Project Summary

Project General Description

The proposed operation concerns a loan of EUR 199 million to the Kingdom of Morocco to finance the Support Programme for Competitive and Resilient Development of Cereal Farming (PADCRC) in the country. It is a sector budget support programme prepared under the African Emergency Food Production Facility (AEFPF) and will be implemented over the 2022/2024 period. The combined effect of the exceptional drought duringthe 2021/2022 season, the increase in international food prices, and the consequences of the Ukraine-Russia conflict have negatively impacted international supply chains. The programme, which is in response to a government request dated 13 June 2022, was appraised in June 2022. The response to the dual crisis will comprise a series of government measures, which can be grouped under two components: (i) Support for emergency supply of cereals and support for actors in the sector; (ii) Support to improve sector competitiveness, resilience, and governance.

Project Objectives

The objective of the programme is to enhance food and nutrition security by improving the productivity and resilience of national cereal production to guarantee food security in the short term and reduce the country's dependence on cereal imports. The programme’s expected outcomes are as follows: (i) improving the technical and economic performance of the sector; and (ii) building resilience by strengthening the governance of the sector, supporting the sector stakeholders, and adapting to climate change.

Beneficiaries

PADCRC’s direct beneficiary will be the Moroccan Government through the Ministry of Economy and Finance, insofar as the loan resources will be included in the State budget. This will increase the resources mobilised by the Government to contain the cereal import bill and the impact of rising international commodity prices. About 980,000 cereal farmers, most of whom are smallholders (farms of less than 5 ha), will be the main direct beneficiaries of the measures supported. About 70,000 of the farmers will be women, who will witness an improvement in their income, food security and well-being, as well as those of their dependents, estimated at 12.6 million. Morocco’s population, especially those with limited income, will also be direct beneficiaries of the support because it will help preserve their purchasing power (reduction or suspension of customs duties on cereal imports, etc.) and strengthen food and nutrition security. Finally, private operators active in the cereal sector (storage agencies, millers, importers, transporters, etc.) will also be beneficiaries of the support.

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