with advantageous access to global capital markets. It demonstrates African decision-makers’ faith in the AFC’s role as a critical institution for long-term economic development. AFC recently reported an outstanding financial performance in 2022, with total assets increasing by 23% to US$10.5 billion, profit increasing by 36% to US$285.9 million, and a total of 40 member countries.