Head of government, Saad Eddine El Othmani announced that the government is increasing its public investments in 2021 to roughly 230 MAD billion
The head of government, Saad Eddine El Othmani said on Monday in Rabat that the average annual public investment under the current government will reach unprecedented levels in the coming year.
Morocco’s government spent 201.6 billion dirhams in 2020, far exceeding previous levels of public investment.
Public investment between 2012 and 2017 reached MAD 186.6 billion, a marked increase on the MAD 132.5 billion spent between 2007 and 2017, said the PM at a monthly plenary session on general policy issues.
Morocco witnessed a decline in public financial revenues due to the COVID-19 crisis. Despite this, the government has set ambitious targets for new public investments in 2021 of around 230 MAD billion, of which MAD 45 billion will be financed by the Mohammed VI investment fund.
The government is eyeing significant reforms in support of improving the business climate and promoting the entrepreneurial fabric, specifically very small, small, and medium-sized enterprises.
These investments seek to strengthen the competitiveness of the national economy, the production of wealth, the creation of job opportunities as well as support growth in Morocco’s GDP.
The head of the government mentioned the nearly 50% increase in the number of investment projects carried out by the regional investment centers between 2019 and 2020. El Othmani also highlighted increased government efficiency evidenced by a decrease in the average file processing time that went from 100 days to less than a month.
Morocco’s reform targeting movable securities system has facilitated companies’ access to capital, with a particular focus on small businesses.
The electronic register for movable securities has recorded more than 218,000 transactions and more than 104,000 mortgage registration notices. The new register has recorded a total amount of roughly MAD 173 billion, in less than ten months.
The official said that the government is considering increasing the import tax on finished products as well as evaluating Morocco’s free trade agreements. The government is also looking into the application of protectionist measures when necessary, and the intensification of efforts to promote the national products.
El Othmani highlighted that the country’s trade deficit has shrunk significantly, meaning that Morocco is relatively importing less and exporting more.