Country Strategy Paper - 2017-2021 KINGDOM OF MOROCCO - African Development ...
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Country Strategy Paper
2017-2021
KINGDOM OF MOROCCOCountry Strategy Paper 2017 - 2021 KINGDOM OF MOROCCO
Kingdom of Morocco: Country Strategy Paper 2017 - 2021
Table of contents
EXECUTIVE SUMMARY 11
I. INTRODUCTION 15
II. COUNTRY CONTEXT AND OUTLOOK 16
2.1 POLITICAL, ECONOMIC AND SOCIAL CONTEXT 16
2.2 STRATEGIC OPTIONS 23
2.3 AID COORDINATION/HARMONIZATION AND BANK’S 31
POSITIONING
III. BANK GROUP STRATEGY 35
3.1 RATIONALE FOR BANK’S INVOLVEMENT 35
3.2 EXPECTED OUTCOMES AND TARGETS 43
3.3 COUNTRY DIALOGUE 45
3.4 RISKS AND MITIGATION MEASURES 46
IV. CONCLUSION AND RECOMMENDATIONS 48
A f r i c a n D e v e l o p m e n t B a n k 4Kingdom of Morocco: Country Strategy Paper 2017 - 2021 Kingdom of Morocco: Country Strategy Paper 2017 - 2021
ANNEXES FIGURES
ANNEX 1: CRITERIA FOR SELECTING COUNTRY STRATEGY PAPER (CSP) FIGURE 1: FISCAL AND EXTERNAL BALANCES AS % OF GDP, 2012-2016
PILLARS AND PROJECTS FIGURE 2: CONTRIBUTION TO THE GROWTH OF KEY SECTORS OF THE
ANNEX 2: LOGICAL FRAMEWORK MATRIX ECONOMY
ANNEX 3: PIPELINE OF PROJECTS FIGURE 3: INFLATION AND OFFICIAL INTEREST RATE IN %, 2012-2016
ANNEX 4: TECHNICAL ASSISTANCE AND ECONOMIC AND SECTOR WORK FIGURE 4: DEBT AND FOREIGN EXCHANGE RESERVES, 2010-2016
PROGRAMME FIGURE 5: 2004 & 2014 GOVERNANCE INDICATORS
ANNEX 5: SECTOR DISTRIBUTION OF PARTNER SUPPORT AND SYNERGIES FIGURE 6: BUSINESS ENVIRONMENT: COMPARATIVE RANKING OF 183
ANNEX 6: MAIN OBJECTIVES OF MOROCCO’S KEY STRATEGIES COUNTRIES
ANNEX 7: ECONOMIC AND SECTOR WORK USED IN DRAFTING THE CSP FIGURE 7: GCI 2010-2011 AND 2015-2016 RANKINGS
ANNEX 8: 2012-2016 CSP COMPLETION REPORT AND PORTFOLIO PERFORMANCE
REVIEW (2015)
ANNEX 9: SUMMARY – COUNTRY FINANCING PARAMETERS - MOROCCO (2015)
ANNEX 10: CFRA SUMMARY – 2016 TABLES
ANNEX 11: ENTITIES CONTACTED DURING THE MISSIONS AND WORKSHOPS
ANNEX 12: EVALUATION OF BANK STRATEGIES AND PROGRAMMES IN
TABLE 1: DEVELOPMENT SUPPORT (PARTNERS AND SECTORS) (MIN END-
MOROCCO, 2004-2014
MARCH 2016)
ANNEX 13: ACTION MATRIX FOLLOWING THE VISIT OF THE AFDB PRESIDENT
TABLE 2: JUSTIFICATION OF THE BANK'S INTERVENTION FRAMEWORK
IN JULY 2016
2017 - 2021
ANNEX 14: MOROCCO’S PROGRESS TOWARDS ACHIEVING THE MDGS
ANNEX 15: MOROCCAN DEBT SUSTAINABILITY ANALYSIS
ANNEX 16: BANK PORTFOLIO IN MOROCCO
ANNEX 17: SOME CHARACTERISTICS OF THE MOROCCAN PRIVATE SECTOR
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LIST OF ABREVIATIONS IMF International Monetary Fund
Inh. Inhabitant
AEO African Economic Outlook IPCC Intergovernmental Panel on Climate Change
AFD French Development Fund IsDB Islamic Development Bank
AfDB African Development Bank JICA Japanese International Cooperation Agency
AMU Arab Maghreb Union JYAS Jobs for Youth in Africa Strategy
APA Adaptation of African Agriculture KfW Kreditanstalt für Wiederaufbau
AREI Africa Renewable Energy Initiative MAD Moroccan Dirham
BAM Bank Al-Maghrib (the Central Bank) MAD billion Billion Moroccan Dirhams
CGEM General Confederation of Enterprises in Morocco COMA Morocco Field Office (of the AfDB)
CID Centre for International Development MCC Millennium Challenge Corporation
CODE Committee on Development Effectiveness MEMEE Ministry of Energy, Mines, Water Resources and Environment
COP 21 Paris Climate Change Conference (2015) ME Ministry of Environment
COP 22 Marrakesh Climate Change Conference (2016) MEAS Ministry of Employment and Social Affairs
CPIA Country Policy and Institutional Assessment MEF Ministry of Economy and Finance
CPW Construction and Public Works, MIC TAF Middle-Income Country Technical Assistance Fund
DAT Directorate for Territorial Development MW Mega Watt
EBRD European Bank for Reconstruction and Development OCP Moroccan Phosphates Authority
EIB European Investment Bank OFSD Financial Sector Development Department
EU European Union OITC Transport, Information and Communication Technologies and
EUR billion Billion Euros Urban Development Department
ESW Economic and sector work ONCF National Railways Authority
FDI Foreign direct investment ONEC Energy, Environment and Climate Change Department
FFCO Financial Control Department (AfDB) ONEE National Electricity and Water Authority
GCI Global Competitiveness Index ORPF Procurements and Fiduciary Services Department
GDP Gross domestic product OSAN Agriculture & Agro-industry Department
GEF Global Environment Fund OSGE Governance and Financial Management Department
GoM Government of Morocco OSHD Human Development Department
GPP Main Group of Partners OWAS Water and Sanitation Department
Ha. hectare PADESFI Financial Sector Development Support Programme
HCP High Commission for Planning PEFA Public Expenditure and Financial Accountability
IBRD International Bank for Reconstruction and Development PPIP Portfolio Performance Improvement Plan
BDEV Independent Development Evaluation of the African Develop- PPP Public-Private Partnerships
ment Bank PSD Country Strategy Paper
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QDF Qatar Development Fund CURRENCY EQUIVALENTS
SFD Saudi Fund for Development (January 2017)
SME Small and medium-sized enterprises
UA 1 = MAD 13,5724
SNDD National Sustainable Development Strategy
UA 1 = USD 1,34433
SNDR National Rural Development Strategy
SNFP National Vocational Training Strategy UA 1 = EUR 1,27534
TGR General Treasury of the Kingdom
TGV high speed train
UA billion Billion units of account
UN United Nations
FISCAL YEAR
UNCTAD United Nations Conference on Trade and Development
1 January - 31 December
UNDP United Nations Development Programme
UNECA United Nations Economic Commission for Africa
UNEP United Nations Environment Programme
UNFCC United Nations Framework Convention on Climate Change
UNICEF United Nations Children’s Fund
UNTCAD United Nations Conference on Trade and Development
USA United States of America
USD United States Dollars
USD billion Billion US dollars
VSE Very small enterprises
WB World Bank
WEF World Economic Forum
WFP World Food Programme
WGI World Governance Indicators
WTO World Trade Organization
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strategies. For instance, the 2017 finance law of the Bank in 2016, comprising 35 operations
includes four development pillars, namely: (i) for a total commitment of approximately UA
Executive Summary the acceleration of economic transformation
through industrialization and exports; (ii)
2 billion (USD 2.5 billion).
