EU Allocates $200 Million Loan to Morocco for Earthquake Recovery

The European Union is providing €190 million ($200 million) to Morocco for reconstruction following the devastating September 2023 earthquake. This funding aims to rebuild homes and restore essential services while the overall EU aid for recovery rises to €1 billion. Projections indicate economic growth may slow to 2.8% in 2024 due to agricultural sector challenges.

The European Union (EU) is extending a €190 million ($200 million) loan to Morocco aimed at the recovery and reconstruction of regions affected by the recent earthquake. This funding initiative will focus on rebuilding residential structures, reinstating critical public services like healthcare and education, and rejuvenating local economies, as reported by Morocco World News. The earthquake, which struck in September 2023 at a magnitude of 6.8, resulted in nearly 3,000 deaths and over 6,000 injuries, marking it as the most powerful earthquake in Moroccan history. EU commissioner for neighbourhood and enlargement, Oliver Varhelyi, announced that the total EU aid for earthquake recovery will rise to €1 billion.

In addition to this loan, the European Bank for Reconstruction and Development has approved a separate €200 million loan to the OCP Group, Morocco’s phosphate fertilizer producer, to improve water security through new desalination facilities. However, projections indicate that Morocco’s economic growth may decelerate to 2.8 percent in 2024, primarily due to a 7 percent decrease in the agricultural sector, as highlighted by the country’s central bank.

On September 8, 2023, Morocco experienced a devastating earthquake that caused extensive damage, with significant loss of life and injury to thousands. The subsequent need for a robust recovery strategy necessitated international assistance, prompting the European Union and other financial institutions to mobilize resources for rebuilding efforts. The focus of these funds is not only on physical reconstruction but also on restoring essential services and supporting economic revitalization in affected areas. This response underscores the importance of multi-faceted recovery initiatives in post-disaster scenarios and reflects the ongoing cooperation between Morocco and international partners.

In summary, the European Union’s €190 million loan signifies a pivotal step towards Morocco’s recovery following the tragic earthquake of September 2023. The funds are primarily targeted at rebuilding, restoring essential public services, and revitalizing local economies. Alongside this, the EU’s total aid commitment of €1 billion underscores the response to humanitarian needs, while the anticipated slowdown in economic growth highlights the challenges ahead for Morocco as it embarks on its recovery journey.

Original Source: www.agbi.com