By Mbafan Ade (BUSINESS CORRESPONDENT) –
Morocco’s Ministry of Economy and Finance has signed a Memorandum of Understanding (MoU) with the Africa Finance Corporation (AFC), to provide project development, structuring, and financing solutions for projects in key strategic sectors of renewable energy, transport, natural resources, heavy industries, and telecommunications.
According to release made available to FRONTVIEW AFRICA, the MoU is aimed at strengthening the partnership after Morocco officially became a member of the AFC in 2021.
AFC, the continent’s leading infrastructure solutions provider, is expected to provide innovative financing and pragmatic solutions to enhance the infrastructure and industrial base in Morocco, necessary to facilitate domestic market competitiveness and export capacity of Moroccan businesses.
Over the past decade, Morocco has adopted a proactive policy towards sub-Saharan Africa opportunities and has re -joined the African Union to position itself as a prime participant and leader in Africa’s economic development.
This partnership with AFC is yet another critical step in realizing that vision of making Africa a vibrant economic region where intra-Africa trade and job creation becomes synonymous with political stability and economic prosperity.
Commenting on the development, Moroccan Minister of Economy and Finance, His Excellency Nadia Fettah, said: “This marks a major step in the cooperation between Morocco and the AFC and confirms the continuous commitment of the Kingdom of Morocco to Africa’s development, in line with the vision of His Majesty the King, in promoting South-South cooperation.”
AFC is already in high-level discussions with several government entities in Morocco, including the Ministry of Transportation & Logistics, the National Railway Operator, the Airport Authority, and the Ministry of Energy Transition & Sustainable Development.
Among pipeline projects under discussion is the revamp and upgrade of significant railway infrastructure to improve passenger and cargo mobility between rural towns and the capital city and ease road congestion, as well as cooperation under Morocco’s renewable strategy.
Samaila Zubairu, President and CEO of AFC, said: “This collaboration underscores our commitment to advance the economic growth and industrialization of Africa alongside the Kingdom of Morocco’s own domestic development and regional growth priorities. We look forward to partnering with key public and private sector stakeholders to invest in sustainable infrastructure projects that drive rapid progress in manufacturing, import substitution, and beneficiation of Africa’s abundant natural resources.”
AFC’s investment footprint spans 36 countries across Africa, investing US$11.5 billion in projects that blend positive social and environmental impact with superior risk-adjusted returns.
The Corporation’s A3 investment-grade rating from Moody’s enables beneficial access to global capital markets. It underscores the confidence of Africa’s decision-makers in AFC’s role as a critical institution for sustainable economic development.
AFC recently recorded an outstanding financial performance in 2022 with total assets growing 23% to US$10.5 billion, a 36% increase in profit to US$285.9 million and member countries reaching 40 in total.