strengthening of competitiveness and 8. The Bank has prepared the completion
promotion of private investment; (iii) report of its 2012-2016 strategy and
improvement of human resources and the its evaluation department (BDEV) has
1. While several countries in North Africa 3. However, certain persistent challenges reduction of disparities; and (iv) institution- assessed the impact of Bank-funded
are experiencing instability and security make it difficult to achieve more resilient building and good governance. operations during the 2004-2014 period.
challenges, Morocco is making its transition and inclusive growth. Accelerating the These activities yielded a number of lessons
by combining reforms with multiparty structural transformation of the economy 6. Hence, the Kingdom has developed that would be factored into the design of
governance. The constitution was revised remains predicated on continuous improvement numerous detailed and quantified a new intervention strategy. The lessons
by referendum in July 2011 to consolidate of the business environment (institutional, sector policies. For example, in the area suggest the need to: (i) continue supporting
multiparty democracy and individual freedoms. regulatory and infrastructural frameworks), of competitiveness and industrialization, the authorities in the transformation of the
The parliamentary elections of October 2016 access to funding and the quality of human Morocco launched the Logistics Acceleration Moroccan economic model; (ii) match
once again yielded victory for the Justice and capital. There are still a number of outstanding Plan in 2014 and the National Industrial the budget support and investment projects
Development Party, and even if there is a challenges related to employment and social Acceleration Plan for 2014-2020. In terms of under each pillar with a view to developing
change in the ruling coalition, this victory inequalities. With regard to employment, the employment and human capital training, synergies between public policies and
should guarantee continuity in the work of the youth, and especially young graduates, are Morocco adopted the 2015-2025 Employ- investment; (iii) promote a programmatic
new Government. most severely affected by unemployment. ment Strategy and the 2015-2021 National approach to budget support, which
Rural employment is also less resilient and Vocational Training Strategy in 2015. The should be possible from 2018 following the
2. Thanks to Government’s fiscal consoli- often affected by climate change. Further- Green Morocco Plan, the National Rural adoption of the new Organic Law on
dation efforts, Morocco significantly more, significant challenges exist in terms of Development Strategy and the Development the Finance Act; (iv) continue developing
improved its macroeconomic situation sustainable development of the economic Fund for Rural and Mountainous Areas are an investment programme and a logical
during the 2013-2016 period. From the and social model in the energy and water flagship mechanisms for reducing inequalities framework for a three-year period as was
public finance standpoint, it recorded a net sectors. in rural and disadvantaged areas though job the practice in the previous CSP; and (v)
reduction in its budget deficit (from -7.3% of creation. Lastly, the Government’s objective continue the sector assessment exercises
GDP in 2012 to -3.9% in 2016 and -3% in 4. Since 2004, the priorities announced in is to ensure that renewable energy accounts initiated by the Bank (BDEV) to monitor
2017). These efforts also led to a reduction in the King's statements and in the Government for 42% of the electricity output by 2020. the impact of reforms and investments. As
the current account deficit from -9.2% of programme have replaced the economic regards instruments, the CSP 2012-2016
GDP in 2012 to -3,8% in 2016 (-3,4% in and social development plan, and serve 7. A founding member of the African completion report and the BDEV evaluation
2017). Foreign exchange reserves rose from as the policy framework. These priorities Development Bank, the Kingdom of specifically recommend the acceleration of
less than 4 months of imports in 2013 to over have been transformed into development Morocco had the largest active portfolio support to non-sovereign projects.
7 months at the end of 2016. pillars in subsequent finance laws and sector
11 A f r i c a n D e v e l o p m e n t B a n k A f r i c a n D e v e l o p m e n t B a n k 12Kingdom of Morocco: Country Strategy Paper 2017 - 2021 Kingdom of Morocco: Country Strategy Paper 2017 - 2021
9. This country strategy paper covers the supported within the training system and 13. As regards instruments, the Bank will 2017-2021 period, the Bank will consider
2017-2021 period and is intended to help through sustainable use of water resources in accelerate its support to non-sovereign financing budget support as well as public
the country address its challenges through the agricultural system. Therefore, Pillar I will projects by adopting innovative approaches and private investment operations, which will
two intervention pillars: (i) support for focus on climate change mitigation, paving in which it has greater additionality (SMEs be accompanied by technical assistance
green industrialization by SMEs and the the way for Pillar II to lay more emphasis on and export sector). Furthermore, over the and targeted economic and sector work.
export sector; and (ii) Improving the quality adaptation actions.
of life through jobs for youth, women and
in rural areas. Under the first pillar, it is 11. Furthermore, the Bank will seek to
proposed that the focus be placed on support the development of relations
operations that eliminate the constraints between Morocco and Africa. This will start
affecting the development of SMEs and with the acceleration of trade and investment,
the export sector, with a view to boosting the financing of private sector projects and
industrialization. Meanwhile, industrialization specific trade infrastructure. It will also entail
should be made green by promoting the sharing of the experiences and expertise that
development of renewable energy. Under Morocco has been able to develop.
the second pillar, it is proposed that focus be
placed on jobs for the most vulnerable 12. Hence, the new CSP 2017-2021
groups, including the youth, women and in favours the principles of alignment on
rural areas. This pillar will especially support Government priorities, consolidation of the
entrepreneurship, adaptation of training gains from previous operations, comple-
to employment and sustainability of jobs mentarity with other partners and the
created by the agricultural sector. Hence, Bank’s strategic framework. The CSP is
there are very strong synergies in employ- structured around two of the Bank's High 5s:
ment, between the first pillar, which will “Industrialize Africa” and “Improve the quality
address supply through development of the of life for the people of Africa” as its main
industrial fabric and the second pillar, which intervention pillars. Nevertheless, the projects
will focus on satisfying the demand from will also respond selectively to the other three
young graduates and the development of priorities of the Bank (“Integrate Africa”, “Light
self-employment and entrepreneurship. up and Power Africa” and “Feed Africa”) by
speeding up the attainment of objectives
10. The promotion of green growth is the under the first two priorities. The Bank's actions
crosscutting theme of this strategy. Under will facilitate the attainment of two objectives
Pillar 1, green industrialization will be promoted of the Ten-Year Strategy (2013-2022) - inclusive
through renewable energy development. and green growth - and one objective of the
Under Pillar II, green industries will be regional integration strategy for North Africa.
