The European Bank for Reconstruction and Development (EBRD), with the support of the Green Climate Fund (GCF) and the European Union (EU), on Wednesday granted 13 million euros to Bank of Africa (BOA) to support Morocco’s ecological transition.
BOA and its leasing subsidiary, Maghrebail, will extend financing, of which €9.75 million will be provided by the EBRD and €3.25 million by the GCF, in the form of sub-loans to small and medium enterprises ( SMEs) and other companies to support their investments in climate change mitigation and adaptation technologies, the EBRD said in a statement.
These funds are an extension of an existing loan, provided under the Green Economy Financing Facility (GEFF), signed by the EBRD and BOA in September 2021, to meet a sustained demand for green financing, specifies the London-based institution. The new financing will include a package of technical cooperation measures, financed by the EBRD, the EU and the GCF to assist in the preparation, implementation and overall monitoring of the project, adds the Bank, noting that a consultant The project will also continue to provide capacity building and awareness sessions on climate change mitigation and adaptation technologies, as well as optimal technology choices for sub-borrowers, reflecting the latest market developments.
The EU will provide a grant of 1.43 million euros, corresponding to an average incentive of 10% for Moroccan companies, in order to stimulate investments in technologies for mitigation and adaptation to climate change, details, by elsewhere, the EBRD. In order to “strengthen equal opportunities and close gender gaps”, the line of credit will also be used to promote women’s access to climate finance, as well as train more BOA branch staff in climate change. gender-responsive green finance, stresses the Bank. BOA is the third largest bank in Morocco.
The group, present in 32 countries, particularly in sub-Saharan Africa, Europe, Asia and North America, is listed on the Casablanca Stock Exchange. It is one of the main partners of the EBRD in terms of green financing, with 113 million euros in green loans granted within the framework of their cooperation.
Morocco is a founding member of the EBRD and became a country of operations in 2012. To date, the EBRD has invested more than €3.8 billion in the country through 90 projects.