The World Bank on Monday urged Morocco to “create a business friendly environment so that they can penetrate markets, expand and export.”
“This will require conditions conducive to fair competition, human capital and better skills to meet the needs of a modern workforce and thereby encourage entrepreneurship,” they said in an analysis of the situation of the private sector in Morocco.
According to the global financial institution, the country has invested heavily (34% of GDP since the mid-2000s), but “the benefits in terms of economic growth, job creation and productivity have been disappointing,” they said.
The focus must be on the private sector to drive growth. This includes the establishment of rules of the game “fair for all operators”, they added, because policies that have favored foreign direct investment (FDI) and large investments “accentuate disparities in the market conditions faced by companies, especially since measures to meet the needs of small businesses have been relatively less successful”.
For the authors of the diagnosis, the many incentive mechanisms available for new investments in industrial areas exclude existing exporters from these areas.
“This situation has likely discouraged existing companies outside the zones from becoming exporters or increasing their exports, although measures are currently being put in place to rebalance the incentives to set up,” the World Bank noted.