IMF Grants Morocco $1.3 Billion towards Resilient, Green City Projects After Earthquake

By Faridat Salifu

The International Monetary Fund (IMF) has announced a $1.3 billion grant under its Resilience and Sustainability Facility (RSF), to Morocco in order to bolster its preparedness for natural disasters and promote sustainable development in several cities of the country.

The financial support comes on the heels of a devastating magnitude 7 earthquake that claimed about 2,900 lives in the Marrakech region, recently.

The earthquake, which struck the Al Haouz region south of Marrakech, it was gathered, has raised critical questions about how Moroccan cities can adapt to geological and meteorological events.

“While Morocco has displayed resilience in its relief efforts, the financial demands for swift and eco-friendly reconstruction are substantial.

“The IMF is extending $1.3 billion to Morocco under its Resilience and Sustainability Facility (RSF), aligning with one of its core missions to support countries’ growth. These funds will be allocated to implement green initiatives in cities such as Marrakech, Rabat, and Casablanca.

“The financing granted corresponds to one billion Special Drawing Rights (SDRs), specific reserve assets backed by five currencies, including the US dollar and the euro. It should enable Moroccans to seize opportunities to decarbonize all sectors of the economy, while at the same time addressing climate vulnerability”, Head of the IMF, Kristalina Georgieva, was quoted as saying.

Reports say Moroccan authorities plan to utilize the funds for the construction of new infrastructure, roads, and buildings that prioritize environmental sustainability and the use of sustainable materials.

Official estimates suggest that the initiative aims to provide housing for Marrakech residents who lost a minimum of 50,000 homes due to the tremors on September 8, 2023.

Despite the challenging circumstances, Morocco is set to host the Annual Meetings of the International Monetary Fund (IMF) and the World Bank from October 9 to 15.

The event, expected to gather central bank governors, finance and development ministers, private sector leaders, and academics will discuss new reforms and technologies geared towards the global ecological transition in Marrakech.