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Join on Telegram Rabat – As 2021 edges to an end, we thought it useful to capture in broad five headlines Morocco’s major economic achievements this year. While leaving much to be desired in education and healthcare, Morocco has made substantial economic achievements in 2021. Here are the top six worth remembering.
1 Benchmarking interest rates at 1.5%
As countries hiked their interest rates in 2021 to keep down inflation, Morocco’s interest rates remained unchanged at 1.5%.
The Central Bank’s decision to maintain the interest rates at the same level in 2021 demonstrates a stable and resilient economic performance in the wake of the pandemic.
Despite international pressure on Consumer Purchasing Power, Morocco maintained inflation well under the 2% threshold for the 11th year in a row.
2 ‘Morocco Now’ marketing campaign
Of all the major business and financial headlines associated with Morocco this year,, the global reach of the “Morocco Now” initiative was especially hard to miss.
Debuting at the Dubai Expo in October, the “Morocco Now” campaign gained international attention appearing in Times Square, Bourj Khalifa, and major business networks worldwide.
The marketing campaign featured a short video boasting Morocco’s European-grade business infrastructure, young demographics, and pro-business culture.
Behind the marketing campaign is Morocco’s ambition to transform into an investment and regional industrial hub, bridging the distance between Europe and Africa.
Morocco already overtook South Africa as the first car manufacturer in Africa and is on its way to becoming the first exporter of cars in the Mediterranean sea. The country’s world-class Tangier MedPort, the largest terminal in the Mediterranean sea and Africa, has undergone extensive growth in 2021 to make this happen.
3 Morocco climbs the ranking in the global Prosperity Index in 2021
Devised by the British Legatum Institute for research, the Legatum Prosperity Index tracks the performance of 167 countries in terms of economics and progress in social issues.
Morocco ranked 91st on the global prosperity index. While the ranking may not be too impressive, the North African country continued ascending the ranking index in 2021.
In the business landscape, Morocco’s “Enterprise Conditions Pillar” is the best performing pillar for the North African country, according to the index. Morocco rose 25 ranks in the enterprise pillar in the last decade, reaching 73rd place in the 2021 ranking.
4 Morocco works towards a greener future
Parallel to Morocco’s ambitious plans to transform into a manufacturing hub, the North African country also has environmentally-conscious green plans for the future.
Within a broader vision to source 52% of its electricity from renewable energy by 2030, Morocco inaugurated its first floating photovoltaic power plant in September.
The state-of-the-art solar plant is the first in Africa. With a 360 KW output in its first phase, the plant projects to yield an annual input of 644 MWh from 800 panels.
In addition to sourcing green energy for solar panels, Morocco’s Ministry of Energy Transition and Sustainable Development announced in October plans to use biomass to create sustainable energy.
5 Morocco’s New Development Model
In May, a special committee presented Morocco’s king with a report that includes the blueprint for Morocco’s future socio-economic development.
King Mohamed VI had tasked the committee to draft a body of recommendations to serve as a roadmap for Moroccan legislators. Now in the public record, the report gives importance to Morocco’s education and healthcare sectors as the drivers of socio-economic development.
The model emphasizes that Morocco needs to capitalize on its young demographics to create sustainable development.
By encouraging entrepreneurship and private business initiatives, the Moroccan government can efficiently address unemployment and economic disparities in the country.
The development model presents a nationwide vision, requiring the private and public sectors to collaborate to reach the desired results.
Not long after the New Development Model was made public, Moroccan banks launched multiple funding programs to help young business makers debut in the business world, offering low-interest loans and legal and financial guidance along the way.
In terms of legislation, Morocco’s 2022 budget allocated massive funds to address unemployment.
6 Decentralizing to eradicate economic disparity
The need to decentralize Morocco’s regions from its administrative capital of Rabat is a project dating back to the 2011 constitution. The Moroccan government made significant strides on this front in 2021.
Morocco’s Ministry of Industry struck multiple deals with regional Chambers of Trade, Manufacturing, and Services (CCIS), aiming to accelerate the decentralization process.
With total funds of MAD 325,6 million ($35.1 million) in one phase, the government aims to support regional CCIS so they can emerge as financially autonomous entities capable of generating jobs and profits for their regions.
Aside from helping to alleviate the economic disparitiesy in the country, the process of decentralization aims to optimize public services by making public institutions more efficient and transparent.
The substantial economic achievements reached in 2021 are especially noteworthy considering the health and economic crisis facing the entire world this year.
