The International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA), both part of the World Bank, have established an important partnership with the Moroccan port of Tangier Med to boost the Kingdom’s strategic position as a global trade hub.
As reported by Morocco World News, the partnership aims to upgrade the truck and passenger terminal at Tangier Med, the leading container port in the Mediterranean and Africa, thus consolidating Morocco’s position as a key hub for regional and global trade.
Strategically located on the Strait of Gibraltar, Tangier Med is connected to more than 180 ports worldwide. In 2023, it consolidated its position as a global logistics hub, handling more than 122 million tonnes of goods, 8.6 million twenty-foot equivalent units (TEUs) and 477,000 trucks.
In addition, the industrial and logistics zones of the complex are home to more than 1,300 companies from various sectors, including aviation, textiles, automotive and agri-food, generating more than $15 billion in turnover and creating 120,000 jobs.
To support the successful operation of the port, the IFC has provided a loan of approximately $210 million to Tangier Med, including some $50 million from its Joint Portfolio Lending Programme.
As reported in Moroccan media, this financing represents the first project in Morocco linked to sustainability indicators and is among the first in the port sector in emerging markets globally, with key performance metrics focusing on gender diversity and the use of renewable energy.
Loubna Ghaleb, Member of the Executive Committee and Chief Strategy Officer of the Tanger Med Group, welcomed the agreement in a press release highlighting the ‘key role in Morocco’s imports and exports’ played by the complex.
‘This project will significantly increase the truck handling capacity of the port complex, support the growth of exports in the agri-food and industrial sectors and strengthen trade ties between Morocco and Europe,’ he added.
This financial agreement is expected to increase the port’s capacity, increasing the number of trucks handled to more than one million. The project is also expected to create direct jobs, stimulate economic growth and improve investor confidence in Morocco’s infrastructure sector.
In addition, a consortium of international banks led by JP Morgan is providing a commercial loan of approximately $220 million. MIGA will also provide a 15-year guarantee against default on financial obligations, which will protect lenders from losses due to any default on payment obligations by the public entity.
‘This is our second financial default guarantee project in Morocco aimed at improving port infrastructure,’ said Hiroshi Matano, executive vice president of MIGA, in the statement, where he also expressed optimism about the possibility of extending similar projects to other SOEs in the country to boost productivity.
For his part, David Tinel, IFC regional representative for the Maghreb, said the initiative ‘will strengthen Morocco’s position as a fast-growing maritime and logistics hub, strategically positioned to connect major markets in Europe, Africa and the Americas’.
Tinel hopes the initiative will attract additional investment to Morocco’s infrastructure sector as the country prepares to co-host the 2025 Africa Cup of Nations and host the 2030 FIFA World Cup.
As the leading container port in Africa and the Mediterranean, Tangier Med offers direct maritime connections to 180 ports in 70 countries. In addition, the Tangier Med Group is committed to promoting gender diversity through programmes designed to capitalise on women’s access to leadership positions, with the aim of increasing the representation of female executives.
Moreover, in order to become a clean energy hub, Tangier Med aims to increase the proportion of green electricity generated from solar and wind sources. Thanks to these new agreements, measures to mitigate climate risks will be implemented, including the raising of breakwaters and piers to combat rising sea levels and the extension of piers to accommodate larger, less polluting vessels.
These initiatives will not only strengthen Morocco’s trade capacities and regional connectivity, but will also have positive effects on multiple economic sectors.
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