“…Morocco can take advantage of its abundant competitive renewableenergy resources to reduce its still high dependence on fossil fuels.Decarbonizing the energy matrix would require significant investments inrenewable energy, which should be largely shouldered by the privatesector. It would also require deep regulatory reforms, including furtherefforts to liberalize the electricity sector,” said the IMF in itsreport released on Friday.

“Fullyexploiting this renewable energy potential could reduce Morocco´sreliance on imported fuels, help Moroccan firms’ competitiveness inneighboring markets that are embracing a green energy transition (mostnotably the European Union), and help create jobs.”

“Thestrong earthquake that hit Morocco on September 8, exerting a heavytoll in terms of human lives and physical damages, highlights theimportance of strengthening the country’s preparedness and resilience tonatural disasters, including from climate change,” the IMF said,indicating that climate change is both a major threat and a source ofopportunities for Morocco’s development.

Thereport stated that Morocco is one of the world’s most water-stressedcountries, and water scarcity is a serious constraint to the country’sambition to transition to a new model of development. “The authorities are planning to boost investment in waterinfrastructure, but this should be complemented by demand managementreforms that bring the price of water closer to its actual cost andinduce a shift in consumption behavior,”the report said.

Ina related development, the Executive Board of the InternationalMonetary Fund (IMF) today approved today an 18-months arrangement forMorocco under the Resilience and Sustainability Facility (RSF) in anamount equivalent to SDR 1 billion (about US$ 1.32 billion, equivalentto 112 percent of quota).

“TheRSF arrangement will help Morocco address climate vulnerabilities,bolster its resilience against climate change, and seize theopportunities from decarbonization. It would also help the Moroccanauthorities strengthen preparedness for natural catastrophes andstimulate financing for sustainable development. The arrangement wouldcoincide with the remaining 18 months under the FCL arrangement approvedin April 2023,”IMF said in a press statement.