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Deloitte: Morocco, future regional economic power

Morocco is at the center of a new report from international business advisory group Deloitte. The company examines Morocco’s strategy to strengthen the national economy in the face of a global recession. In this report from the world leader in auditing and professional services, economic analysts Emmanuel Gadret, Mehdi Serghini and Alexandre Kateb examine the comprehensive plans and “major measures” that the Kingdom has implemented amid the Covid-19 crisis.

Analysts cite the World Bank’s annual report, which called Morocco’s economic strategy and its response to the brutality of the pandemic “swift and decisive”. The report lists the development of Morocco’s national infrastructure as part of its achievements before and during the pandemic. Improvements to the country’s roads, railways and ports have helped facilitate its trade. Coupled with the new trade agreements signed with the United States, the EU, Turkey, Egypt and the African Continental Free Trade Area (AfCFTA), these decisions have helped to give Morocco an “economic shock absorber” while economic activity was slowing in most countries.

“It now remains in Morocco to add to the projects already open those, critical, of the reform of justice and education, in order to be able to transform the trial and pass from the status of” champion of resilience “to that of new regional economic power”, affirms the report after detailing the avenues for strengthening economic resilience in the short and medium term.

Analysts have highlighted the Kingdom’s new reform ambition, triggered by the pandemic sequence. This ambition is based on “a new social contract driven by the universalization of social protection, digitization as a response to the crisis and a catalyst for post-crisis transformation, and a shock of simplification and modernization of the State”. They also cited the International Monetary Fund (IMF), which hailed the Kingdom as making “the right choice for its citizens”.

“The Moroccan economy has been one of the most dynamic to adjust and adapt to the constraints but also to the opportunities posed by the crisis linked to the pandemic of the new Coronavirus”, specified the director general of the MENA department and IMF Central Asia, Jihad Azour. While listing the major socio-economic issues that the country still needs to tackle, including the low participation of women in employment, socio-economic disparities between regions and unequal access to resources, the report describes the climate business in Morocco as having made “clear progress”. Analysts attributed a significant portion of this progress to the fact that it began with the coronation of King Mohammed VI, and to the many reform initiatives adopted during his reign. Experts called these reforms “anticipatory,” adding that they have contributed to Morocco’s resilience in the face of exogenous and endogenous shocks.

In this wake, the New Development Model for 2035, with a medium-term recovery plan (2025), saw the light of day in response to the crisis, analysts at Deloitte recalled, specifying that the two solutions consisted of to articulate short-term stabilization and support measures to compensate for the fall in activity, employment and income (2020-2021) The Kingdom’s commitment to green energy and sustainability has also highlighted as a success for the country.

Analysts noted that this indicates Morocco’s commitment to tackle future global issues such as pollution and climate change.

“Morocco is resolutely committed to the green transition and sustainable development”. Among the remaining challenges, the report highlights the prevalence of rents in sectors not subject to international competition and the unequal access of entrepreneurs to tangible and intangible resources. Structural transformation, reduction of social and regional polarization, development of human capital and liberalization of initiatives, are also the major challenges facing Morocco, according to analysts.

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