The initiative seeks to enhance early childhood development, reduce poverty among the elderly, and strengthen resilience to health and climate risks, the World Bank said in a press release.

"This program builds on previous efforts to expand Morocco’s social protection system,” said Ahmadou Moustapha Ndiaye, the World Bank’s director for the Maghreb and Malta.

"Today, around 75% of the population benefits from more affordable healthcare, while over 40% of households receive cash transfers,” he added, highlighting reforms aimed at making the system more inclusive and efficient, particularly for climate-vulnerable groups such as farmers.

Morocco has faced multiple shocks since 2020, including the COVID-19 pandemic, inflation, a devastating earthquake, and prolonged droughts. In response, the government has pursued wide-ranging reforms under its New Development Model to drive more equitable and resilient growth.

The latest financing will help expand compulsory health insurance, enhance free healthcare for vulnerable groups, overhaul social assistance programs, and improve pension coverage. It follows two previous World Bank operations, approved in 2022 and 2023, which supported key legislative changes, including the rollout of mandatory health insurance and direct cash transfers.

This final phase aims to consolidate progress by strengthening governance, refining cash transfer and pension programs, and improving disaster risk management.

Morocco is advancing toward universal health coverage, expanding insurance access, modernizing healthcare services, and addressing disparities in medical personnel distribution, the bank said.