To support the expansion of micro irrigation, solar energy and efficient water management systems in Morocco, IFC today announced a partnership with Banque Centrale Populaire (BCP) and Compagnie Marocaine de Goutte-à-Goutte et de Pompage (CMGP) that will benefit thousands of farmers and SMEs in the country.
Through IFC’s $36 million risk sharing facility, BCP will provide loans primarily to farmers and SMEs in CMGP’s distribution network to help them acquire energy-efficient, solar-powered watering systems, such as micro irrigation. The new systems will conserve water and replace fuel-run systems, reducing greenhouse gas emissions.
Almost 30,000 farmers are expected to benefit from this new equipment by 2027, which will lower their long-term energy costs and improve their crop yields. CMGP is Morocco’s largest manufacturer and distributor of irrigation systems and water infrastructure.
“This strategic initiative will significantly enhance our capacity to drive innovation and sustainability in the sectors we serve. By facilitating access to funding for projects that conserve water, promote renewable energy and bolster crucial water infrastructure, we aim to foster economic growth and environmental stewardship. Furthermore, our commitment to financing our reliable distributors indirectly promotes the growth of the agricultural and water infrastructure sectors by consistently supplying them with the necessary equipment. This empowers both SMEs and the agricultural community to thrive, ultimately contributing to the overall development of the regions we serve,” said Youssef Moamah, CEO of CMGP.
“Through our partnership with IFC and under this program, BCP will confirm its support and full engagement for investments in renewable energies and efficient water management products for the Moroccan agricultural sector by improving access to financing for farmers and distributor companies which are part of the CMGP ecosystem in Morocco,” said Mohamed Karim Mounir, Chairman and CEO of BCP Group.
“Leveraging the strength of the private sector to finance farmers and smaller agribusinesses is key to providing food security, particularly in the face of global shocks like climate change,” said Makhtar Diop, IFC Managing Director. “We are proud to partner with CMGP and BCP to support more sustainable production in Morocco’s agriculture sector,”
IFC’s risk sharing facility will mitigate BCP’s risks and aims to support increased lending to Morocco’s agriculture sector, which needs increased financial support to improve production and mitigate and adapt to the risks of climate change.
IFC will also provide advisory services to CMGP distributors to enhance their management and distribution capabilities. The training is provided by programs under IFC’s Global Food Security Platform (GFSP), a $6 billion global financing facility that is helping to build the foundation of a more resilient global food system.