13 A f r i c a n D e v e l o p m e n t B a n k A f r i c a n D e v e l o p m e n t B a n k 14Kingdom of Morocco: Country Strategy Paper 2017 - 2021 Kingdom of Morocco: Country Strategy Paper 2017 - 2021
I. INTRODUCTION II. COUNTRY CONTEXT AND OUTLOOK1
1.1 A founding member of the Bank, the five priorities (“High 5s”) and those of the 2.1 POLITICAL, ECONOMIC this victory should guarantee continuity in the
Kingdom of Morocco has benefitted from Moroccan Government. Accelerating the AND SOCIAL CONTEXT work of the new Government (PEA, 2016).
AfDB’s sustained support since 1970. In 2016, industrialization of the Moroccan economy
the Bank's portfolio in Morocco comprised and improving the living conditions of Moroccans A) POLITICAL CONTEXT 2.1.2 The September 2015 regional and
35 operations, worth a total commitment of by facilitating their access to jobs are some municipal elections were an important
approximately UA 2 billion (USD 2.5 billion). of Government’s priority actions and also 2.1.1 While several countries in North step towards implementation of the
constitute two of AfDB’s High 5s. Africa are experiencing instability and decentralisation process enshrined in the
1.2 CSP 2012-2016 was approved by the security challenges, Morocco is making 2011 Constitution. These elections enshrine
Board of Directors in April 2012 and helped 1.4 While building on the previous strat- its institutional, economic and social the new organic laws related to regions,
to provide Morocco with UA 2.2 billion. It egy, this CSP takes account of the lessons transition by combining reforms with prefectures and municipalities. These laws
was the subject of a mid-term review in 2014 drawn by BDEV following the analysis of the multiparty governance. The constitution empower citizens to be more involved in the
that confirmed and fine-tuned the relevance of Bank's action during the 2004-2014 period was revised by referendum in July 2011 to management of local affairs. The regions
the intervention pillars, namely: (i) governance; and from the conclusions of the CSP 2012- consolidate multiparty democracy and demarcated in March 2015 and other local
and (ii) infrastructure. The CSP completion 2016 completion report. This CSP was individual freedoms. The November 2011 government authorities are endowed with
report was drafted to guide the preparation of prepared through a participatory process that legislative elections yielded victory for the own financial resources and State allocations
CSP 2017-2021 and was presented to CODE involved the authorities, civil society, partners Justice and Development Party, whose (PEA, 2016).
in September and November 2016. Two pillars and the private sector. Secretary General was appointed to head the
were identified as potential intervention areas Government. A first coalition government B) ECONOMIC CONTEXT
for the Bank: (i) support for green industrialization 1.5 The Country Strategy Paper com- was formed in January 2012 and a second
by SMEs and the export sector; and (ii) Improving prises four sections. This introduction is in October 2013. The authorities were tasked 2.1.3 From 2005, the Kingdom of Morocco
the quality of life through jobs for youth, women followed by Section 2, which presents the with implementing the new provisions of the redesigned its development model and
and in rural areas. country context. Section 3 analyses AfDB’s 2011 Constitution. The October 2016 parlia- embarked on an ambitious reform
strategic options, while Section 4 presents mentary elections once again yielded victory programme. In 2005, the authorities
1.3 This CSP, which covers the 2017-2021 the conclusions and recommendations for for the Justice and Development Party, and launched the Emergency Plan, followed by
period, is consistent with the Bank’s top senior management. even if there is a change in the ruling coalition, the 2009-2015 National Emergency Plan for
1
The quotations in parenthesis refer to the studies used to draft this document. The list of the studies is given as
Annex 7.
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Industrial Emergence. These industrial strate- 2.1.5 During the 2013-2016 period, months at the end of 2015. This improve- Strategy [which seeks to increase the share
gies aimed at developing new professions Morocco significantly improved its ment also reflects substantial inflows arising of industry in GDP from 14% to 23% by
(aerospace and automotive sectors) while macroeconomic situation, thanks to from loans to public institutions and FDI. 2020] (GoM, 2014) are beginning to bear
supporting traditional sectors such as textiles Government’s fiscal consolidation efforts fruit. The export sector experienced marked
and agro-industry. They are expected to (Figure 1). From the public finance stand- recovery in 2015 thanks to the new profes-
Figure 1: Fiscal and External balances
contribute to reducing the trade deficit by point, it recorded a net reduction of its as % of GDP, 2012-2017 sions of Morocco (automobile, electronics,
50% and increasing the GDP by 1.6% per year. budget deficit (from -7.3% of GDP in 2012 (MEF & authors) aerospace sectors). Accordingly, the auto-
However, their implementation has been to -3.9% for 2016 & -3% in 2017 ) following 2012 2013 2014 2015 2016 (e) 2017 (p)
mobile sector became the country's leading
affected by global economic crises since cuts in public spending, including operating export sector with an export increase of
2007. From 2008 to 2012, Morocco imple- expenditure which declined from 29.9% to -2.7 -2.4 20.7% in 2015 (MEF, 2016). This trend is
-3.9 -3.8 -3.0
mented a counter-cyclical fiscal policy to: (i) 26.4% of GDP in 2015. This stemmed from: -4.9 -4.3 expected to continue, since several corpo-
-5.5 -5.7
revive the economy in a context of interna- (i) a reduction of the budget allocated to sub- rations have decided to establish or expand
-7.3 -7.3
tional financial crisis and high cost of raw sidies (particularly energy subsidies) from -9.2 their presence in the country in recent years
materials (including energy); and (ii) address 6.2% of GDP in 2012 to 1.4% in 2015; (ii) the Budget deficit (% GDP) (PEA, 2016). However, acceleration of the
the social demands of 2011. This policy, decline in wage costs by approximately Current account balance (% GDP) structural transformation of the economy
which helped to sustain growth, resulted in 0.4% of GDP; and (iii) the cancellation of remains dependent on continuous improve-
the deterioration of macroeconomic indicators non-executed investments. These measures 2.1.7 The country recorded a 3.7% average ment of the business climate, access to funding
(budget deficit of -7.3% in 2012) and in fact made it possible to raise additional revenue, annual growth rate over the 2012-2015 and the quality of human capital (AfDB, GoM,
reached its limits (AfDB, GoM, MCC, 2015). streamline State spending and improve period but the projected growth rate for MCC, 2015 - see 3.2).
