EBRD lends Morocco € 34.5 mn to support the pharmaceutical sector

The facility to Dislog will consist of two tranches. MAD 270 mn (€24.5 mn) will be used to acquire Steripharma, a local pharmaceuticals manufacturer that provides affordable specialty generics medicines to replace expensive original products in the treatment of life-threatening diseases.

The remaining €10 mn loan will finance the construction of a new green-certified industrial building and logistics platform as well as the installation of photovoltaic (PV) panels. The new PV panels are expected to generate energy to power the building and will help reduce CO2 emissions. This tranche will be supported by a guarantee from the European Union (EU) through its European Fund for Sustainable Development (EFSD), in line with the objective of the EU-Morocco Green Partnership.

The investment will enable Dislog to expand into the pharmaceuticals industry and capture higher added value in the supply chains in Morocco. The acquisition of Steripharma will complement Dislog’s established competence in reaching a wide network of small distribution outlets and help increase profit from its existing distribution channels and logistics chains.

The loan will be accompanied by a technical assistance project funded by the EU through the EFSD programme to upgrade its human resources policies by implementing a dedicated Gender Diagnostic and Action Plan. The project will help Dislog promote gender equality and the career progression of female workers, along with policies related to childcare and the prevention of gender-based violence and harassment.

Dislog will also receive a grant from the FINTECC Programme, which helps companies in participating EBRD economies to implement innovative climate technologies. The programme is part of, and financed through, the EBRD’s Green Economy Transition approach and is supported by the Global Environment Facility and the European Union.

Dislog is a leading distributor of fast-moving consumer goods covering more than 70,000 retailers across the country. Founded in 2005, the company has diversified its activities into industrial production in agribusiness products, hygiene and pharmaceuticals.

The EU’s EFSD guarantee programme champions financing and investment in Africa and the EU neighbourhood. It supports EBRD operations in the southern and eastern Mediterranean (Egypt, Jordan, Morocco, Tunisia, Lebanon and the West Bank and Gaza), as well as eastern Europe and the Caucasus (Armenia, Azerbaijan, Georgia, Moldova and Ukraine).

Morocco is a founding member of the EBRD and became a beneficiary of Bank resources in 2012. To date the EBRD has invested €4.2 bn in the country through 95 projects.