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Rabat – Africa is in critical need of inclusive economic integration across the continent to achieve long-term prosperity, Abdellatif Jouahri, Governor of Bank Al-Maghrib (BAM), Morocco’s central bank, said today.
Speaking at the opening of the 5th edition of the “International Days of Macroeconomics and Finance” (JIMF) in the southern Moroccan city of Dakhla, Jouahri highlighted the mutual benefits of such integration while ensuring it does not disadvantage the most vulnerable countries and populations.
He pointed out the substantial benefits of integration, citing the African Continental Free Trade Area (AfCFTA) as a “beacon of hope” with significant potential impacts.
Various evaluations, although approximate, show considerable gains from the AfCFTA. Simulations by the International Monetary Fund (IMF) suggest that with trade-facilitating reforms, the zone could boost Africa’s median trade with the world by 15% and with African countries by 53%, increasing the median GDP per capita by over 10%.
Despite these promising prospects, Jouahri acknowledged the long road ahead for Africa. He stressed the need to leverage human capital, implement deep economic reforms, and address the significant infrastructure deficit.
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According to the African Development Bank (AfDB), the continent faces unmet infrastructure financing needs ranging between $68 billion and $108 billion annually.
Jouahri also recalled that political and security stability is crucial for the success of these reforms, a condition currently lacking in some African regions. However, he highlighted Africa’s enormous development potential, particularly its young and rapidly growing population.
Despite the challenging international context, Jouahri is optimistic about Africa’s emergence on the global stage. He mentioned the African Union’s accession to permanent membership in the G20 in 2023 and the recent allocation of a third seat for Africa on the IMF’s Executive Board as early indicators of Africa’s rising international position.
The BAM chief also spoke of Morocco’s strategic focus on Africa, highlighting King Mohammed VI’s calls for win-win co-development and large-scale projects like the Morocco-Nigeria Gas Pipeline, which aims to diversify energy supply and enhance food security.
Most recently, Moroccan launched the Atlantic Initiative seeks to facilitate commercial integration for several landlocked African countries.
Moroccan public policies have favored trade and investment relations with the rest of the continent, aiding the establishment of Moroccan groups in various sectors, including financial services, mining, telecommunications, and real estate.
BAM has encouraged and supported Moroccan banks’ growth in Africa, where they now operate in over thirty countries, conducting nearly 23% of their activities.
Jouahri further highlighted BAM’s close relationships with many African regulators, sharing experiences and expertise both bilaterally and within organizations like the Association of African Central Banks, the Economic Commission for Africa, and the African Union.
“As a central bank, we maintain close relationships for sharing experiences and expertise with many regulators on the continent, either bilaterally or within bodies such as the Association of African Central Banks, the Economic Commission for Africa, or the African Union,” he insisted.
