Akhannouch: Morocco offers political and economic stability to boost foreign investment

The Moroccan Prime Minister, Aziz Akhannouch, defended his country's suitability to welcome foreign investment at a business forum held in Rabat. "Our country enjoys a privileged position for foreign investors, consolidated by its political and financial stability," he said. 

The head of government, who took part in the National Business Environment Congress under the theme "For a new generation of investors and entrepreneurs", stressed that "our country enjoys strong political stability and a strategic geographical location, and aspires to consolidate its position as a regional production and export pole". 

The event, held at the Rabat headquarters of the National Agency for Land Conservation, Cadastre and Cartography, was attended by the main players in Moroccan business, the economy and finance, and served to recall the main objectives of the government's roadmap for the period 2023-2026: nearly 45 billion euros of investment by private entities and the creation of half a million jobs. 

To this end, the government has established a strategy with three fundamental pillars: "Facilitating the tasks of entrepreneurship and investment, improving the competitiveness of Moroccan companies, and promoting the creation of a new generation of entrepreneurs", in the words of the Prime Minister. 

During the various panel discussions with business experts, the need to fight against the bureaucratic obstacles that still hinder the work of small and medium-sized enterprises was highlighted. Entrepreneurs are in favour of eliminating administrative barriers to make it easier for them to set up their businesses. 

Morocco has experienced steady economic growth in recent years, driven by a series of structural reforms and increased foreign investment. The country has worked to strengthen its position in the global market and has emerged as an important trade and investment hub in Africa. 

At a time of financial turbulence due to the crisis of the US Silicon Valley Bank and the Swiss Credit Suisse, the governor of the Bank of Morocco, Abdellatif Jouahri, sent a message of reassurance to the business community and noted that despite a difficult context, with the news coming from the United States and Switzerland, geopolitical fragmentation, problems in the global supply chain and the crisis caused by the war in Ukraine, Morocco's banking system enjoys great stability.  

Jouahri recalled that the reforms introduced in the banking system over the last few years have made it possible to respond successfully to an economic context that has had to cope with the aftermath of the pandemic and the paradigm shifts brought about by the digital transformation. In this context, accompanying entrepreneurs seeking finance is key to the development of the country's businesses. 

Political stability, an important reform agenda and a stable and competitive financial system are the weapons with which Morocco has to fight to promote business development. In this regard, the Governor of the Bank of Morocco renewed his commitment to promoting dialogue and collaboration between entrepreneurs seeking financing and the country's banking institutions. In response, the President of the Professional Association of Moroccan Banks (GPBM) took up the gauntlet. Othman Benjelloun said that the act of entrepreneurship and the act of investment are fundamental parts of banking activity and stressed the support of the financial institutions of the GPBM for the development of the business sector, "as we have been doing for 60 years". 

The banking sector in Morocco has supported the creation of sectors that are national and international benchmarks, such as the aeronautical industry, the automotive industry, tourism, the textile industry, pharmaceuticals and biotechnology, Benjelloun said.  

Since the 1990s, the Moroccan government has implemented a series of measures to liberalise the economy, reduce bureaucracy and improve conditions to encourage investment. In order to influence these aspects, the Minister of Investment, Convergence and Public Policy Evaluation, Mohcine Jazouli, insisted on the importance of the 2023-2026 roadmap as a strategic pillar for the development of the business environment. The ultimate goal is to improve the conditions to encourage private investment and ensure dynamism through business competitiveness, private sector involvement and banking sector stability.

The Moroccan minister pointed to a series of reforms of government structures in order to better respond to the needs of investors. Specifically, Jazouli cited the investment department and the regional investment centres that report directly to the Prime Minister's office. The aim is to ensure that investors have the necessary interlocutors in the administration to speed up their work. This includes the creation of the National Investment Commission, which will be tasked with promoting legislative reforms to foster the creation of a favourable economic climate for investment. 

As a consequence of investment support, economic performance should translate into financial support for the state's social objectives, the creation of added value and job creation, recalling the target of 500,000 jobs by 2026 announced by the Prime Minister at this same economic forum. 

To achieve this and other investment objectives, the roadmap proposes close cooperation between the regions, the banking sector, the public sector and the private sector.

As the Minister for Investment recalled, it is important to adopt a territorial approach because it is in the regions where investment projects are born, where they are developed and, ultimately, where they are left to produce the social and economic impact for the benefit of their communities. 

This social and economic impact is one of the objectives of the General Confederation of Moroccan Businessmen. "Know that you can count on the private sector for these challenges," said Chakib Alj, president of the Moroccan employers' association, at this business, political and financial forum. It is a question of all the sectors involved, government, private sector and financial institutions, keeping their promises. In this sense, the business representative announced that they are closely monitoring the actions for the activation of the Mohammed VI Fund with a disbursement of between 12 and 15 billion euros over a period of five years, which will allow the State to participate in strategic investments in the private sector. 

The business leader stressed the need to revitalise the Casablanca Stock Exchange so that the capital market can benefit the business fabric, and the implementation of policies to facilitate the establishment of local industrial zones. He also highlighted initiatives such as the creation of the Small Business Act, a procedure to facilitate the work of small and medium-sized enterprises. 

Chakib Alj also stressed the importance of reducing production costs, particularly energy costs, which have an essential impact on companies' profit and loss accounts. True to his commitment to sustainability and renewable energy, the CGEM president insisted on the need to reduce carbon emissions. 

He called on policy makers to improve the regulation of strategic sectors, in particular technology companies.