investment efficiency. Thanks to these efforts, 2016 was only 1.8% (it is however expected
• Macroeconomic Developments the country received a second Precautionary to be 3,7% in 2017). This decline is attributable
and Liquidity Line from the IMF in 2014 and to a poor agricultural (cereal) harvest due to Figure 2: Contribution to the Growth
2.1.4 Consequently, since 2012, Morocco a third in 2016 (IMF, 2016; IMF, 2015). bad weather (agriculture remains a strategic of Key Sector of the Economy
(MEF)
has embarked on a policy of correcting its sector for the Moroccan economy with value-
25.0% 4.7 6
macroeconomic balances. The Government 2.1.6 These efforts also slashed the added amounting to 15% of GDP in 2015) 4.5
15.0% 4
set two objectives for the 2012-2017 period: current account deficit from 9.2% of GDP (Figure 2). This also highlights the need to 2.4
1.8
5.0% 2
(i) reduce operating costs and improve the in 2012 to -0.7% in 2016. This primarily boost the country’s industrialization and
-5.0% 2013 2014 2015 2016 (p) 0
efficiency of the State’s social action in order stemmed from a decline in imports (-3.5%) agricultural sector resilience (PEA, 2016).
to create the necessary fiscal space; and (ii) as Morocco benefitted from the fall in oil In this regard, the Industrial Development Agriculture Mining Indust. Transformation Indust.
continue with key investments and reforms prices. However, it also resulted from the Emergency Plan launched in 2008 (GoM, Trade Transport Post and Telecoms
with a view to improving the business climate export sector development policy. Foreign 2008) as well as the 2014 New Industrial GDP Growth in%
and triggering a transformation of the exchange reserves rose from less than 4
economic model. months of imports in 2013 to over 6.5
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favourable because 75% of the debt stock is from 56 to 48 between 2004 and 2014 (WB, Law on the Finance Act, which became
domestic and thus insensitive to external 2015). Similarly, according to the Global effective in 2016, will usher in better planning
Figure 3: Inflation and Official Interest
Rate in % 2012-2017 shocks. Besides, the efforts made in recent Integrity-2016 report, public management and transparency in the use of public resources.
(MEF & authors) years in terms of fiscal consolidation and active has been strengthened with a score of Lastly, a PEFA conducted in 2015-2016 with
debt management have yielded concrete 63/100 (43 in 2013). the support of the EU, AfDB and the World
3.0 3.0 2.8 2.5 2.3 results: the State has continued to finance Bank, is being validated and will help to guide
1.9 2.1
1.3 1.6 1.6 itself at relatively low rates and to extend the future reforms.
0.4 maturity of the debt. The average cost of Figure 5: 2004 & 2014 Governance
the debt has decreased (from 5.1% in 2010 Indicators (WGI) • Business Environment and Competitiveness
2012 2013 2014 2015 2016 (e) 2017 (p)
to 4.4% in 2014), while its maturity has 50.48
Corruption control 55.12
Inflation in % Federal funds rates increased (from 5.7 to 6.5 years). Rule of law 56.25 2.1.12 With regard to the business
53.59
Regulatory quality 52.4
46.57
environment, Morocco recorded a significant
Government effectiveness 48.08
30.1
56.1 improvement in its Doing Business ranking,
Political stability and absence of violence 35.58
2.1.8 Morocco has been implementing a Figure 4: Debt and Foreign Exchange 28.08 from 130th in 2009 to 75th in 2016 (Figure 6).
Voice and accountability 32.21
Reserves, 2010-2016 (BAM)
cautious monetary policy since 2011. Over 0 10 20 30 40 50 60 It made remarkable progress in: registering
the 2012-2016 period, inflation remained low property; reducing the number of procedures
70.0 7.2 7.0 8.0 2014 2004
at 1.3% on average, despite the phasing out 60.0 5.1 5.8 7.0 for starting a business (from 6 to 4); and reducing
50.0 4.2 4.6 6.0
4.1 5.0
40.0 4.0
of energy subsidies in January 2014 (Figure 30.0 3.0 the cost of these procedures as a percentage
20.0 2.0
3). The Central Bank has sought to sustain 10.0 1.0 2.2.11 The decree on public procurement of income per capita (from 15.7% to 9%).
- -
2010 2011 2012 2013 2014 2015 2016 (p)
demand, which is the main engine of and the law governing free pricing and However, efforts still have to be made as
economic growth. In a context characterized competition, approved in 2014, helped to regards: (i) getting credit (109th); and (ii) protecting
Total debt (as % of GDP)
by low inflation, it decided on three occasions improve convergence with international minority investors (105th) (WB, 2015b).
Foreign exchange reserves in import months
to lower its key lending rate from 3% to regulations on governance, simplification
2.25% (its lowest historical level) between of procedures and dematerialization of
2014 and 2016 (BAM, 2016; IMF 2016). • Gouvernance the public procurement process. Besides, Figure 6: Business Environment:
Morocco launched its corruption control Comparative Ranking of 183 Countries
(Doing Business)
2.1.9 Treasury debt amounted to 63.4% 2.1.10 Morocco made significant progress strategy in May 2016, in addition to the
of GDP in 2016, but remains sustainable in corruption control, governance efficiency initiatives established in recent years, including: Protecting investors
in the medium term (IMF Article IV, February and accountability between 2004 and (i) the establishment a toll-free number for Getting credit
Trading across borders
2016) (Figure 4 - Appendix 15). Although 2014 (figure 5). In 2015, its overall CPIA reporting acts of corruption; (ii) presentation Starting a business
Paying taxes
the debt has continued its upward trend score was 4.09, ranking it 13th on the Continent by the Court of Auditors, of records before Enforcing contracts
Registering property
begun in 2010 (63.2% of GDP in 2014, (and in the second quintile). According to the the justice system, highlighting this practice; Dealing with construction permits
Getting electricity
against 49% in 2010), it is expected to decline World Bank governance indicators, the country and (iii) the proposal of a new law governing
0 20 40 60 80 100 120
from 2017 (from 65.1% in 2016 to 62.1% in recorded a significant improvement in the the National Authority for Probity and Corruption
2019) (IMF, 2016). The debt structure remains efficiency of public action, with its score moving Prevention and Control. The new Organic 2015 2016
19 A f r i c a n D e v e l o p m e n t B a n k A f r i c a n D e v e l o p m e n t B a n k 20Kingdom of Morocco: Country Strategy Paper 2017 - 2021 Kingdom of Morocco: Country Strategy Paper 2017 - 2021
2.1.13 Morocco improved its global • Financial Sector • Trade and Regional Integration C) SOCIAL SITUATION
competitiveness rankings by 14 spots
between 2011 and 2016, moving from the 2.1.15 Since the 2000s, Morocco has 2.1.17 In terms economic integration, • Poverty and Access to Basic Services
98th to 84th position (figure 7). It made achieved significant progress in modernizing Morocco continued its policy of economic
remarkable progress particularly in the quality its financial sector. Its ranking improved openness and liberalization (AfDB, 2016a). 2.1.19 Morocco has made major efforts
th th
of public institutions (from 66 to 47 ), infra- by 21 spots, in the area of financial market Accordingly, the authorities have promoted to address its social challenges (AfDB,
structure (from 71th to 55th), and health and development within a decade, to 70th in exports and liberalized imports by eliminating 2016c). In particular, major actions were
th th
primary education (from 94 to 77 ) (WEF, 2016 (WEF, 2015). The legal and institutional the lists of prohibited or restricted goods, conducted to ensure greater access to basic
2015a). Labour market effectiveness, higher framework governing the financial environment and reducing customs duties. Furthermore, services in all regions of the country (AfDB,
education and training remain areas in which benefitted from greater sector liberalization Morocco is a founding member of WTO and 2014b). Basic medical coverage and primary
Morocco continues to have low rankings thanks to AfDB reform support, among has ratified multiple free trade agreements education have been generalized. Moreover,
(AfDB, 2014a). others. (AfDB, 2016). This policy of openness has the drinking water access rate increased from
enabled the country to improve its trade 81% in 2006 to 100% in urban areas and
th
2.1.14 Morocco's attractiveness in terms 2.1.16 The Moroccan banking sector is facilitation index ranking from 75 in 2010 94.5% in rural areas. The electrification rate
of FDI has improved. In turn, this has led one of the best in Africa and plans to be a to 44th in 2014 (UNCTAD, 2016). Moreover, increased from 18% in 1996 to 99% in 2015
to an improvement in the current account continental leader, with three of its largest Morocco's economic openness rate rose (97% in rural areas).
