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Oxford Business Group: The post-Covid recovery of the economy in Morocco

Oxford Business Group (OBG) is set to release a new report on Morocco’s post-Covid economic recovery, dubbed the Morocco Economic Recovery Report.

Carried out in partnership with the Moroccan Agency for the Development of Investments and Exports (AMDIE), the study by the economic intelligence and consulting firm provides an overview of the economic situation of the North African kingdom and presents in a synthetic manner the efforts made by the government to emerge from the crisis as well as the initiatives of the private sector to stimulate activities and in particular to attract FDI.

The opportunities present in the key sectors of the economy also occupy a prominent place in this new report, which devotes a whole part to the growth sectors, namely the agro-industrial, the pharmaceutical sector, the aeronautics and the automobile as well as new technologies and offshoring which, thanks to the digitalization strategy carried out by the Kingdom in recent years and the acceleration of the digital transformation observed in response to the Covid-19 crisis, offer solid prospects growth.

If Morocco has been strongly impacted by the economic crisis linked to Covid-19, experiencing its first recession since 1997, the country should, according to projections, quickly return to growth. The African Development Bank and the IMF both forecast growth of 5.3% in 2021, then around 3.5% to 3.9% until 2026. The Moroccan government quickly put in place a series of measures intended to support the economy, especially SMEs, including the recovery in a longer-term development strategy that provides for increased social protection, in particular through the formalization of the labor market initiated by the authorities or the generalization of coverage medical service by the end of 2022, and has chosen a sustainable and inclusive growth project.

The government has taken important and necessary steps to lift the country out of the crisis, but the private sector is also playing a key role, especially in attracting foreign direct investment. The promotion of FDI in Morocco is more relevant than ever, as evidenced by the launch a few weeks ago of the new brand of the investment destination Morocco.

Called Morocco Now, the latter is part of a proactive government policy aimed at encouraging investment, underlined the Director General of AMDIE, Youssef El Bari, who declares: “Through this new identity, the Kingdom aims to invite investors to take advantage of a new investment platform, characterized by competition.” He added,” we hope that the economic recovery that Morocco is currently experiencing will be accompanied by an increasing inflow of FDI.” The strengthening of the African orientation of Morocco, which applied for membership in ECOWAS in 2017, and the entry into force of the African Continental Free Trade Area (AfCFTA) in January 2021 should also have an impact on the attractiveness of Morocco for investors.

Finally, the report examines the Moroccan strategy for adopting environmental, social and governance criteria, essential criteria for a country wishing to establish its position as a key player in renewable energies in Africa.

OBG’s Managing Director for Africa, Karine Loehman, is delighted by the release of this new report in collaboration with AMDIE. “Morocco has learned the lessons of the pandemic, integrating them into its new development model unveiled in the spring, in which the strengthening of human capital and job creation go hand in hand with the modernization and diversification of the economy. . Its dynamism is well established and new investment opportunities are emerging in many sectors,” she said.

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