With a labour force of around 200,000, the textile sector is a key employer in Morocco. While sector performance has stagnated over the past decade, the last year saw an uptick in activity, with exports increasing by 5% in 2014, according to preliminary figures released by the Office des Changes. Performance The ailing sector owed its poor performance over the past decade to a number of factors,…
A 2012 World Bank report suggested that as much as one-fifth of private sector employment in Morocco comes from small and medium-sized enterprises (SMEs), while the African Development Bank reported in 2014 that SMEs provide roughly half of the industrial sector’s employment and nearly 40% of its turnover. The authorities are particularly keen to bolster SMEs in the arts and handicrafts industry,…
Per capita consumption of medicines in Morocco is low, with annual spending per citizen hovering around Dh400-500 (€44-54) compared to €61 in Algeria and €98 globally. This gap is due in large part to the high cost of medicine compared to average incomes. Authorities have worked to broaden health insurance coverage, as well as to implement a price reduction policy for drugs. The latter, initiated…
The Moroccan aeronautical industry has made significant strides over the past decade, with its industrial base growing from around 10 companies to over 100 today. The sector generated $1bn in turnover in 2013 and was the main source of employment for 10,000 people. Aeronautics exports accounted for 6% of total exports in 2013, up from 0.5% a decade earlier, and the list of major manufacturers present…
North Africa has undergone some turbulent times over the past four years, but among all of the regime changes and revolutions, Morocco has maintained an impressive level of stability. The kingdom has deliberately cultivated a reputation as one of the most moderate and tolerant countries in the region, aided in part by reforms enacted under King Mohammed VI, who ascended to the throne in 1999. Over…
Owing its ancient name to its geographic location, Morocco, also known as Al Maghreb, meaning “the West” in Arabic, boasts a mix of indigenous Berber, Arab, African and European influences. Situated on the western tip of North Africa and the region’s only monarchy, the kingdom has been able to fashion its rich cultural heritage into a tolerant state. A comparatively pragmatic and inclusive approach…
In recent years Morocco has seen steady GDP growth and consistently low inflation – in contrast to its neighbours to the north. The country’s economic performance has both diversified and strengthened on the back of growth in the secondary and tertiary sectors, and has been aided by government efforts to channel capital into other productive industries such as manufacturing, finance and telecoms.…
Morocco’s trade balance improved substantially in 2014 and is set to perform better still in 2015 thanks to factors such as lower oil prices and improving conditions in major export markets, though it is set to maintain a large trade deficit for the foreseeable future. Levels of inward foreign direct investment (FDI) have grown substantially in recent years, boosted by factors such as a range of…
How has the banking system evolved in recent years, and what are the priorities going forward? BENJELLOUN: There is general consensus about the strength of Moroccan banks, which play a healthy role in financing the economy, driving structural reforms and supporting companies and small and medium-sized enterprises (SMEs). Some key areas of success over the last 20 years include total assets,…
Among the best-developed banking sectors in Africa is that of Morocco, where penetration is rising rapidly and recent improvements in macroeconomic fundamentals have helped resolve previous liquidity shortages. The sector’s product offering also continues to evolve, most notably through a banking law passed in early 2015, which has set the stage for the creation of fully sharia-compliant banks. Morocco’s…