balance. In 2014, FDI flows declined banks established in over 20 African from 51.2% in 2000 to 62.1% in 2014.
throughout the North African region but countries (IMF, 2015b; IMF, 2015c, AfDB, 2.1.20 Thanks to these efforts, Morocco
increased by 9% in Morocco. These flows 2013). In 2015, the banking sector reported 2.1.18 Although it is very commercially has made significant progress in poverty
came from France (leading investor in a net result of MAD 1.103 billion or 119 % of anchored to the EU, Morocco has reduction. It is one of the countries that
Morocco with 37% of total FDI), United Arab GDP. It represents 2/3 of the financial system strengthened its economic and trade made the most progress in attaining the
Emirates (8.6%), Switzerland (7%) and United and is dominated by five banks that hold cooperation with the rest of Africa. This MDGs (annex 14). The national poverty rate
Kingdom (6.5%) (UNCTAD, 2015). 79.5% of all sector assets. The financial strategy is reflected in the Royal tours of dropped sharply from 15.3% to 4.2% in 2014
base of Moroccan banks continued to be 2014, 2015 and 2016, and the full commitment (HCP, 2015a). However, some spatial disparities
strengthened in 2015, showing an average of the entire private sector. To support in access to basic services persist. Rural
solvency ratio of 13.9% and a capital ratio of this partnership, economic relations between women do not receive the same assistance
Figure 7: GCI 2010-2011and 2015-2016
Ranking 11.5%, calculated for the first time according Morocco and other African countries are in childbirth as women living in urban areas
to Basel-3 rules. The return on equity governed by more than 500 cooperation (55% compared to 91%). Access to drinking
Labour market efficiency 130
102 123
Higher education and training
81
106 amounted to 10.2%, while the return on agreements (AfDB, 2016 b). Morocco is the water and education also remains unequal in
Innovation 98
Global competitiveness index 94
Technological maturity 75 84
78 94
assets stood at 1% in 2015. Due to the second African investor on the continent with the country.
Health and primary education 77
Financial market development 70
74
77
economic downturn stemming from a sluggish EUR 1.5 billion invested over the last 5 years.
Goods market efficiency 31 64
Macroeconomic environment
Infrastructure
58
55
71 international economy especially in sectors Even more, the share of Moroccan exports to • Unemployment, Education and Gender
Market size 53
57
Institutions 47
66
like real estate, outstanding debts continued to sub-Saharan Africa rose from 3% in 2008 to
0 20 40 60 80 100 120 140
rise to stand at 7.4% by end-2015. However, 8% in 2014. In comparison, exports to the 2.1.21 However, there are still some
2010-2011 2015-2016 provisions have remained adequate. AMU remain low (3% in 2014) (AfDB, 2016b; persistent challenges related to employ-
AfDB - AMU, 2016). ment and social inequality. With regard to
21 A f r i c a n D e v e l o p m e n t B a n k A f r i c a n D e v e l o p m e n t B a n k 22Kingdom of Morocco: Country Strategy Paper 2017 - 2021 Kingdom of Morocco: Country Strategy Paper 2017 - 2021
employment, the youth, and especially young 99.1%. The implementation of gender-sensitive laws. In January 2012, the Government underpinned by the search for new partners.
graduates, are most severely affected by budgeting by the Ministry of Finance is a key elected in 2011 adopted four main pillars In this regard, Morocco aspires to become
unemployment. In 2016, the unemployment step in this process (UN-women, 2016). related to: (i) performance of the State’s a hub for trade with the rest of Africa.
rate among the youth aged 15-24 years social action; (ii) education, vocational training Investment planning and performance
reached 23% compared to 21% in 2015, and 2.1.24 Notable progress has been made and research; (iii) agricultural sector modern- targets are defined within programme
that of young higher education graduates was in women’s employment. For example, the ization; and (iv) economic and financial contracts formulated between the State
24% compared to 22% in 2015 (HCP, 2016). proportion of women in public administration governance. During the October 2013 formation and public corporations (ONEE for water
increased by 21% between 2007 and 2013, of the second government, special emphasis and electricity, ONCF for rail transport),
2.1.22 The authorities have kept up their to stand at 38.5%. However, women are was laid on improvement of the business unions and professional sectors. For the
commitment to implement reforms to mainly employed in certain ministries such environment and the competitiveness of the agricultural sector, boosting competitiveness
improve the quality of human capital and as health and women's affairs where they national industrial fabric. The 2017 finance bill is at the heart of the Green Morocco Plan.
make labour market regulations more constitute over 50% of the staff. includes four development pillars, namely: (i) A national strategy to develop the food
flexible. In 2015, Morocco launched higher acceleration of economic transformation industry was launched and recently
education and vocational training strategies, 2.1.25 However, much remains to be done through industrialization and exports; (ii) completed.
