EBRD, EU support Moroccan medical garments producer with €6m loan financing
The European Bank for Reconstruction and Development (EBRD) and the European Union (EU) are stepping up their support for businesses in Morocco, with a €6 million loan to Lamatem, a Moroccan producer of high-end medical garments. The financing will help the company to increase its exports to European markets.
The transaction is the first backed by a risk-sharing guarantee offered by the EU in the municipal, industrial and infrastructure sectors, helping to address short-term liquidity needs in the context of recovery from the Covid-19 pandemic. The investment will help Lamatem to increase its supply of medical protective equipment and to offer a more diverse range of products, through the use of a state-of-the-art sterilisation machine, to local and European medical suppliers.
At the same time, Lamatem will diversify its energy supply and boost the use of renewables, with the installation of a solar panel system on the roof of its production facilities. This will lead to significant savings in terms of energy and cost.
Odile Renaud-Basso, EBRD President, said: “Our key priority is to support a green, long-term economic recovery across our regions. The strong cooperation with the EU allows us to do this: to improve people’s lives, to have a tangible impact on the ground and to build back better. It is in this spirit that we support the Moroccan producer, Lamatem, in its goal of providing much-needed medical products to local and European markets.”
Olivér Várhelyi, European Union Commissioner for Neighbourhood and Enlargement, said: “The European Union is happy to guarantee this EBRD investment, which is part of our joint support to businesses recovering from the Covid-19 pandemic. Our strong cooperation with the EBRD allows us to promote a recovery that is good for job creation in our partner countries. This project will also support the healthcare sector and its resilience, which are key in this crisis.”
The new project follows an earlier loan supported by the EBRD that helped the company to set up the first plant in Morocco producing single-use surgical scrubs, gowns and protective clothing for doctors and patients.
The EBRD and the EU are teaming up to build more competitive businesses and benefit the environment in the southern and eastern Mediterranean region as well as in eastern Europe and the Caucasus. The EU is supporting this effort with a guarantee of €100 million through the European Fund for Sustainable Development (EFSD), which is enabling investments by the EBRD and other private sector lenders amounting to more than €500 million.
The work of the two institutions is expected to benefit dozens of firms, provide thousands of people with improved access to services, support employment and contribute to energy and water efficiency. This will benefit the environment and build more competitive industries. The EBRD invests to promote sustainable and inclusive private-sector development in nearly 40 economies, ranging from Estonia to Egypt and from Morocco to Mongolia.