The World Bank will be securing international financing for Morocco through the use of guarantees, according to Hiroshi Matano, Executive Vice President of the Multilateral Investment Guarantee Agency (MIGA). The guarantees will help Moroccan companies and public institutions diversify their sources of funding by tapping into private capital.
This aligns with the country’s goals under its New Development Model (2021-2035), focusing on sustainable development, in key sectors including green energy, transportation, and human capital improvement.
MIGA has already played an important role in backing significant Moroccan projects. Nearly €810 million in guarantees for projects like the Mohammed VI Polytechnic University. The agency is now looking to support other infrastructure projects, such as the planned expansion of the Tanger Med port complex.
“The guarantees can help Moroccan borrowers companies, public institutions, and non-sovereign risk counterparties, diversify their financing sources with private capital,” said Matano.
This move is expected to help Morocco, as the country is looking to stand as a global trade and logistics center, while also transitioning to greener energy sources.
During his visit to Morocco, Matano engaged in discussions with Moroccan government officials and business leaders. Talks that were centered on MIGA’s commitment to helping Morocco’s development goals, particularly in high-productivity sectors such as education, healthcare, renewable energy, water management, and transportation.
MIGA unveiled on July 1, 2024, a new guarantee platform to promote both inward and outbound investments, with a focus on African markets. With this project, MIGA is demonstrating its commitment to raising private financing to assist developing nations like Morocco.
The agency is committed to growing its influence, as evidenced by its ambitious goals to raise its yearly guarantee issuance to $20 billion by 2030 “Our goal is to further our impact in client countries, including Morocco, by increasing the World Bank Group’s annual issuance of guarantees,” said Matano.
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