The IMF notes that the measures introduced under the RSF program will help Morocco better manage its limited water resources, further open up the electricity sector, and address the climate risks threatening the country's fiscal stability and financial system.

The International Monetary Fund (IMF) approved yesterday a $496 million loan for Morocco. This loan is part of a larger $1.3 billion program designed to boost the country’s climate resilience and support its transition to a sustainable economy. The funds will be released over 18 months through the IMF’s Resilience and Sustainability Facility (RSF).

 “The RSF arrangement concluded with the implementation of six of the seven measures scheduled for the third and final review,” the IMF said, praising Morocco's progress in implementing reforms after the third review of the RSF program.

Kenji Okamura, IMF Deputy Managing Director, highlighted that these measures will help Morocco better manage its limited water resources, liberalize the electricity sector, and address climate-related risks that threaten the country’s fiscal and financial stability. However, the introduction of a planned carbon tax has been delayed as the government continues to assess its impact and consult with public and private stakeholders.

Morocco remains highly vulnerable to climate change, particularly due to recurring droughts and other environmental challenges. The 2024 Al Haouz earthquake caused extensive damage to infrastructure like roads, schools, and hospitals. The World Bank has also noted that Morocco faces “structural water stress,” which is affecting agricultural yields.

Despite these challenges, Morocco’s economy has shown resilience. In 2024, GDP growth was 3.2%, down slightly from 3.4% in 2023, supported by strong domestic demand. The IMF is optimistic about Morocco’s future, forecasting 3.7% growth in the coming years, driven by new infrastructure projects and ongoing reforms.