respectively referred to as the 2030 Education (see paragraph 2.2.9). Gender disparities strengthening of competitiveness and
Vision and the 2015-2021 Vocational Training remain glaring within the legislation. According promotion of private investments; (iii) • As regards employment and training of
Strategy. Moreover, the net primary enrolment to the report "Women, Business and the Law improvement of human resources and human capital, Morocco adopted the
ratio rose from 90.1% to 99.6% between 2016" (WB, 2016), Morocco is one of the 155 reduction of disparities; and (iv) institution 2015-2025 Employment Strategy and
2008 and 2013. In rural areas, it grew from countries (out of 173) that have at least a law building and good governance. the 2015-2021 National Vocational Training
84.5% to 97.9%. that prevents women from working freely. The Strategy in 2015. The employment strategy
report notes that married women cannot be 2.2.2 To address these priorities, the is aimed at increasing the labour force by
2.1.23 As regards gender inequality, the family heads, which is discriminatory to them Kingdom has implemented many detailed 17% and slashing unemployment to
new 2011 Moroccan Constitution “under- in terms of tax provisions. and quantified sector policies (Annex 6). 3.9% by 2025. Furthermore, the higher
takes to combat and banish all discrimi- education strategy (called Education
nation against anyone based on gender”. 2.2 STRATEGIC OPTIONS • With regard to competitiveness and Vision 2030) is being developed. These
According to the Africa Gender Equality Index industrialization, Morocco in 2014 strategies must address the issues
(AfDB, 2015-b), the country has made efforts A) COUNTRY STRATEGIC FRAMEWORK launched the Logistics Acceleration Plan of matching training to employment,
in terms of human development (education of and the National Industrial Acceleration entrepreneurship and combating inequities
the girl child, maternal mortality) and is 2.2.1 Since 2004, the priorities announced Plan for 2014-2020 to replace the National in skills development. On the social front,
ranked third in Africa. Under the “Ikram” in the King's statements and in the Pact for Industrial Emergence launched a State social action strategy is being
Gender Equality Programme (2012-2016), Government programme have replaced in 2008, which enabled the country to developed.
the Government is committed to bridging the the economic and social development develop new industries such as aeronautics
gap between men and women. Indicators plan, and serve as the policy framework. or car manufacturing, referred to as “the • As regards territorial development,
reflect the efforts made, with the net school These priorities have been transformed new global professions of Morocco”. The the Green Morocco Plan, the National
enrolment ratio for girls rising from 88% to into development pillars within the finance implementation of these strategies is Rural Development Strategy and the
23 A f r i c a n D e v e l o p m e n t B a n k A f r i c a n D e v e l o p m e n t B a n k 24Kingdom of Morocco: Country Strategy Paper 2017 - 2021 Kingdom of Morocco: Country Strategy Paper 2017 - 2021
Development Fund for Rural and SMEs) is one of the factors that negatively support to women entrepreneurs constitute surface area remains low (less than 18% of
Mountainous Areas are the flagship affect economic growth and the employability major obstacles (AfDB, 2015c). utilized agricultural land), it was able to yield
mechanisms for reducing inequalities in of young graduates. However, the relatively good performance and preserve jobs in a
rural and disadvantaged areas high rate of integration in some sectors (80% 2.2.5 Although major efforts are being context of poor rainfall in 2016. Sustainable
integration rate in the construction sector) deployed, spatial inequality in terms of water resources development is essential to
B) CHALLENGES AND WEAKNESSES shows that vocational training could satisfy access to quality employment remains the improvement of rural living conditions.
the demand of investors if it is well targeted. one of Morocco’s weaknesses. Notwith-
► Reduce Disparities Related to standing the higher labour force participation 2.2.6 Reducing the vulnerability of self-
Employment 2.2.4 Access to employment and economic ratio in rural areas (56.8% in 2015) compared employed and/or informal sector workers
opportunities for women is also a major to urban areas (41.5%), rural employment is must remain a priority. Self-employment
2.2.3 As indicated above, the youth challenge, with less than one out of fragile and often remunerated poorly or not and entrepreneurship develop mainly in the
unemployment rate is particularly high four women in the labour force actively at all. This applies to 40% of rural jobs in informal sector, with 80% of workers not
(20.8% in 2015 within the 15-24 years’ age employed. Women are employed in sectors 2013 compared to 4.1% of urban jobs covered by a social security scheme. In
bracket), especially among higher education that rely on low-skilled labour (agriculture, (MEAS, 2014). Thus, poverty remains a rural 2012, 10% of workers were poor, 64% were
graduates (24.4%). Although total unem- textiles) and / or offer low wages (hotels). Their phenomenon with a rate of 8.9% compared working without a contract, especially in the
ployment grew from 8.7% to 9.7% between work is characterized by vulnerability: mainly to 1.1% in urban areas (HCP, 2015 b). private sector (70%), and 53% were working
2012 and 2015, it remains relatively low. Even in the informal sector, without social security Moreover, rural employment is also highly over 48 hours per week (ME, 2014). Approx-
more problematic is the fact that while the coverage and often without remuneration dependent on the weather. Since agriculture imately 38% of the population is not yet cov-
overall unemployment rate declined steadily (CESE, 2014). In rural areas, for example, 74% employs more than 75% of the labour force ered by basic medical insurance, particularly
from 2000 to 2011, youth unemployment of employed women in 2012 were unpaid. in the rural area, the rural unemployment rate people who work in the informal sector, the
started spiking again after 2003, despite This primarily stems from women's historically depends directly on sector performance. liberal professions and the self-employed.
the implementation of several programmes limited access to primary education and limited For instance, the particularly arid climatic The Government is stepping up its efforts
(Idmaj-Insertion, Moukawalati-My Business, women’s entrepreneurship. Moreover, in rural conditions of 2016 resulted in the loss of 154 to extend social security coverage to self-
Ta'hil-Qualification). The growth diagnostic areas, 73.2% of women are in underage 000 rural jobs (MEF, 2016). The authorities employed workers. However, the best
identified human capital as one of the two employment (under 15 years) and have no have deployed considerable efforts to organized socio-professional categories will
major constraints to more robust and access to secondary education (only 23.6% of improve agricultural sector productivity, be integrated first, thus creating pockets
job-creating growth (AfDB, GoM, MCC, rural girls currently attend secondary school). mainly through the Green Morocco Plan to of fragility within the ranks of the self-
2015). In terms of quality of education and Furthermore, of the 36.7% of the population develop better quality jobs in the rural area. employed. The adoption of a job loss
training, 38% of major corporations cite the classified as illiterate, 64.7% are rural women. This plan increased agricultural GDP signifi- allowance is one of the attempts made to
lack of sufficiently skilled labour as a major In addition, the percentage of self-employed cantly by 49% between 2008 and 2013. reduce workers’ vulnerability. However, this
constraint to their development. In addition to persons within the labour force is 33.4% for Thanks to the National Irrigation Water reform does not yet constitute unemployment
the shortage of human capital, the diagnosic men but only 14.5% for women (HCP, 2014). Savings Programme, over 51% of additional insurance per se and only benefits a small
reveals that the mismatch between the skills Apart from socio-cultural factors that hinder the value-added created by the crop sub-sectors number of workers. Furthermore, only one
developed by the education and training development of women’s entrepreneurship, since 2008 comes from irrigation farming third of the workforce contributes to a
system, and the needs of businesses (especially limited access to finance and inadequate areas. Although the proportion of the irrigated pension system.
25 A f r i c a n D e v e l o p m e n t B a n k A f r i c a n D e v e l o p m e n t B a n k 26Kingdom of Morocco: Country Strategy Paper 2017 - 2021 Kingdom of Morocco: Country Strategy Paper 2017 - 2021
► Accelerate Transformation of the 2015). However, this situation is evolving in 2.2.9 The desire to transform Morocco dependence on the State budget, which
Economic Model through Industrialization the automotive sector, where the value into a production and trade hub should fluctuated depending on international oil price
chains have been improving over the past be driven by the need to continue imple- trends. However, the fact remains that such
2.2.7 Morocco's economic growth creates four years, with over 40% of the value-added menting an investment programme dependence affects the balance of payments
very few jobs (HCP, 2005; AfDB, GoM, MCC, for cars created nationally. Moreover, Moroccan focused on transport and logistical infra- and industrial sector competitiveness.
