African bank operations in Morocco will match the country's options, bank chairman

The African Development Bank's operations in Morocco, in the 1999-2001 period, will be conform to the five-year plan that is being drafted by the government, said Omar Kabbaj, chairman of the Abidjan-based ADB.

Speaking at a conference held in Casablanca by the international chamber of commerce, Kabbaj, a former Moroccan minister, said the African bank will contribute to Morocco's economic and social programs through actions focusing on three axes: increasing investments, developing human resources and promoting structural reforms geared to upgrading enterprise competitiveness.

Kabbaj recalled that Morocco is one of the largest shareholders and customers of the bank as it holds 3.7% of the bank's capital and obtained 10.7% of the cumulated financial commitments in Africa. Loan commitments were estimated by end 1998 at some $3.8 billion. Out of this amount, almost one fourth went to agriculture and food security while 30% of the Bank's funds went to infrastructure projects (water, electricity, roads and others) and some $980 million was earmarked to support reforms and programs to restructure macro-economy and finance.

The bank has also granted the Moroccan industrial and banking sector loans accounting for 9% of the cumulated financial commitments and earmarked $310 million to finance social projects, mainly in the field of rural education and health care.

Kabbaj also called African countries to carry on structural reforms in order to attract private capital, diversify exports and spare their economies the hazards of exchange terms fluctuations.