Highlights from day two of IMF-World Bank annual meetings in Morocco

Highlights from day two of IMF-World Bank annual meetings in Morocco

The International Finance Corporation (IFC), a part of the World Bank Group, signed four agreements merging financing with investment with Moroccan institutions and companies. These agreements aim to promote development and support reconstruction after a recent earthquake.

The signing ceremony had notable figures like Minister of Economy and Finance Nadia Fattah, IFC Director General Mokhtar Diop, Minister of Energy Transition and Sustainable Development Leila Benali, and President and Director General of the Office Chérifien des Phosphates Mustapha Terrab in attendance.

The total value of these agreements was approximately $200 million, contributing to the financing and support of “four development projects for Moroccan companies.” These projects focus on food security, access to finance, sustainable agriculture, and construction in Morocco and other parts of Africa, as part of Morocco’s post-earthquake economic recovery strategy.

These investments reflect IFC’s commitment to fostering sustainable private sector activity in Africa, creating job opportunities and providing essential goods and services. The agreements include financing for the OCP group’s solar energy program, an investment in the “Risk Sharing” program for the “Banque Populaire BCP” group, support for low-carbon cement production through a $45 million green loan to Ciments de l’Afrique (CIMAF), and a $10 million investment in the Moroccan financial services company CASHPLUS to enhance financial inclusioo

US Treasury Secretary urges more IMF, World Bank reforms for climate fight

Janet Yellen, the US Treasury Secretary, expressed her support for enhancing the lending capabilities of both the IMF and the World Bank to address issues related to poverty and climate change. She made this statement during the IMF-World Bank annual meetings in Morocco.

Yellen emphasized the necessity for the global lending system to adapt to contemporary challenges. She asserted that the system should evolve to address the pressing global issues of our time. The World Bank’s board of governors is set to endorse a new vision aimed at “ending poverty on a livable planet,” as advocated by World Bank President Ajay Banga.

Yellen noted that it is now widely accepted that addressing climate change and other global challenges is integral to achieving development. Consequently, measures to increase the lending capacity of the World Bank are being considered.

World Bank President Banga has pledged to reform the institution to enhance its functionality, with potential changes to the balance sheet that could provide an additional $125 billion in lending capacity. Coupled with reforms by regional development banks, this could result in at least $200 billion in additional funding capacity.

However, Yellen emphasized that relying solely on multilateral development banks (MDBs) for financing would not suffice to achieve the UN’s Sustainable Development Goals, which encompass eradicating hunger and poverty. She called for MDBs to establish concrete targets for mobilizing private capital and incentives for staff to meet these objectives.


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