Morocco - First Morocco Jobs and Green Growth Development Policy Loan Program

Overview & Synopsis

The development objective of First Morocco Jobs and Green Growth Development Policy Loan is to enhance labor market inclusion for youth and women, strengthen the business environment, and expand private investment in green sectors, supporting Morocco's government policy roadmap to create jobs. The operation is aligned with the Morocco FY19-25 Country Partnership Framework (CPF) and the forthcoming Morocco CPF (FY2026-FY2035), the WBG strategic focus on jobs, and corporate priorities on gender equality. It is also aligned with the WB Maximizing Finance for Development (MFD) approach, with private investment generated through the project counted towards Private Capital Enabling (PCE). Key prior actions (PAs) verified as MFD-enabled include PA5, which supports adoption of a prudential framework to expand de-risking guarantees for bank lending to SMEs, and PA7, PA8, and PA9, which support regulatory reforms to unlock private investment in distributed renewable energy (DRE) generation, energy efficiency (EE), and the pharmaceutical industry. On the PCE side, PA5 is expected to mobilize an additional US$1.1 billion in new private credit to SMEs, while PA7 will mobilize US$456.5 million in private investment associated with 2,202 megawatts of renewable capacity, with US$152 million attributed to this operation. The project has been tagged as both MFD-enabled and PCE, and is assessed as aligned with the goals of the Paris Agreement.