Economy
From The Report: Morocco 2013
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The Moroccan economy experienced several setbacks in 2012 due to a combination of unfavourable global economic trends, a volatile exchange rate and a drought that caused a drop in revenues from its primary sector, agriculture. However, the government is committed to addressing the most pressing concerns for the economy, having laid out development plans for the agriculture and tourism sectors. A strategy to expand emerging industries and exports is also placing emphasis on public-private partnerships, which will likely be key to growth in the coming years. Additional reforms are being implemented to address unemployment, attract foreign investment and create a better business environment.

This chapter includes interviews with Nizar Baraka, Minister of Economy and Finance; Chakib Benmoussa, President, Economic, Social and Environmental Council; and Ahmed Fassi-Fihri, Investment Promotion Manager, Moroccan Investment Development Agency.

Articles from this Chapter

Overview

A balancing act: Sticking to industrialisation plan despite stalling economy
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Over the course of 2012, growth in the Moroccan economy slowed, set back by a combination of unfavourable global economic trends, a volatile exchange rate, a hit to its primary sector, agriculture, and limited fiscal reform. Recession in the eurozone, Morocco’s primary trade partner, has made for weaker demand of the kingdom’s exports, and persistently high prices for both oil and food on the global market have compounded the growing trade deficit. Nevertheless, prospects for the kingdom…

Analysis

Offshoring success: The country aims to maintain its lead in outsourced services
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With European businesses bent on reducing expenses in cost-sensitive sectors, Morocco is becoming a leading provider of offshoring services, especially for the French- and Spanish-speaking markets. The kingdom has now begun emphasising nearshoring – the relocation of customer-oriented services to neighbouring countries – to spur growth and job creation. ON TOP: Morocco was named 2012 “Offshoring Destination of the Year” by the European Outsourcing Association, validating the efforts…

Interview

OBG talks to Nizar Baraka, Minister of Economy and Finance
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Interview: Nizar Baraka How can Morocco’s export potential be better used? NIZAR BARAKA: The 2013 Finance Law introduces measures that should help boost exports. First of all, we need to accelerate the implementation of export-oriented sectoral strategies and expand support to other areas, like the pharmaceuticals, metallurgical and chemical industries. Another important aspect is to diversify our target markets. We want to reinforce our presence in Africa and speed up access to its markets,…

Interview

OBG talks to Chakib Benmoussa, President, Economic, Social and Environmental Council (CESE)
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Interview: Chakib Benmoussa How are labour rights protected, and what sort of flexibility is there in the labour code? CHAKIB BENMOUSSA: Morocco has a labour code that is quite detailed and that has gone through a lengthy evolution process. Although the code took some time to develop, it has now been agreed to by all stakeholders: unions, employers associations and the government. Today, the main issue revolves around the effectiveness of the labour code and criticism comes from various sides.…

Analysis

Doing business: A look at the local commercial environment
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Against a backdrop of global economic uncertainty, the Moroccan government is making every effort to attract investors to the country. The government’s domestic investment spending increased 2.5% in 2012 to Dh48.5bn (€4.3bn), according to the Ministry of Economy and Finance, despite a deepening budgetary deficit. However, a great emphasis is being placed on attracting foreign direct investment (FDI), particularly as capital inflows into the North Africa region slowed in 2012, following upheavals…

Interview

OBG talks to Ahmed Fassi-Fihri, Investment Promotion Manager, Moroccan Investment Development Agency
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Interview: Ahmed Fassi-Fihri Given the focus on low labour costs, how can the country maintain its competitive edge? AHMED FASSI-FIHRI: In staying competitive, Morocco does not want to rely only on labour costs, but also on other factors and comparative advantages that distinguish it from its competitors. For example, our position as a crossroads for global trade as well as our openness thanks to our many free trade agreements (FTAs), which makes our country an ideal platform for accessing markets…

Analysis

Up to standard: Working with the EU to harmonise laws and regulations
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In 2008 the EU upgraded its Association Agreement with Morocco to “advanced status”, granting the kingdom most of the commercial advantages of being part of the EU but without participation in the bloc’s political institutions. The kingdom now is undertaking the painstaking work of harmonising its laws and regulations with EU requirements, which should help further boost foreign direct investment (FDI) from Europe and increase trade volumes. By fixing the EU standard as its benchmark, the…

Analysis

Creative capitalisation: Private equity becomes an attractive alternative to traditional funding
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Among many industry players, private equity (PE) has rapidly developed as an alternate source of funding for corporations throughout Africa, especially in the Maghreb region – and Morocco is no exception. Initially dominated by development finance institutions (DFIs), the sector is attracting an increasing number of private funds, both foreign and domestic, thanks to the rapid growth of pension assets. While channels for divesting remain somewhat constrained, recovery in the equities market…

Analysis

Young and restless: The government aims to target a persistently high unemployment rate
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Official statistics place unemployment in Morocco at 9.1%. However, these measures do not take into account seasonal workers, those who have given up looking for work or the informal working economy, making it difficult to accurately gauge the employment situation. Nevertheless, seven out of every 10 households in Morocco say finding work is a preoccupation, according to a survey by the High Commission for Planning (Haut Commissariat au Plan, HCP). Global consultancy McKinsey & Company and…

Analysis

Fighting poverty: The long climb to social prosperity
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The Arab Spring that began in 2011 was a wake-up call to the ruling elites across the region of their failure to deliver upon social contracts with their people. While Morocco was spared the unrest seen in neighbouring countries, the government took heed of citizen’s call for better opportunities, and implemented a series of stop-gap measures and longer-term reforms. The protests of February 20, 2011 brought renewed focus in Morocco to making economic growth inclusive and increasing social…