Market Development

Morocco: EIB mobilises second tranche of €500 million for post-earthquake reconstruction with EU support

The European Investment Bank (EIB) has mobilised a second tranche of €500 million to support the reconstruction of the High Atlas regions affected by the 2023 earthquake, bringing its total commitment to €1 billion. The financing is guaranteed by the EU and targets essential infrastructure such as roads, schools, and healthcare facilities in the most affected areas, with a focus on enhanced earthquake-resistant and energy-efficient standards.

The EIB's engagement in this programme has been structured into three phases, adapting to evolving needs on the ground. The first phase focused on emergency financing, while the second phase provided transitional support until the High Atlas Development Agency (ADHA) reached full operational capacity. The current large-scale deployment phase aims to accelerate reconstruction efforts and meet the priorities defined by the Moroccan government.

The EIB's commitment to this programme reflects its long-standing partnership with Morocco, which has mobilised over €11 billion for transformative projects since 1979. The financing is accompanied by technical assistance grants and a component dedicated to gender equality and social inclusion, demonstrating the EIB's commitment to supporting sustainable development and resilient infrastructure in the region.

Why it matters

The mobilisation of €500 million by the European Investment Bank (EIB) to support post-earthquake reconstruction in Morocco highlights the critical role that international financing can play in supporting working capital in international trade. As a key partner of Team Europe, the EIB's commitment underscores the importance of collaboration between governments, private sector and civil society organisations in addressing global development challenges.

The EU bank's €1 billion programme for the High Atlas regions demonstrates how export finance structures can be leveraged to support supply chain finance and receivables programmes that promote working capital management. By financing essential infrastructure projects with high standards of seismic resistance and energy efficiency, the EIB is also supporting the long-term sustainability of trade relationships between Morocco and its European partners.

The combination of guaranteed loans and technical assistance grants in this programme reflects a nuanced approach to supporting development finance, one that prioritises both economic growth and social inclusion. As the global economy continues to evolve, international institutions like the EIB will play an increasingly important role in shaping working capital solutions that support trade and investment in emerging markets.

Key points

The European Investment Bank (EIB), the EU's bank, is mobilising a second tranche of €500 million as part of its €1 billion commitment to the reconstruction of the High Atlas regions affected by the earthquake.
This financing supports the reconstruction programme led by the Moroccan authorities, with guaranteed loans and technical assistance grants to strengthen institutional capacities and guarantee the quality of reconstructed infrastructure.
The EIB's engagement is structured in three successive phases, adapted to evolving needs on the ground, from emergency response to large-scale deployment phase.
The financed investments meet high standards of seismic resistance and energy efficiency, consistent with the EU-Morocco Green Partnership, prioritising essential infrastructure such as roads, schools, and healthcare facilities.
A component dedicated to gender equality and social inclusion is also included in the programme, supported by an action plan developed with the High Atlas Development Agency (ADHA) and sectoral ministries.
The EIB's commitment to Morocco since 1979 has mobilised over €11 billion for transformative projects contributing to the Kingdom's sustainable development, focusing on essential infrastructure and support for the private sector.

Institutional context

The European Investment Bank's engagement in international trade and development finance is guided by the EU's strategic priorities, including its Global Gateway strategy and Team Europe approach. As a multilateral development bank owned by its 27 Member States, the EIB has a unique position to support sustainable development and resilience in partner countries.

In the context of export finance structures, supply chain finance, and receivables programmes that support working capital in international trade, the EIB's experience and expertise are valuable. The bank's structured financing solutions for critical infrastructure projects, such as roads, schools, and healthcare facilities, can help mitigate risks associated with international trade and ensure more resilient and sustainable supply chains.

The EIB's partnership with the Moroccan government and other stakeholders demonstrates its commitment to supporting post-earthquake reconstruction efforts in a country that has been a partner since 1979. The bank's €1 billion commitment to the High Atlas region is a testament to its ability to mobilise significant resources for transformative projects, while also promoting gender equality and social inclusion through targeted components of the programme.

Practical considerations

Practical considerations To implement this €1 billion commitment, the EIB has structured its engagement into three successive phases, adapting to evolving needs on the ground. In the first weeks following the earthquake, emergency financing was mobilised to support critical operations such as debris removal and equipment provision for temporary accommodation. As the situation stabilised, a transitional phase ensued from December 2023, ensuring continuity between emergency response and structured reconstruction until the High Atlas Development Agency (ADHA) reached full operational capacity.

The EIB's approach is further reinforced by its partnership with Team Europe, which includes direct grants awarded to civil society organisations supporting community-led reconstruction in affected areas. This component aims to promote gender equality and social inclusion through concrete measures and monitoring indicators across education, health, and infrastructure sectors. The EIB has also demonstrated its commitment to sustainability by incorporating enhanced earthquake-resistant and energy-efficient standards into the financed investments.

As a multilateral development bank owned by 27 Member States, the EIB brings a unique level of institutional stability and long-term perspective to international partnerships and development finance. Its Global Gateway strategy aims to strengthen global value chains and promote sustainable growth, while its offices around the world provide closer engagement with local stakeholders and businesses.

Source: European Investment Bank