2015). The elasticity of employment to growth exports do not sufficiently play the role of structure (AfDB, 2016 b; AfDB - AMU,
is less than 0.5, which makes it difficult to anchoring economic growth to a large and 2016). According to the Doing Business 2.2.11 To reduce this dependence, the
nd
absorb the flow of young job seekers entering promising market. Although it has improved report, Morocco was ranked 102 in the authorities are implementing a renewable
the labour market. The low correlation between markedly in recent years thanks to Morocco’s World in 2016, in terms of cross-border energy investment programme that
the employment rate trends of young graduates global business lines, export sector performance trade. In particular, the costs and export time requires significant investments. The
and economic growth stems from the predom- remained modest at 17% of GDP in 2016, limits remain high compared to the average objective is to ensure that renewable energy
inance of sectors within the economy, such as compared to 30% for imports. Furthermore, in the MENA and OECD regions. Moreover, accounts for 42% of electricity production by
agriculture and trade, which mainly employ these exports are mainly concentrated in the despite its quality infrastructure, the country 2020. The solar programme requires a total
low-skill workers. Hence, the low level of indus- EU (85% of agricultural exports in 2016). This declined by 24 spots between 2014 and investment of USD 9 billion, while wind
trialization (which, like agriculture, contributes performance affects the trade balance deficit 2016 as regards logistical performance, energy requires USD 3.7 billion to develop a
th
14% of GDP) limits job creation for young estimated at 13% in 2016. Therefore, falling to 86 position in global rankings (WB, capacity of 4000 MW by 2020. Solar and
graduates (AfDB, 2014). Morocco must continue with the progress 2016). Morocco is ranked 90th and 91st in wind energy programmes are being developed
made in ensuring the diversification and terms of transport and logistical infrastructure. through industrial integration to strengthen
2.2.8 Morocco’s low structural transfor- sophistication of its exports (CID, 2016 - Developing such infrastructure requires the green sub-sectors.
mation is mostly attributable to the modest Annex 17). In addition to human capital, the substantial resources. For example, the
ripple effect of the private sector on the 2016 growth diagnostic and global competi- authorities estimate that Morocco needs ► Preserve Water Resources
economy (HCP, 2005; AfDB, GoM, MCC, tiveness report identified several aspects of USD 10 billion to position itself strategically in
2015). SMEs, which account for over 95% the business climate that authorities should the port sector. 2.2.12 The water resource situation in
of the productive fabric, are struggling to continue to improve to facilitate business Morocco is disturbing. The renewable
develop. In terms of jobs, the probability that creation and development, boost exports ► Reduce Energy Dependence water resource rate is less than 600 m3/
a company with less than 10 workers would and strengthen innovation. These include person/year (the critical threshold being 1000
increase its staff strength to over 100 after taxation, bureaucracy and land tenure. 2.2.10 Energy supply and the reduction of m3/person/year) (FAO, 2016). Even though
5 years is negligible (0.4%). In terms of Access to funding also seems to be an issue energy dependence are major challenges drinking water production increased fivefold
value-added, it is becoming difficult to estab- since it is regularly cited as a major constraint for Morocco. While demand is growing at over the past three decades, the 145 dams
lish integrated value chains. An analysis of by SMEs (BM & WEF, 2016). Trade procedures a 6% annual rate, the country has a high have a storage capacity that is below the
Morocco’s position in terms of production must also be strengthened, as the Doing dependency rate (96% between 2004 and population's annual water consumption.
shows a lack of connection between the Business classification ranks the country 2011), with oil accounting for 27% of imports According to the IPCC, climate trends in the
nd th
industrial sectors. This reduces synergies and 122 in terms of traceability and 124 for in 2014 (MdEMEE, 2013). The drastic reduction sub-region are particularly disturbing due to
undermines the development of the industrial efficiency of customs clearance procedures of energy subsidies between 2013 and 2014 declining rainfall, estimated at 30% by 2050.
fabric based on SMEs (AfDB, GoM, MCC, (WB, 2016). significantly reduced the impact of such Furthermore, the significant efforts made to
27 A f r i c a n D e v e l o p m e n t B a n k A f r i c a n D e v e l o p m e n t B a n k 28Kingdom of Morocco: Country Strategy Paper 2017 - 2021 Kingdom of Morocco: Country Strategy Paper 2017 - 2021
develop water management infrastructure draws from the multiple free trade agree- Firstly, this is reflected in the accelerated 2016f). The sector employs 40% of the
have led to the development of large-scale ir- ments signed with the EU, USA, Turkey and implementation of the 2015-2025 Employment labour force at the national level and 75%
rigation, thus aggravating the pressure on several Arab and African countries (AfDB, Strategy and Education Vision 2030. Secondly, in rural areas (MEF, 2015).
water. The current irrigated surface area is 2016), and supplemented by the search for the State has continued its commitment to
nearly 1.5 million hectares, of which two- new partners. In this regard, Morocco aspires improving the functioning of and access to 2.2.18 Competitiveness gains are possible
thirds have been equipped by the authorities. to become a hub for trade with the rest of public services nationwide. because the agricultural value chains
In response, Morocco initiated the exploitation Africa (AfDB, 2016b). remain barely developed and fragmented.
of abundant resources such as seawater or 2.2.16 The improvement of living condi- Agricultural production is characterized
wastewater, using new technologies (e.g. 2.2.14 Morocco also embarked on an tions through equal access to economic by the coexistence of a large number of
desalination plants). The development of ambitious reform process to improve the opportunities is indeed central to many small-sized farms (70% of the 1.5 million
infrastructure and an integrated approach to business climate. The establishment of the policies on which the Bank's intervention farms have a surface area of less than 5 ha),
ensure the sustainability of water resources National Business Environment Committee framework can rely to support reforms the low quality of their output, very limited
are essential for developing the type of contributed to the adoption of a consultative and investments. The Green Morocco Plan, market integration and a limited number of
agriculture that creates jobs and is sustainable. and integrative approach to reforms. The the National Rural Development Strategy and large farms with high value-added, whose
reforms specifically aim at developing entre- the Development Fund for Rural and Mountain output is mainly exported. Actually, the 1.5
C) STRENGTHS AND OPPORTUNITIES preneurship and SMEs (AfDB, 2016e; AfDB, Areas are central to this from a territorial million farms only account for 4% of exports
2015c). Furthermore, major investments are standpoint (DAT, 2011). The SNDR seeks to: while the agro-industry sector, which is less
► A Clear Industrial Strategy and a being made to provide investors with the (i) improve the quality and attractiveness of labour-intensive (60,000 workers), accounts
Strong Desire to Improve the Business infrastructure needed for their development. rural life; (ii) improve the competitiveness for 2%. Paradoxically, the coverage rate has
Environment For example, the Nador and Kenitra ports or and diversity of the rural economy; and (iii) declined since 1990, indicating a deficit in
the TGV (high speed train) line were built in create the conditions for environmental agricultural products.
