HIBAPRESS – Rabat
The Board of Directors of the African Development Bank Group approved, on Wednesday, to grant a non-sovereign partial credit guarantee of up to 450 million euros to the Office Chérifien des Phosphates group.
The African Development Bank explained in a statement that this new type of financing mechanism, which is being activated for the first time in Morocco, is a step aimed at enabling the Office Chérifien des Phosphates group to mobilize up to 530 million euros in loans from international financial institutions, in line with its green financing framework, with the aim of securing long-term financing for the Green Investment Program 2023-2030.
The same source quoted the Resident Representative of the African Development Bank in Morocco, Ashraf Tarsim, as saying that "by benefiting from our AAA credit rating to mobilize international capital, we are supporting the Office Chérifien des Phosphates group's transition to the production of low-carbon fertilizers, the development of renewable energy, and the sustainable management of water, which are essential pillars for food and climate security on the continent."
The statement noted that the resources that will be mobilized will contribute to the implementation of projects aimed at reducing greenhouse gas emissions, developing clean energies, and improving operational efficiency, whether in terms of water or energy. It will also support initiatives to preserve soil health and promote sustainable agricultural practices.
He added that this financing will contribute to supporting a portfolio of green investments that will avoid more than 43 million tons of carbon dioxide emissions during the period 2026-2038, in addition to creating thousands of job opportunities, especially for young people and women.
He mentioned that the project is in line with the bank's four key priorities, specifically the first key priority, which aims to liberate Africa's financial potential and attract the capital needed to finance sustainable development on the continent, and the fourth key priority, dedicated to developing a resilient infrastructure that achieves added value, considering that the Office Chérifien des Phosphates is an effective international strategic group that effectively contributes to the sustainable development of the agricultural sector in Africa and around the world.
