Morocco Secures $600M from World Bank to Strengthen Social Protection and Climate Resilience

The first two phases of the “Strengthening Human Capital for a Resilient Morocco” program, approved in June 2022 and December 2023, laid the groundwork for transformative legislative and policy changes.

In a significant step toward bolstering social protection and climate resilience, the World Bank’s Board of Directors has approved a $600 million financing package for the third phase of the “Strengthening Human Capital for a Resilient Morocco” program. This operation, the final installment in a series of three, is designed to enhance Morocco’s capacity to withstand health risks, improve early childhood human capital development, reduce poverty among the elderly, and reinforce the country’s ability to manage climate-related risks.

Addressing Morocco’s Socioeconomic Challenges

Since 2020, Morocco has grappled with a series of complex challenges, including the COVID-19 pandemic, commodity price volatility, inflationary pressures, a devastating earthquake, and prolonged droughts. These crises have underscored the urgency of establishing robust social protection mechanisms and economic reforms. In response, the Moroccan government has launched an ambitious transformation agenda, guided by its New Development Model, aimed at fostering stronger and more equitable growth.

The financing from the World Bank is part of a broader strategy to support Morocco’s national reforms, which prioritize:

• Expanding mandatory health insurance to cover the entire population under a unified scheme managed by the National Social Security Fund (Caisse Nationale de Sécurité Sociale – CNSS).
• Extending free health insurance to vulnerable populations.
• Overhauling healthcare services to ensure equitable distribution of medical professionals and modernize service delivery.
• Implementing a Direct Social Aid program to provide targeted cash transfers to low-income households.
• Expanding pension coverage to protect elderly populations from economic hardship.
• Enhancing disaster risk management to improve resilience against climate shocks, particularly for communities most vulnerable to extreme weather conditions.

Building on Previous Successes

The first two phases of the “Strengthening Human Capital for a Resilient Morocco” program, approved in June 2022 and December 2023, laid the groundwork for transformative legislative and policy changes. These included the generalization of compulsory health insurance and the launch of an integrated social assistance system. The third phase seeks to consolidate these gains by:

• Strengthening governance frameworks to improve implementation efficiency.
• Detailing the operationalization of cash transfer and pension schemes to ensure maximum impact.
• Increasing the effectiveness of climate disaster risk management initiatives.

Advancing Universal Health Coverage

Morocco has made remarkable progress toward achieving Universal Health Coverage (UHC). The government aims to provide health risk protection through an expanded insurance network, improved healthcare service provision, and a more equitable distribution of medical personnel across the country. Currently, 75 percent of the Moroccan population is covered under health insurance schemes, a significant milestone. However, challenges persist, particularly in ensuring coverage for non-salaried workers and informal sector employees.

The latest financing will enable Morocco to further strengthen health insurance implementation, enhance service quality, and address disparities in healthcare access, particularly in rural and underserved regions.

Direct Social Aid Program and Pension Reforms

A key component of the initiative is the Direct Social Benefits Program, spearheaded by the newly established National Social Support Agency (Agence Nationale du Soutien Social - ANSS). This program is designed to reach up to 60 percent of the population not currently covered by other family allowance schemes, ensuring that more Moroccans benefit from financial support mechanisms.

Additionally, Morocco is working to expand pension coverage, particularly for workers in informal sectors who are often left vulnerable in old age. By implementing sustainable pension policies, the government aims to reduce elderly poverty and provide long-term financial security for its aging population.

Enhancing Climate Resilience

In recognition of Morocco’s vulnerability to climate change, particularly in agricultural and rural areas, the program also includes measures to improve climate risk management. The financing package will support initiatives to strengthen disaster preparedness, enhance early warning systems, and develop adaptive strategies to mitigate the impact of extreme weather events.

Ahmadou Moustapha Ndiaye, Division Director for the Maghreb and Malta at the World Bank, highlighted the broader significance of these reforms:

“This initiative, which aligns with the two previous operations, aims to further enhance Morocco’s social protection system. Currently, the system is already helping around 75 percent of the population to have access to more affordable health care and over 40 percent of households to access cash transfers. These reforms are designed to make the system more comprehensive, equitable, and efficient, particularly benefiting climate-vulnerable populations like farmers.”

A Path Toward Sustainable and Inclusive Development

The approval of this $600 million financing package underscores the World Bank’s confidence in Morocco’s reform agenda. By strengthening human capital development, expanding social protection, and enhancing climate resilience, Morocco is positioning itself as a model for sustainable and inclusive growth in the region.

As the country continues to navigate economic and environmental challenges, the implementation of these reforms will be critical to ensuring that all Moroccans—especially the most vulnerable—have access to the resources they need to build a more resilient future.