Global Economy
Germany’s KfW Commits €450 million to Morocco for Climate, Social Protection & Rail Projects
On 16 December 2025, Morocco and Germany’s development bank KfW inked three financing agreements worth a total of €450 million. The packages target climate‑resilience measures, expansion of the country’s social‑protection system and a major upgrade of the railway network in the Casablanca‑Settat region. High‑level officials from both sides hailed the deal as a milestone in bilateral cooperation. The climate programme will receive €100 million, the social‑protection phase two €150 million, and €200 million will be earmarked for modernising stations and rail infrastructure in the Casablanca‑Settat mobility hub.
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On Tuesday, 16 December 2025, the Ministry of Economy and Finance in Rabat hosted the signing of three financing agreements between Morocco and the German Development Bank (KfW). The ceremony was attended by Fouzi Lekjaa, Minister Delegate in charge of the Budget, and Daniela Beckmann, KfW’s Managing Director for North Africa, alongside German Ambassador Robert Dölger, KfW’s Rabat Office director Janne Rajpar, and senior Moroccan ministers.
Key participants included:
- Mr. Nizar Baraka – Minister of Equipment and Water
- Ms. Leila Benali – Minister of Energy Transition and Sustainable Development
- Mr. Younes Sekkouri – Minister of Economic Inclusion, Small Business, Employment and Skills
- Mr. Zouhair Chorfi – President of the National Electricity Regulation Authority
- Mr. Mohamed Rabie Khlie – Director General of the National Office of Railways (ONCF)
- Ms. Wafaa Jamali – Director General of the National Social Support Agency
Financing breakdown
- Climate Policy Support – Phase II: €100 million will be channelled to strengthen Morocco’s climate‑resilience actions and accelerate the shift toward a low‑carbon economy.
- Social Protection – Phase II: €150 million dedicated to consolidating the country’s social‑protection framework, focusing on direct social aid and active employment programmes, especially for NEETs (young people not in education, employment or training).
- Casablanca‑Settat Mobility & Logistics Platform (ONCF): €200 million earmarked to upgrade railway infrastructure in the Casablanca‑Settat region, including modernising stations and expanding services.
At the close of the event, Mr. Lekjaa and Ms. Beckmann underlined the strong partnership between the Kingdom of Morocco and the Federal Republic of Germany and expressed a shared commitment to deepen cooperation in the coming years.