On September 28, 2023, the International Monetary Fund's executive board approved an arrangement with Morocco that will support its movement to a more sustainable and greener economy. The arrangement amounted to SDR 1 billion (about US$ 1.32 billion, equivalent to 112 percent of quota).
According to the International Monetary Fund (IMF), the arrangement, known as the Resilience and Sustainability Facility (RSF), will assist Morocco in transitioning to a greener economy and strengthening its preparedness and resilience against natural disasters, including those caused by climate change.
Morocco, a country heavily reliant on agriculture, fishery, and tourism, is facing numerous climate change vulnerabilities. The country's economy has been growing steadily at a GDP rate of 4-5% per year. However, it is threatened by intense water shortages from 2020-2040, and various resources are under pressure due to climate change.
The RSF arrangement with the IMF aims to address these challenges by increasing Morocco's resilience against climate change and taking advantage of opportunities for decarbonization. It will also help Moroccan authorities be better prepared for natural disasters and climate change-related events. Additionally, the funding will support the development of a sustainable economy in the country.
The arrangement is expected to last for 18 months, providing Morocco with financial assistance and expertise to tackle the effects of climate change and promote sustainable development.
Morocco's vulnerability to climate change has been recognized by the United Nations Intergovernmental Panel on Climate Change (IPCC). The country has experienced drought, rising average temperatures, heatwaves, changing rainfall patterns, extreme rainfall, floods, and sea-level rise. Since the 1960s, Morocco has seen an average temperature increase of about 1 degree, and by 2050, it is projected to rise to about 1.5 degrees.
With the approval of this arrangement, Morocco has taken a significant step towards a more sustainable and resilient future, with the support of the IMF's Resilience and Sustainability Facility.