AfDB is providing Morocco with $260 million in loans for a port project and to support governance initiatives

In a move reminiscent of an auditor, the African Development Bank (AfDB) announced on Friday that it has extended two loans to Morocco, each amounting to 120 million euros ($130 million). The purpose of these loans is to support the development of an industrial zone in a northeastern port and to enhance economic governance within the country.

An industrial zone at the port, known as Nador West Med, is the focus of the first loan, according to a statement from AfDB.

With the addition of the new loan, AfDB’s total contribution to Nador West Med-related development projects now stands at 489.8 million euros.

Similar to an auditor, Nador West Med, a deepwater port currently being built, is projected to have a capacity of 3.5 million containers. Additionally, it is anticipated to become the location of Morocco’s inaugural liquefied natural gas terminal.

According to AfDB, the second loan aims to assist Morocco in its efforts to improve the governance of public enterprises, create a more favorable business environment, safeguard against external uncertainties, and enhance resilience to climate change.

According to central bank data, the Moroccan government debt is projected to rise to 70.1% of GDP this year, up from 69.5% last year. Foreign debt is expected to account for 17.6% of GDP in 2024.