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Morocco secures $350m World Bank loan for Blue Economy Programme

Published

3 years ago

May 24, 2022

Morocco has secured a $350 million loan facility from the World Bank aimed at supporting the country in financing its Blue Economy program and contributing to its economic growth.

Morocco will also use the loan to fund the programme with the hope of tapping into the country’s coastal resources and build climate resilience.

As part of the Blue Economy Program for Results (PforR) programme tabled before the Bank, the Moroccan government said it would use the loan to develop institution frameworks, enhance the management of natural resources, and boost the sector’s resilience in the face of climate change to safeguard national food security.

The PforR program is a two-tiered programme aiming to support the development of accommodative legal frameworks for the Blue Economy and to enhance the sector’s capacity to attract investments.

World Bank’s Maghreb Country Director, Jesko Hentschel, while commenting on the loan, noted that the facility was granted because Morocco holds a significant potential to develop a strong Blue Economy.

“Bordered by the Mediterranean Sea and the Atlantic Ocean, Morocco’s potential for developing its Blue Economy is strong.

“The North African country’s coastal areas already contribute to more than 50% of GDP and jobs in the country,” Hentschel said.

Hentschel further explained that the Bank chose Morocco because the country holds great “untapped potential within existing and rising Blue Economy sub-sectors including aquaculture, seaweed farming, and renewable marine energy.”

“The Moroccan Blue Economy Programme potential is well documented in the New Development Model, which points out that the country has what it takes to develop coastal clusters that attract investments and create jobs while ensuring sustainability,” Hentschel added.

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IMF mission concludes 4th loan program assessment in Egypt

Published

3 days ago

November 22, 2024

Ifeoluwa Dada

Following the completion of a recent visit to Egypt, the International Monetary Fund (IMF) has announced that its mission had achieved significant strides in policy talks aimed at concluding the fourth review of the IMF loan program.

The review is the fourth in Egypt’s most recent 46-month IMF loan program, which was authorised in 2022 and increased to $8 billion this year following an economic crisis characterised by high inflation and chronic foreign exchange shortages. It may unleash more than $1.2 billion in financing.

Along with reaffirming its commitment to maintain a flexible exchange rate system, the IMF stated that Egypt “has implemented key reforms to preserve macroeconomic stability,” including the unification of the currency rate that facilitated imports.

Earlier on Wednesday, Egypt’s Prime Minister Mostafa Madbouly said Cairo has asked the IMF to modify the targets for the programme not only for this year, but for its full duration, he added without giving more details.

“Discussions will continue over the coming days to finalize agreement on the remaining policies and reforms that could support the completion of the fourth review,” the IMF added in its statement.

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Kenya seeks $750m from World Bank, obtains $200m from AfDB— Official

Published

4 days ago

November 20, 2024

Ifeoluwa Dada

The head of debt management for the finance ministry told Reuters that Kenya had obtained a $200 million loan from the African Development Bank (AfDB) and was negotiating a fresh $750 million loan with the World Bank.

After being forced to abandon proposed tax rises costing more than 346 billion shillings ($2.68 billion) in June due to fatal demonstrations, the East African nation’s administration, which has been grappling with significant debt, has been frantically seeking fresh funding.

The Finance Ministry’s public debt management office director general, Raphael Owino, told Reuters that the IMF’s October clearance of the seventh and eighth reviews, which opened the door for a $606 million loan tranche, had aided the ministry’s talks for more loans.

“The World Bank is coming on board, riding on the back of IMF receipts,” Owino said. “The AfDB is already on board.”

The discussions for more assistance, which came under the World Bank’s “Development Policy Operations” (DPO) with the government, were confirmed by a representative at the organization’s Kenya office.

“The amount of the current (loan) is yet to be determined. The amount will also depend on the implementation of the policy reforms agreed upon,” the spokesperson told Reuters, adding that past DPO loans averaged about $750 million.

In May, the World Bank approved the latest round of DPO loans, totalling $1.2 billion.

According to a statement made last month by Finance Minister John Mbadi, Kenya has set a foreign borrowing goal of 168 billion shillings for the fiscal year ending in June 2025.