Morocco achieved a jump of 7 places in the Doing Business 2020 World Bank, made public Thursday in Washington, to rise to 53rd rank on the global scale.
“This breakthrough marks a significant step forward in achieving Morocco’s goal of reaching the top 50 largest economies in the world by 2021,” the Department of the Head of Government said in a statement. Morocco maintains its lead in North Africa and ranks third in the MENA region, behind the United Arab Emirates (16th) and Bahrain (43rd), and in front of Saudi Arabia (62), Oman (68), Jordan (75), Qatar (77), Tunisia (78), Kuwait (83) and Egypt (114).
At the African level, the report notes that Morocco retains its third position behind Mauritius, which ranks 13th in the world, Rwanda (38th), and ahead of Kenya (56th), South Africa (84th), Senegal (123rd) and Nigeria (131st).
“The positive score of Morocco in this new world ranking is due to the adoption of a series of important measures and reforms related to the business and activities of Moroccan companies, which fall within the framework of the program of work in Morocco of National Committee on the Business Environment (CNEA),” the statement said.
The secretariat of this Committee also played an important role in presenting the World Bank experts with the reforms introduced to improve the business climate in our country, mainly related to the development of legal and regulatory frameworks for companies, as well as the simplification and digitization of a set of administrative procedures related to the business life cycle, in addition to the creation of electronic platforms for services and one-stop shops. Reforms of Law No. 17.95 on Public Limited Companies and Law No. 5.96 on Partnership, Limited Partnership, Limited Liability Company and Joint Venture, were among the major reforms that came into effect during the year.
These reforms, explains the same source, have helped to strengthen the protection of minority investors and establish the principle of transparency and good governance based on international standards in this area.
As a result, Morocco’s ranking in the Index of Protection of Minority Investors has gone from 64th to 37th place, one observes.
In addition, Morocco ranked 16th in the building permit index by launching a new version of the electronic platform for digital management of building permits.
The Moroccan ranking in the grid connection index (34th globally compared to 59 last year) has also improved thanks to the facilitation of the electrical connection of companies in Casablanca through the launch of an electronic platform, called “e-Connection”, for the filing and follow-up of medium voltage connection requests and the development of the use of prefabricated substations.
The World Bank report also mentions a series of other reforms that have contributed to the improvement of Morocco’s business climate and its international ranking, in this case:
-The establishment of an automated system for assigning cases to judges and the publication of reports on the performance of courts, which facilitated the execution of contracts and allowed Morocco to reach the 60th rank in the world;
-The establishment of a system of electronic payment of port fees, the elimination of paper-based transit procedures and the extension of working hours in the port, which has accelerated cross-border trade operations and propelled Morocco at the 58th position worldwide;
-The reduction of the tax rate on companies by adopting a progressive system of corporate taxation, which has enabled Morocco to reach the 24th rank in the world of fiscal performance index.
With this result, Morocco has taken a step towards achieving the goal set by the government program to integrate the country among the 50 best economies in the world in terms of improving the business climate here at 2021.
In this perspective, other reforms are being developed, such as the creation of a national register of personal property security as part of the implementation of the law on personal property security, which will allow SMEs to have access to the necessary financing and to improve Morocco’s ranking in the access to finance index.
The Doing Business report seeks to measure the performance of 190 countries in business facilitation by assessing the legislation and administrative procedures adopted in ten different areas of the business life cycle, namely business creation, cross-border trade, payment of taxes, building permits, the connection to electricity, the transfer of ownership, access to financing, the execution of contracts, the protection of minority investors, as well as the management of files of companies in difficulty.