On November 11, 2024, the International Monetary Fund (IMF) Executive Board concluded its second review under the Resilience and Sustainability Facility (RSF) arrangement for Morocco. This completion allows Morocco to draw SDR 312.5 million, equivalent to approximately US$415 million. The total disbursement under this program now stands at SDR 562.5 million, around USD 747 million.
Despite facing another drought affecting agricultural output in 2024, Morocco's non-agricultural sectors have shown resilience with domestic demand strengthening. However, unemployment remains high due to job losses in agriculture. Inflationary pressures have decreased, prompting Bank Al-Maghrib to reduce the policy rate in June 2024. The fiscal deficit is on track with increased current spending being balanced by higher-than-expected revenues from tourism, exports of goods, and remittances.
Under the RSF arrangement, Morocco is progressing in enhancing resilience against climate change and exploring decarbonization opportunities. Investments in water infrastructure are aimed at addressing water scarcity and require support through demand management reforms. Liberalizing electricity markets is essential for boosting private sector involvement in renewable energies which will help achieve Nationally Determined Contributions targets while reducing reliance on imported fuels.
Deputy Managing Director and Acting Chair of the IMF Executive Board, Mr. Kenji Okamura stated: “The Moroccan authorities continue to make steady progress on strengthening Morocco’s resilience to climate change, underpinned by very strong fundamentals and policy frameworks and a sustained track record of effective policy implementation." He emphasized that performance under the RSF has been robust and noted Morocco's commitment to a green transition despite its vulnerability to climate risks.
Mr. Okamura further commented on decarbonization efforts: "The focus on decarbonization, while limiting the impact on the most vulnerable, is welcome...The planned replacement measure will provide an important price signal consistent with the authorities’ decarbonization objectives."
He also highlighted that implementing remaining measures under the RSF arrangement will be critical for supporting Morocco's green transition efforts such as liberalizing electricity sectors and greening tax systems.
Morocco's Climate Finance Development Strategy 2030 was acknowledged as pivotal for mobilizing private climate finance.