EBRD Eyes €30M Loan to SGMB to Boost Green Investment in Morocco

The European Bank for Reconstruction and Development (EBRD) is considering a €30 million loan to Société Générale Marocaine de Banques (SGMB) to support the green transition. This financing aims to encourage private investment in high-impact climate projects, with the support of international partners such as Canada and the European Union.

The European Bank for Reconstruction and Development (EBRD) continues its commitment to sustainable finance in Morocco. It is currently considering a €30 million loan to Société Générale Marocaine de Banques (SGMB) under the MidGEFF Morocco program.

The operation, currently under review, is part of an ambitious approach aimed at stimulating private investment in projects with a high environmental impact.

This funding will be part of a total budget of €55 million, divided between a €30 million MidGEFF loan and additional funding of €25 million from the GEFF III program. It will also benefit from joint support from international partners, including Canada, through the HIPCA (High Impact Partnership on Climate Action) fund, to the tune of €2.4 million in co-financing.

Supporting businesses in their energy transition

Concretely, the resources mobilized will allow SGMB to grant loans to private Moroccan companies wishing to invest in initiatives aligned with the objectives of combating climate change.

The focus will be on projects to mitigate greenhouse gas emissions, climate adaptation and reduce the environmental footprint in key sectors of the economy.

The areas of intervention are vast, including industrial energy efficiency, renewable energy, green building construction, sustainable infrastructure, climate adaptation (water, desalination, waste treatment), and the circular economy. The goal is to support the Moroccan economy in a low-carbon transition while strengthening its long-term competitiveness.

EBRD and SGMB: A Structuring Partnership

A long-standing partner of the EBRD, SGMB already has solid experience in green finance. The proposed loan would consolidate this momentum, allowing the bank to diversify its climate-focused financing lines while strengthening its internal capabilities.

SGMB will indeed have to maintain a rigorous environmental and social management system to assess the risks of the financed sub-projects, in accordance with EBRD standards.

The Bank also commits to meeting several specific requirements, including Performance Standards 2, 4, and 9 of the EBRD’s Environmental Policy, as well as national legal requirements relating to the environment, health, safety, and labor law. Sub-borrowers will also be required to comply with these stringent criteria.

To support this initiative, technical assistance will be provided to ensure project preparation, monitoring, and verification. This support, funded by the European Union through the Morocco Decarbonization and Climate Resilience (MDCR) program, will also strengthen SGMB’s technical and operational expertise in sustainable finance.

With a Transition Impact Score of 60, this project demonstrates the EBRD’s commitment to actively supporting Morocco in achieving its climate commitments. It comes at a time when the country is striving to position its banking sector as a lever for decarbonization and economic resilience.

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(Featured image by Mauro Sbicego via Unsplash)

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First published in LES ECO.ma. A third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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