Economy
From The Report: Morocco 2020
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Supported by a favourable geographic location between Africa and Europe, vast array of natural resources and improved business environment, Morocco’s economy has made important strides over the past decade. Investment in export-oriented manufacturing industries is gradually allowing the country to diversify its economic output. In hand with this, years of investment in infrastructure have strengthened transport and logistics links across the country, facilitating domestic and international trade. However, Morocco continues to face a number of economic challenges. Annual growth rates remain intrinsically linked to agricultural production. In addition, persistent unemployment rates, have prevented large segments of the population from joining the middle class, and subsequently spurred the emigration of qualified graduates and professionals abroad. Aiming to avoid economic stagnation and facing growing demand for more inclusive growth, the authorities have focused on leveraging the positive results achieved through past policies for a renovated growth model. This chapter contains interviews with Mohamed Benchaâboun, Minister of Economy and Finance; and Hicham Boudraa, Acting Managing Director, Moroccan Investment and Export Development Agency.

Articles from this Chapter

Overview

Forward march: Reforms are helping to establish a more encouraging business environment for diversification and inclusive growth
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Supported by its favourable geographic location between Africa and Europe, vast array of natural resources and improved business environment, Morocco’s economy has made important strides over the past decade. Investment in export-oriented manufacturing industries is gradually allowing the country to diversify its economic output. In hand with this, years of investment in infrastructure have strengthened transport and logistics links across the country, facilitating domestic and international…

Analysis

A helping hand: Better regulation and support measures improve the business climate for smaller companies
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As the benefits of Morocco’s long-term development plans have become evident, through sustained GDP growth rates and an increasingly liberalised economy, passing on those benefits to the country’s small and medium-sized enterprises (SMEs) has at times eluded policymakers. Although SMEs account for approximately 95% of all companies in the kingdom, they are often faced with a more challenging operating environment with limited access to finance. Although the majority of these firms have…

Interview

Up to date: Mohamed Benchaâboun, Minister of Economy and Finance, on opportunities for investors and small businesses
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Interview:Mohamed Benchaâboun Which sectors present opportunities for investors? MOHAMED BENCHAÂBOUN: Major reforms have been undertaken in the past two decades in combination with infrastructure projects. Integrated industrial platforms, business environment reforms and new training programmes have increased Morocco’s standing as an attractive investment destination and export platform on a global scale. This is evidenced by the establishment of a number of international groups and investors,…

Interview

Up to speed: Hicham Boudraa, Acting Managing Director, Moroccan Investment and Export Development Agency, on strengthening the investment climate
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Interview:Hicham Boudraa What is the benefit and significance of strengthening South-South relationships? HICHAM BOUDRAA: In recent years, especially after the 2008 economic crisis, Africa has become a coveted continent and a major strategic actor in the international scene. For nearly two decades, Africa has seen the largest economic growth in the world, averaging 5-6% per year across the continent. Investments have increased five-fold over 10 years, undisturbed by even the global recession.…

Analysis

Regional parity: Government plans for devolution are moving forward
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Morocco is advancing with its regionalisation plans, with the goal of enhancing the transfer of critical development funds to the less-developed regions of the kingdom in order to curb economic and social inequalities. Over the past two decades the kingdom has seen a strong level of economic development that has allowed it to diversify its economy, attract considerable volumes of foreign direct investment (FDI) as well as modernise its infrastructure. However, growth rates have since slowed…

Overview

Morocco CEO Survey:
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After registering an average expansion of 4.4% between 2000 and 2017, GDP growth slowed to 3% in 2018 and an estimated 2.6% in 2019, due to a 4% drop in the value added generated by the agriculture sector. Nevertheless, local business sentiment remains robust, with 78% of respondents to OBG’s fourth Morocco CEO Survey saying they have positive or very positive expectations of business conditions in the coming 12 months. Still, the future economic gains of the country will highly depend on the availability of skilled labour. Illustrating this understanding, nearly 75% of survey respondents selected education as the sector most in need…

Overview

What CEOs identify as the key: sector for economic growth
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Over the past decade, Morocco has endeavoured to strengthen and diversify its economic foundations, introducing a variety of strategic initiatives such as the Green Morocco Plan and the Industrial Acceleration Plan, and working to improve its business climate. The country ranked 53rd out of 190 countries in the World Bank’s “Doing Business 2020” report, up from 128th in 2010. The bank’s most recent report highlighted the online processing of construction permits, greater access to electricity and the introduction of e-payment for port fees as some of the main reforms that helped improve the country’s position. On the macroeconomic…

Overview

Minding the gap: The question of debt management is a key concern, particularly for countries with large external finance requirements
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Fiscal policy was at the top of the agenda at the IMF Annual Meeting held in Washington, DC in October 2019, which was attended by ministers of finance, central bank governors and private sector executives from around the world. The event provided an opportunity for member countries to issue statements outlining their opinions on the global economic landscape, which are of considerable interest to the international investment community. Expert Takes Representing the European Commission, vice-president Valdis Dombrovskis and commissioner Pierre Moscovici called for a more “supportive policy mix in the current juncture”, adding that…

Overview

Minding the gap: The question of debt management is a key concern, particularly for countries with large external finance requirements
OBG
plus

Fiscal policy was at the top of the agenda at the IMF Annual Meeting held in Washington, DC in October 2019, which was attended by ministers of finance, central bank governors and private sector executives from around the world. The event provided an opportunity for member countries to issue statements outlining their opinions on the global economic landscape, which are of considerable interest to the international investment community. Expert Takes Representing the European Commission, vice-president Valdis Dombrovskis and commissioner Pierre Moscovici called for a more “supportive policy mix in the current juncture”, adding that…