The Industrialization Acceleration Support Programme in Morocco – Phase II (PAAIM II) worth Euro 268 million intends to lay the foundations for a strong and sustainable, diversified and inclusive economy that is resilient to external shocks, particularly climate shock, by accelerating and strengthening the industrialisation process. PAAIM is a two-phase programme-based sector budget support (SBS) covering the periods 2017/2018 and 2019/2020. Therefore, the programme contributes to addressing the major challenges and constraints that Morocco faces in achieving sustainable and balanced socio-economic development. The implementation of the first phase of the programme (PAAIM I), financed to the tune of USD 200 million, is considered satisfactory. The programme supported flagship measures to enhance the competitiveness of Moroccan export industries and fostered the emergence of renewable energy financing tools through the issuing of green bonds. It also helped to improve the legal framework for industrial land and support industrial subcontracting enterprises through better-targeted tax incentives. Lastly, the programme initiated the development of guarantees for women entrepreneurs. PAAIM II, which is the second phase of the programme, will continue to implement the reforms already initiated during the 2017/2018 period (PAAIM I) to cover the 2019/2020 period, to facilitate alignment with the country’s development policies and create the conditions for inclusive, resilient and sustainable growth. It will contribute to achieving the following outcomes: i) greater support for the promotion of industrial investments; ii) greater support for the promotion of industrial exports; iii) the support for the financing of SME development; and iv) the facilitation of business start-ups and green financing.