The World Bank approved last week $500 million to help strengthen human capital and resilience in Morocco.

Minister Delegate in charge of the Budget Fouzi Lekjaa and World Bank Director of Operations for the Maghreb and Malta Jesko Hentschel signed the agreement on Monday, which represents the first tranche of the approved loan.

This budget support program seeks improvements in the protection against health risks, human capital losses during childhood, poverty in old age, and climate change risks, the bank stated.

Lekjaa said in press statements on this occasion that the agreement will enable the kingdom to undertake reforms launched by King Mohammed VI.

He said that the bank’s support indicates that this large and credible reform gives legitimacy to government action to make this challenge a success by 2025 and ensure providing the conditions of a dignified life for all Moroccans.

Hentschel, for his part, stressed that the bank considers the reform of social protection in the Kingdom “very innovative, ambitious and integrated.”

The proposed financing is based on three pillars, the first of which includes measures to bolster physical and human resources to improve health services for all beneficiaries, enroll up to 11 million self-employed workers and their dependents and integrate up to 11 million people currently enrolled in Medical Assistance Scheme into the compulsory health insurance.

The second pillar includes measures to implement the family allowance program and expand coverage of pension plans.

It provides for adopting decrees and other legislation to ensure proper governance, identification and targeting of health and social protection reforms.

The third pillar focuses on improving resilience to natural disasters and climate risks, including strengthening institutional and coordination framework for disaster and climate risk management, establishing coordination committees of key stakeholders, and improving risk transfer mechanisms such as agricultural insurance.