For the most part, the US$ 300 million in credit due to be granted to the African country will go to social investment. Another US$ 50 million will be loaned to micro, small and medium businesses.
São Paulo – Last week, the World Bank approved a US$ 300 million loan to the Morocco’s National Human Development Initiative (NHDI). The funds will be used in the second phase of the NHDI project established in 2005 to promote development among poor people in rural and urban areas. Another US$ 50 million will be made available through a line of credit for micro, small and medium businesses to develop.
The NHDI program was created to finance projects aimed at raising income among the poor, promoting access to basic services, and bringing infrastructure to poor areas. Phase two of the NHDI will cover twice the area covered in phase one, with a higher budget: US$ 2.1 billion. The phase one budget is US$ 1.7 billion.
The granting of the loan, however, is conditioned by the results the Moroccan authorities will deliver. In other words, the project will only get the funds provided that the population is actually benefited. According to the World Bank, the results on which the financing will depend include improvement in education for girls in rural areas, increased population access to water, increased number of income-generating activities, and greater participation of women and youths in NHDI governance.
The World Bank official in charge of the NHDI project, Mohamed Medouar, claimed that the granting of credit based on the program’s results will be a stimulus for including groups of more vulnerable people. “The focus on verifiable results is in keeping with a commitment to open, transparent governance,” he said.
Financing to enterprises
According to the World Bank, the US$ 50 million line of credit to micro, small and medium businesses aims to allow companies currently not included in government programs to be able to obtain financing for their projects. This includes women entrepreneurs and start-up companies. The micro, small and medium business group comprises 90% of Moroccan companies and creates the most jobs, according to the World Bank.
*Translated by Gabriel Pomerancblum
