- AfDB has approved a $1 million technical assistance programme to strengthen Crédit Agricole du Maroc’s capacity to finance climate-aligned projects.
- The move reflects a broader shift toward building domestic financial systems capable of scaling green finance across Africa.
The African Development Bank has approved a $1 million technical assistance programme for Crédit Agricole du Maroc Group. This move shows how African development finance institutions are focusing more on building green finance systems than on announcing large project totals.
The Bank announced the support in Rabat in late January. It is delivering the programme through the African Green Banks Initiative and the Multilateral Cooperation Center for Development Finance. The funding will strengthen the institutional, operational and financial capacity of Crédit Agricole du Maroc. As a result, the bank will improve how it identifies, structures and finances climate-aligned projects. It will also improve how it tracks and reports climate impact.
For Morocco, the programme supports ongoing efforts to align domestic financial flows with national climate priorities. The country’s Nationally Determined Contribution commits it to cutting emissions while adapting agriculture, water systems and infrastructure to climate risks. However, meeting these targets requires strong domestic financial institutions. Therefore, local banks must channel capital into climate-relevant and commercially viable sectors.
The technical assistance will target key financing gaps. These include sustainable agriculture, rural development, water management, clean energy, resilient infrastructure and connectivity. In practice, the programme will help the bank build tools to assess climate risk. It will also help structure blended finance deals. In addition, it will align lending with international climate finance standards that global funds and investors now require.
Across Africa, many financial institutions face similar challenges. Although many countries have strong climate strategies, local banks often lack systems to package projects for global climate funds or institutional investors. As a result, African economies often rely on external intermediaries. Consequently, funding flows more slowly and reduces domestic ownership of climate finance.
Achraf Tarsim, the African Development Bank’s country manager for Morocco, described the initiative as proof that African institutions can finance complex climate investments. He noted that Morocco built its reputation through reforms in energy, water and agriculture. Moreover, the country has worked for years to integrate climate priorities into public planning and finance.
For Crédit Agricole du Maroc, the programme marks a strategic shift. Historically, the bank focused on agriculture and the rural economy. Now, it is expanding into resilient infrastructure and connectivity, where climate risks are increasing. Today, flooding, drought and water scarcity threaten not only farming but also transport systems, supply chains and regional development plans. Therefore, financing solutions now require longer repayment periods, more complex risk-sharing and stronger alignment with public policy.
Deputy General Manager Mustapha Chehhar said the partnership strengthens the bank’s role in Morocco’s climate transition. He explained that the support will help the bank move beyond traditional agricultural finance. In addition, it will help the bank access international climate finance and attract private investment into projects that might otherwise struggle to secure funding.
The initiative also aligns with the African Development Bank Group’s wider strategy under President Dr Sidi Ould Tah. This strategy focuses on mobilising African capital, strengthening financial systems and investing in climate-resilient infrastructure. Therefore, the $1 million grant focuses more on leverage than scale. By strengthening a domestic bank, the Bank aims to unlock much larger financing flows over time.
Since 1978, the African Development Bank Group has mobilised nearly €15 billion for more than 150 projects in Morocco. These projects cover transport, water, sanitation, energy, agriculture, social protection and governance. However, this latest programme focuses more directly on how financial systems must evolve as climate risks reshape development priorities.
Across Africa, governments face growing pressure to deliver climate commitments with limited public funding. Therefore, domestic banks must develop the ability to originate and manage green investments. In this context, the Morocco programme shows how development finance is shifting. Instead of only funding assets, institutions are now strengthening financial systems. This approach may deliver slower headlines. However, it may also create a stronger and more sustainable foundation for scaling climate action across Africa.