“This royal confidence honors us and consolidates our determination to succeed in reviving our economy,” the CGEM president said.
Rabat – King Mohammed VI is reportedly in favor of strong state mobilization to support the private sector for the success of Morocco’s economic recovery.
Citing an “informed source,” Moroccan news outlet Medias24 reported that the President of the General Confederation of Enterprises of Morocco (CGEM), Chakib Alj, said the King gave high instructions for strong state support of the private sector.
“His Majesty the King follows very closely the actions in progress and supports the private sector. As such, he gave his High Instructions for a strong mobilization of the State to support economic operators for the success of this recovery,” Alj said during a videoconference meeting of the CGEM Board of Directors today.
“This message, with a strong and strategic impact, was transmitted to [the CGEM]” during a meeting of the Confederation, several ministers, and the royal cabinet, Alj added.
On behalf of all Moroccan business leaders, Alj thanked King Mohammed VI for his support and his confidence in economic operators of all sizes, all sectors, and all regions.
“This royal confidence honors us and consolidates our determination to succeed in reviving our economy, under the enlightened leadership of His Majesty, in our values: solidarity, patriotism, and citizenship,” he continued.
On May 22, the CGEM sent Morocco’s Economic Watch Committee (CVE) a 125-page economic recovery proposal to revive demand, preserve employment, and return companies to their pre-crisis standings.
During the videoconference today, Mohamed Benchaaboun, minister of economy and head of the CVE, said the CGEM’s bottom-up approach to economic recovery “constitutes an extremely rich repository and a working tool for all sectors,” according to Medias24.
The CGEM proposal includes seven flagship measures. The first is the introduction of partial unemployment for struggling companies with costs shared among the employer, the employee, and the state.
The proposal also calls for an extension of aftermarket orders (AMO), shifting consumer preferences towards locally-made goods, prioritizing public investment, conditioning automatic long-term loans, introducing mechanisms for restoring equity, and introducing a 10% value-added tax over an 18-month period to incentivize targeted demand.