Morocco is to be backed by the International Finance Corporation to widen its infrastructure investment. The International Finance Corporation (IFC), an institution that offers investment, advisory, and asset-management services to encourage private-sector development in developing countries, is intending to widen infrastructure investment in Morocco, reports Bloomberg. The body considered as the World Bank's sector arm, is planning to spend $373 million in Maghreb nations, especially in the Kingdom of Morocco and Tunisia as the two countries have made efforts to «cut spending to rein in budget deficits», indicated the American magazine. This was confirmed by IFC's Vice President for the Middle East and Africa Sérgio Pimenta. In an interview, the World Bank official stated that the «IFC is also helping the two North African governments form private-public partnerships to help finance infrastructure projects». According to Pimenta, the IFC will also help the two countries, namely Morocco and Tunisia, finance small and medium enterprises and create jobs. The institution's project is part of a bigger plan aiming at bringing foreign investments and fight against unemployment. IMF praises Morocco's reforms Although, the above-mentioned nations will be the only Maghreb economies to benefit from this initiative, the North African Kingdom is in a favorable situation when compared to Tunisia. While the latter has been downgraded in terms of credit rating, fiscal situation and reserves, Morocco's economy is getting stronger. According to Bloomberg, Morocco has gained the IMF's support and praise after implementing new reforms, such as adapting a new exchange rate regime. For Pimenta Morocco's move toward flexibility «makes it more competitive, but it needs additional measures to boost growth», insisting that «investment in education is key, as is facilitating smaller companies' access to finance». Indeed, according to IMF Morocco's economic growth is expected to rise to 4.5 percent in the medium term.
