As international aid becomes increasingly scarce, the World Bank, alongside the Ministry of Economy and Finance and the AFD Group, convened a forum on February 11 to explore strengthening collaborative financing efforts.
Global development faces a growing challenge: diminishing resources coupled with increasing project needs. Countries are being asked to invest more in critical areas like infrastructure, transportation, energy, and climate initiatives, even as funding becomes harder to secure. In response, the AFD and the World Bank are prioritizing joint efforts to expand financing options. Morocco is at the forefront of this collaborative approach, boasting a strong track record of successful partnerships.
Over the past decade (from fiscal year 2016 to the present), five projects supported by the World Bank Group in Morocco have benefited from co-financing, mobilizing more than $2 billion in funding. These joint investments have been instrumental in sectors such as urban development, agriculture, and transportation, and are now expanding into health, energy, and digital development. “The experience of Morocco shows that co-financing is not just about pooling resources; it’s a lever to achieve greater, faster, and more transformative results,” said Nadia Fettah, Morocco’s Minister of Economy and Finance.
“When development partners join forces and align with national priorities, we can mobilize more resources – including private capital – reduce aid fragmentation, and support larger, more transformative investments. Morocco is an excellent example of what we can achieve by truly working together to support investments that create jobs and more opportunities,” added Anshula Kant, Managing Director and CFO of the World Bank Group.
Combating Aid Fragmentation
“By combining our strengths through the pooling of our financing, expertise, and operational experience, we can support more robust projects and achieve greater effectiveness for partner countries,” stated Rémy Rioux, CEO of the Agence Française de Développement (AFD Group). Co-financing also addresses a significant issue: aid fragmentation. Partner countries often navigate a complex landscape of donors, each with its own rules, timelines, and procedures, leading to project delays and management complications.
“In the face of dwindling resources, co-financing allows us to do more with less. By working closely with the World Bank, we support stronger projects that are better aligned with the priorities of partner countries,” Rioux emphasized. The need for co-financing extends beyond Morocco. In a world grappling with multiple crises and strained budgets, it is evolving from a useful tool to a fundamental requirement for effective development financing. This shift towards collaboration, rather than independent action, is poised to play an increasingly central role in the future.
The Awful and the AFD
The African Development Bank (BAD) is the AFD’s fourth-largest financial partner and the leading regional multilateral bank. Conversely, the AFD is the BAD’s primary bilateral financial partner. This partnership, considered essential by the AFD given its focus on Africa, centers around key sectors including infrastructure, water, sanitation, agriculture, and the private sector. A framework agreement was signed in November 2015, leading to increased engagement at both headquarters and in the field. A high-level seminar was held in Paris in November 2016, and regional operational seminars, beginning in Abidjan in April 2017, have furthered the implementation of co-financing commitments.