2.2.13 The year 2014 was marked by the 2015-2016. sustainability. The Fund is particularly solicited
adoption of a new industrial strategy to reduce the human development deficit and 2.2.19 Sector competitiveness had
(2014-2020), which continues the promotion ► A New Constitution (2011) that guarantee access to education in remote improved, thanks to the Green Morocco
of new sectors: automobile, electronics, Promotes Access to Education and areas. Plan. Since 2008, the plan has led to: (i)
aerospace, and 'offshoring'. In 2015, auto- Labour an increase of 137,000 ha in the irrigated
mobile (+26.2%), electronics (26%) and ► An Agricultural Sector with High surface area; and (ii) a 70% increase in fruit
aerospace exports (+1.8%) increased 2.2.15 Morocco has continued its major Potential and vegetable production. Exports of agri-
remarkably (MEF, 2016). The authorities also reform drive to ensure that its regulatory food products surged to over MAD 32.5 billion
pay special attention to agro-industry, which and institutional frameworks are consistent 2.2.17 The agricultural sector holds in 2013, or an increase of 123% since 2001.
benefits from the achievements of the Green with the requirements of the 2011 Consti- enormous opportunities in terms of Despite growing competition, especially from
Morocco Plan in terms of improving production tution. Article 31 of the Constitution provides development and job creation through countries of the Mediterranean basin, Morocco
downstream. These sectors were identified by for citizens’ access to conditions that enable the structuring of value chains and is ranked among the world’s five leading
the AfDB as being most capable of creating them to enjoy economic and social rights, product quality improvement (ADB, exporters of several products.
jobs and wealth (AfDB, 2012). This strategy including the right to education and work.
29 A f r i c a n D e v e l o p m e n t B a n k A f r i c a n D e v e l o p m e n t B a n k 30Kingdom of Morocco: Country Strategy Paper 2017 - 2021 Kingdom of Morocco: Country Strategy Paper 2017 - 2021
► A Strong Commitment to Combating regards adaptation, the programme includes: promote the private sector, industrialization assistance needs are significant. These sectors
Climate Change and Preserving Resources (i) the substitution of overexploited ground- (competitiveness, financial sector, agriculture) include energy [with WB, IsDB and KfW],
water with surface water; and (ii) the acceleration and employment (matching training to agriculture [with AFD, WB and JICA] and
2.2.20 Moroccan authorities have made of desalination programmes, construction of employment, protection of workers), these water [with the WB and the AFD]. However,
great efforts in terms of public policy dams and recycling of wastewater by 2030. being sectors in which the Bank has the partners develop certain specificities in
and operational initiatives to protect Concerning drinking water, an estimated recognized expertise. such operations. For instance, renewable
the environment. The 2011 Constitution water savings potential of 120 Mm3/year is energy, irrigation and development agricultural
recognizes access to a healthy environment possible through recourse to appropriate 2.3.2 The Bank, together with the WB, KfW value chains, and integrated water resource
as a fundamental right of citizens. The technologies and greater efficiency in its AFD and EU (and its institutions), is one of management are areas in which AfDB is
National Environment and Sustainable usage (UNECA, 2016; WB, 2013; UNFCC, Morocco’s leading donors. The support of one of the lead donors. Thirdly, the leading
Development Charter adopted in 2014, 2015). the Gulf countries (Qatar and Saudi Arabia) is partners have also developed some very
establishes an environmental taxation system also significant (UA 1.5 billion) and is provided specific skills, for instance in urban devel-
composed of green taxes levied on activities 2.3 AID COORDINATION/ HAR- in the form of grants (Table 1). Analysis of the opment (AFD), or waste management (WB).
that have a significant impact on natural MONIZATION AND BANK’S portfolio of institutions with a similar level of AfDB’s specificities include: (i) its ability to
resources. This drive led to the publication POSITIONING commitment as the Bank (Annex 5) yields conduct reform programmes aimed at
of the National Strategy for Sustainable three conclusions on identification of the boosting the competitiveness of the economy
Development 2015-2020 (ME, 2015). 2.3.1 The AfDB is a long-term privileged Bank's interventions for the 2017-2021 and reducing social inequality through
partner in the development of Morocco. period. Firstly, these institutions have similar employment, while mobilizing partners (EU,
2.2.21 The Kingdom also played a major The country has the Bank’s largest portfolio, strategies, involving the implementation of WB and JICA) and developing synergies with
role on the international scene by under- comprising 35 operations for a total commitment broad crosscutting approaches with very its investment programmes; (ii) its longstanding
taking to reduce its greenhouse gas of UA 2 billion (Annex 16). The portfolio covers strong synergies between partners; this competence in developing large-scale infra-
emissions under COP 21 and organizing seven areas: energy (38.7%), transport (24.8%), approach should be consolidated in the new structure (transport and logistics, energy,
COP 22 in 2016, during which it introduced water and sanitation (14.5%), agriculture strategy. The broad crosscutting approach water and sanitation, while mobilizing the
the issue of water resources into the discus- (6.8%), the social sector (4.9%), non-sovereign also enables the leading partners to address AFD, EIB or EBRD), and in infrastructure used
sions. During COP 21, Morocco undertook operations (0.6%) as well as multi-sector major development challenges in an inte- to stimulate economic development and
to reduce greenhouse gas emissions by 13% operations (9.8%). The portfolio is concentrated grated and concerted manner, especially as create employment. Intervention pillars are
before 2030. This effort could be increased on infrastructure (85% of commitments) these challenges are highly inter-dependent identified around these complementarities
to 32% if international funds are mobilized especially in the energy and transport sectors in emerging economies. This approach also and AfDB’s specific competencies.
(estimated at USD 45 billion). As regards in which the Bank has a real comparative makes it possible to diversify risk when
climate change mitigation, 50% of the advantage. However, it is worth noting that dealing with large portfolios and to sustain 2.3.3 The AfDB Field Office in Morocco
projects focus on energy. They include: (i) a this portfolio mainly reflects the Bank's invest- their disbursement performance. Secondly, (COMA) plays a key role in consolidating
determination to increase the share of renew- ment projects and that 39% of allocations there are strategic sectors in which Morocco’s dialogue with the government and other
able energy within the installed electricity over the 2012-2015 period (UA 1.85 billion) major partners are systematically committed. development partners. Regular dialogue
capacity to 42% by 2020 (34% in 2015); and are provided as budget support to the State. Such joint commitment builds substantial between COMA and the authorities helps to
(ii) the improvement of energy efficiency. As These operations have supported reforms to leverage in areas where financial and technical identify problems and priority actions that
31 A f r i c a n D e v e l o p m e n t B a n k A f r i c a n D e v e l o p m e n t B a n k 32You can also read
