The FEC is a benchmark financial institution in the financing of local authorities in
Morocco, under the supervision of the Ministry of the Interior.
In 2018 and 2019, the FEC and AFD signed two
agreements (loan of 100 M € and subsidy of 1 M €) within the framework of the CMA1245 project in order to
to accelerate the financing of local investment projects contributing to the sustainable growth of
Moroccan local authorities. This loan was entirely repaid by the FEC in the form of loans
long term to Moroccan communities, testifying to the strong absorption capacity and
redistribution of FEC to the local public sector.
Beyond this first operation, the two
institutions have formalized the outlines of a strategic partnership based on their commitments
in favor of the climate, social cohesion and the reduction of territorial disparities.
A more structuring and transformational approach is therefore engaged for this new project. In response to the FEC's wish, AFD therefore offers to support the institution to decline in a
operational its strategic positioning in favor of
i) sustainable territorial development (via
the adoption by the FEC of a pro-climate approach based on the following triptych: pursuit of a
strategic and operational dialogue on climate finance, formalization and operationalization of a
“climate finance” strategy; and granting of a credit line backed by a "climate" action plan),
the reduction of territorial and social disparities, and
iii) support for the revival of territories in the face of
the economic impacts of the Covid-19 pandemic.
This new project will complement existing projects, while focusing more
on the structural strengthening of the FEC and its capacity to sustainably support communities