ADB loan of €149 million to generalize social coverage and improve employability

ADB loan of €149 million to generalize social coverage and improve employability

The Board of Directors of the African Development Bank (AfDB) Group has approved financing of 149 million euros (€M) to implement the support program for the generalization of social security for better employability (PAGCS) – Phase II.

A press release from the financial institution indicates that this project, which is part of the consolidation of the foundations of the social state initiated by Morocco, will benefit self-employed workers, self-employed, micro, small and medium-sized companies, start-ups and cooperative structures throughout the country.

It aims to facilitate the transition from the informal sector to the formal economy and promote the creation of sustainable jobs, adds the AfDB, which specifies that the PAGCS has two components, the first relating to the extension of social protection and the promotion sustainable jobs and the second focusing on support to achieve universal health coverage.

The expected results relate to the creation of jobs for the benefit of people who lost their jobs during the Covid-19 pandemic and who have difficulty accessing the labor market – women and beneficiaries of vocational training in particular.

This operation also aims to bring basic medical coverage to 90% of the population by 2025 (compared to 74.2% in 2021) and to adopt a legal corpus that reorganizes the supply of care with strengthened governance. of the sector, in order to meet the growing health needs of populations in urban and rural areas.

At the same time, the AfDB recalls that the combined effects of the health crisis and inflationary pressures have highlighted the urgency of strengthening social and economic inclusion, by focusing on entrepreneurship, in particular.

In 2021, Morocco had launched a vast social protection project, gradually extending medical and pension coverage to several trades, mostly informal, in order to facilitate the transition from the informal sector to the formal economy. In addition, the government had set up programs to support the integration of populations who had lost their jobs due to the Covid-19 pandemic.

The PAGCS thus adopts an integrated approach to the issues of employment, social protection and health. By improving the employability of populations and the conditions for job creation, the program will help to promote social and territorial cohesion. The PAGCS was developed in coordination with technical and financial partners, and in complementarity with Morocco’s other employment and health policies.

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