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AfDB and Morocco’s Communal Equipment Fund Seal €150 Million Deal to Accelerate Territorial Development
On July 22, 2026, the African Development Bank (AfDB) and Morocco’s Communal Equipment Fund (FEC) signed a second loan agreement worth €150 million. The financing will back sustainable, inclusive and climate‑resilient infrastructure projects across the country, with a focus on rural connectivity, water supply, urban renewal and community facilities. In addition to the loan, the two institutions formalised a donation and a letter of intent to deepen their long‑term strategic partnership, with the AfDB also providing technical assistance to strengthen the FEC’s operational capacity.
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AfDB and FEC Sign €150 Million Funding Deal
On 22 July 2026, the African Development Bank (AfDB) and Morocco’s Communal Equipment Fund (FEC) convened in Rabat to ink a second loan agreement worth €150 million. The partnership aims to boost the investment momentum of Moroccan local authorities by financing sustainable, inclusive and climate‑resilient infrastructure.
Alongside the loan, the two parties also executed a donation agreement and a letter of intent that cement a long‑term strategic collaboration. The AfDB will complement the financing with technical assistance to help the FEC enhance its operational capacities.
Key Areas Funded
- Rural connectivity: construction of road networks to link isolated communities.
- Water supply: extension of potable‑water distribution systems.
- Urban renewal: renovation of city districts and public spaces.
- Education & socio‑cultural facilities: building schools, libraries and community centres.
The overarching goal is to improve public service delivery at the territorial level, especially in underserved rural zones, enhance citizens’ access to essential services, strengthen resilience against climate change, and stimulate job creation and private‑sector investment.
Strategic Vision
Achraf Tarsim, AfDB country manager for Morocco, stated: "These agreements reflect a shared ambition to go further in supporting local authorities as engines of development. Our priority is to accelerate the delivery of sustainable, inclusive and resilient infrastructure for the benefit of the population."
Omar Lahlou, Governor and General Director of the FEC, added: "The strengthened trust between our two institutions, anchored on common values of sustainable development, will translate into socio‑economic progress for Morocco’s territories and a higher quality of life for their residents."
For more than 65 years, the FEC has been the go‑to public credit institution for Moroccan local governments, adapting its interventions to the challenges of territorial disparities, climate resilience and the improvement of local public services.