Marrakech, Morocco, October 10, 2023 — 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.
About IFC
IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2023, IFC committed a record $43.7 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information, visit www.ifc.org
About the Global SME Finance Facility
The Global SME Finance Facility, a blended-finance partnership funded by the UK Foreign, Commonwealth & Development Office (FCDO) and the Netherlands Ministry of Foreign Affairs, is focused on helping to close the financing gap faced by SMEs in emerging markets. Catalyzing access to finance for SMEs, the facility has a goal of generating one million new jobs in the SME sector. For more information, visit www.ifc.org/gsmef.
About CMGP
Founded in 1995, CMGP is a Moroccan leader in irrigation systems, energy solutions and water infrastructure, operating across the entire value chain, including manufacturing, distribution and turn-key projects integration. CMGP benefits from solid and long-standing partnerships with international suppliers and relies on a strong commercial infrastructure, with 11 strategically located branches throughout Morocco. CMGP also extended its presence in Senegal and Ivory Coast to better serve West African markets, strengthening its commitment to providing comprehensive solutions across the African continent.
About Banque Centrale Populaire
BCP group is one of the leading banking institutions in Morocco. It draws its strength from its values of solidarity and its unique organization in Morocco. The Group is made up of 8 Banques Populaires Régionales (BPR) with a cooperative orientation, the Banque Centrale Populaire (BCP), the central institution of the Group -a public limited company listed on the Stock Exchange-, foundations and several subsidiaries in Morocco and abroad. The Group is present in 32 countries around the world. It is, in Morocco, the leading deposits collector and a major actor in the financing of the economy.
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