The European Neighbourhood Instrument (ENI) was the key EU financing instrument for bilateral cooperation in Morocco for the period 2014-2020. The new Neighbourhood, Development and International Cooperation Instrument (NDICI) will frame the EU’s cooperation for the period 2021-2027. The instrument’s approach includes grant funding as well as blending grants with loans from European and International Financing Institutions.
Under ENI, bilateral assistance followed multiannual programming through the Single Support Framework which defined the areas of focus for EU assistance from 2014 to 2020, in line with the Strategic Priorities.
For the period 2014-2020, the EU’s bilateral assistance to Morocco under the ENI amounted to €1.4 billion and focused on the following priority sectors:
- Equitable access to social services;
- Democratic governance, the rule of law and mobility;
- Employment and sustainable and inclusive growth;
- Enhanced capacity of civil society.
Under the EU External Investment Plan and the blending mechanism of the Neighbourhood Investment Platform (NIP), Morocco has benefited from over €11.5 billion of investment since 2007 for projects in the sectors of renewable energy, electrification, water, transport, urban development, and in support of Micro, Small and Medium Enterprises. EU grants increase the concessional nature of loans from International Financial Institution and absorb political and economic risks. Under the new NDICI instrument, an increased accent on blending EU grants with loans from European and International Financing Institutions will allow partner counties to unlock substantial level of concessional funding for investments. The new system of guarantees provided for under the NDICI will give access to additional funds from the crowding-in of both public and private investors.
On 9 February 2021, the European Commission adopted a Joint Communication on the renewed partnership with the Southern Neighbourhood, establishing a new Agenda for the Mediterranean to relaunch and reinforce the EU’s partnership with the region. It will guide EU policy and programming towards the country for the coming years. The Joint Communication is accompanied by an Economic and Investment Plan for the Southern Neighbours to ensure amongst others that the quality of life for people in the region improves and the economic recovery, including following the COVID-19 pandemic, leaves no one behind. The Plan includes 12 preliminary flagship initiatives to strengthen resilience, build prosperity and increase trade and investment to support competitiveness and inclusive growth. Relevant flagships Morocco will include: (1) support to Morocco’s economic recovery plan, (2) support to the green transition, (3) support to a modern and just social protection system, (4) support to digital development and innovation, (5) support to renewable energy, energy efficiency and resource efficiency, including water use, (6) support to the development of the agricultural sector.