The European Union (EU) and the European Bank for Reconstruction and Development (EBRD) are stepping up their support for businesses in Morocco with a €6 million loan to Lamatem, a Moroccan producer of high-end medical garments. The financing will help the company to increase its exports to the European markets.
The transaction is the first backed by a risk-sharing guarantee offered by the EU in the municipal, industrial and infrastructure sectors, which helps to address short-term liquidity needs in the context of the COVID-19 recovery response.
The investment will help Lamatem to increase its supply of medical protective equipment and offer a more diverse range of products, through the use of a state-of-the-art sterilisation machine, to local and European medical suppliers.
At the same time, Lamatem will diversify its energy supply and boost the utilisation of renewables with the installation of a solar panel system on the roof of its production facilities. This will lead to significant energy and cost savings.
Olivér Várhelyi, European Union Commissioner for Neighbourhood and Enlargement, said: “The European Union is happy to guarantee this EBRD investment which is part of our joint support to businesses recovering from the COVID-19 pandemic. Our strong cooperation with the EBRD allows us to promote recovery that is good for job creation in our partner countries. This project will also support health care sector and its resilience, key in this crisis.”
Odile Renaud Basso, EBRD President, said: “Our key priority is to support a green, long-term economic recovery across our regions. The strong cooperation with the EU allows us to do this: to improve people’s lives, have a tangible impact on the ground and to build back better. It is in this spirit that we support the Moroccan producer, Lamatem, in its goal to provide much-needed medical products to local and European markets.”
The new project follows an earlier loan supported by the EBRD that helped the company to set up the first plant in Morocco producing single-use surgical scrubs, gowns and protective clothing for doctors and patients.
The EU and the EBRD are teaming up to build more competitive businesses and benefit the environment in the Southern and Eastern Mediterranean region as well as Eastern Europe and the Caucasus. The EU is supporting this effort with a guarantee of €100 million through the European Fund for Sustainable Development (EFSD), which enables investments by the EBRD and other private sector lenders amounting to over €500 million.
The work of the two institutions is expected to benefit dozens of firms, provide thousands of people with improved access to services, support employment and contribute to energy and water efficiency. This will benefit the environment and build more competitive industries.
- Publication date
- 1 April 2021
- Directorate-General for Neighbourhood and Enlargement Negotiations