The EBRD organized on March 29 in Casablanca the launch ceremony of its GEFF II financing line which aims to support private green investments via partner banks. Photo Seddik
The European Bank for Reconstruction and Development (EBRD) is negotiating with the BCP group for a loan of 25 million euros as part of its “GEFF Morocco II” green financing line. With this loan, GEFF Morocco II financing should reach 150 million euros, out of an overall envelope of 163 million initially announced by the EBRD. Already 125 million euros have been signed with 5 other Moroccan banks, ie 25 million euros each: Bank Of Africa, BMCI, Société Générale Maroc, Crédit du Maroc and CIH Bank.
The partnership between the European Bank for Reconstruction and Development (EBRD) and the Moroccan financial sector is strengthening in favor of the green transition. According to an official source, the EBRD is negotiating with the BCP group a loan of 25 million euros as part of its new green financing line: Green Economy Financing Facility (GEFF Morocco II). With this new loan, GEFF Morocco II financing should reach 150 million euros, out of an overall envelope of 163 million initially announced by the EBRD for the program. Indeed, for the GEFF II program, which is supported by the European Union and the Green Climate Fund, the EBRD has already signed loans for a total of 125 million euros with 5 other Moroccan banks, i.e. 25 million euros each: Bank Of Africa, BMCI, Société Générale Maroc, Crédit du Maroc and CIH Bank. According to our source, the new loan with the BCP is in the final phase of negotiations and could be signed on the occasion of the 31st session of the EBRD Annual Meeting which will take place from May 10 to 12, 2022 in Marrakech.
In the meantime, the EBRD organized on March 29 in Casablanca the launch ceremony of its GEFF II financing line which aims to support green investments made by private companies that are clients of credit institutions. The event was attended by representatives of the government, CGEM, GPBM, Bank Al-Maghrib, the European Union as well as Moroccan partner banks, in addition to Heike Harmgart, Managing Director of the EBRD in the SEMED region and Antoine Sallé de Chou, Director of the EBRD in Morocco.
According to the latter, eligible projects relate to energy efficiency, renewable energy, green buildings, water saving, sustainable land management, material and resource efficiency as well as the circular economy. The GEFF program is based on a one-stop-shop approach: a credit of up to 5 million euros per investment project, a grant and free technical assistance. Indeed, thanks to EU support, successfully implemented and verified investment projects benefit from a grant of 10% of the eligible funding. The EU has mobilized 18 million euros, or more than 180 million DH under the GEFF program.
Clients eligible for the GEFF are private companies (mostly owned by private shareholders) under Moroccan law operating in Morocco. According to Antoine Sallé de Chou, since 2015, the EBRD has mobilized 700 million euros of green financing in Morocco, through direct contracts but also through programs such as the Green Value Chain (GVC) and MorSEFF (financing of durable energy). The objective is to improve the competitiveness of VSMEs and their access to global value chains. Decarbonization is now becoming an important criterion for competitiveness and access to markets, mainly foreign ones. Recall that the EBRD is committed to making the majority of its annual investments “Green” globally by 2025. “In Morocco, we have already achieved this objective since green financing arrived, in 2021, in head of the EBRD’s activities in Morocco, representing for the first time more than half of its total investment in this country,” says Antoine Sallé de Chou.