World Bank Approves $500M for Morocco’s Jobs and Green Growth Development Policy Loan

In a major boost to Morocco's economic transformation agenda, the World Bank's Board of Directors has approved a $500 million financing package under the First Morocco Jobs and Green Growth Development Policy Loan, marking the launch of a multi-phase reform program aimed at tackling unemployment, strengthening small businesses, and accelerating the country's green transition.

The operation—the first in a planned series of three—signals strong international backing for Morocco's ambitious Jobs Roadmap, which seeks to create a more inclusive, resilient, and sustainable economy amid global economic uncertainty.

Tackling Unemployment and Unlocking Opportunities

Morocco continues to face persistent labour market challenges, particularly among youth and women. Youth unemployment remains elevated, while female labour force participation has declined in recent years—limiting the country's economic potential.

The World Bank-backed program aims to address these structural gaps through targeted reforms and investments:

• Over 330,000 job seekers are expected to benefit from expanded active labour market programs by 2029

• Improved alignment between education, vocational training, and private sector needs

• Expansion of licensed childcare services, adding 40,000 new places

• Creation of 1,200 direct jobs for women in the childcare sector

By addressing barriers such as limited childcare access and skills mismatches, the initiative seeks to unlock workforce participation and productivity at scale.

Empowering SMEs and Driving Business Growth

A central pillar of the reform program is strengthening Morocco's private sector—particularly small and medium-sized enterprises (SMEs), which are critical engines of job creation but often face financing and regulatory constraints.

Key measures include:

• Modernizing insolvency frameworks to help businesses recover from financial distress

• Expanding credit guarantee mechanisms to improve SME access to finance

• Streamlining investment procedures through Regional Investment Centers

These reforms aim to foster the emergence of high-growth firms, often seen as the missing link in Morocco's economic ecosystem.

Ahmadou Moustapha Ndiaye, World Bank Division Director for the Maghreb and Malta, emphasized:

"These reforms address one of the most persistent barriers to job creation in Morocco: the slow emergence of high-growth enterprises… helping businesses grow, navigate financial difficulties, and attract sustained investment."

Accelerating the Green Transition

The financing package also places strong emphasis on clean energy and sustainability, aligning with Morocco's long-standing leadership in renewable energy in Africa.

The program will:

• Remove barriers to private investment in renewable energy

• Support the growth of energy efficiency services

• Strengthen resilience against external energy shocks

Morocco, already a regional leader in solar and wind power, aims to deepen private sector participation in the energy transition—an area historically constrained by regulatory and market barriers.

Boosting Pharmaceutical Exports and Industrial Growth

In a strategic move to diversify exports and enhance industrial competitiveness, the program also supports the pharmaceutical sector, positioning it as a key growth driver.

Morocco aims to:

• Expand its presence in international pharmaceutical markets

• Increase exports by nearly sevenfold by 2029

This focus reflects broader efforts to integrate Morocco into global value chains while strengthening domestic manufacturing capacity.

Integrated Approach to Growth and Resilience

The World Bank emphasized that the program is designed as an integrated reform package, recognizing the interconnected nature of employment, private sector development, and environmental sustainability.

The initiative addresses:

• Structural constraints limiting private investment

• Labor market inefficiencies affecting job creation

• Vulnerabilities in the energy sector

By combining policy reforms with financial support, the program aims to deliver tangible, on-the-ground results while maintaining macroeconomic stability.

A Long-Term Transformation Agenda

Structured as a programmatic series, the $500 million operation is expected to be followed by additional phases that will deepen reforms and expand impact.

As Morocco advances its development agenda, the World Bank's support is expected to:

• Strengthen the investment climate

• Promote inclusive growth

• Accelerate the transition to a green economy

With global economic pressures mounting, the initiative represents a timely effort to position Morocco for sustainable, job-rich growth in the coming decade.