Morocco To Support Economic Actors Amid Current Challenges

Rabat – Moroccan public officials and private sector actors have reviewed the state of the country’s economic activities and national financial institutions amid the Ukrainian crisis, to discuss measures taken by the government to assist economic operators.

Morocco’s Minister of Economy and Finance Nadia Fettah Alaoui and Minister of Foreign Affairs Nasser Bourita chaired a March 10 meeting with Bank Al-Maghrib, Tamwilcom, Office of Change, and the presidents of the General Confederation of Moroccan Enterprises (CGEM) and the Professional Association of Moroccan Banks (GPBM).

The officials examined the latest Moroccan economic indicators. They noted that the economic activity in 2021 rebounded thanks to the recovery of several sectors and progress in the vaccination campaign, making it possible to make up for the production gap recorded in 2020.

Yet the Moroccan economy is expected to face challenges in 2022 due to the ongoing surge in the prices of raw materials and energy.

Notably, disruptions within the global supply chain and rising inflation induced by the COVID-19 pandemic as well as the Ukrainian war have contributed to the rise in gas and petrol prices. In response, Moroccan transport operators have organized a nationwide strike that is expected to end today, March 11.

With 27% of Moroccan cereal imports coming from Ukraine, the conflict has negatively impacted the wheat supply to Morocco.

The surge in wheat prices also reached Morocco as the global cereal prices increased from $214/tonnes in January 2021 to $434/tonnes on March 7, 2022.

Additionally, the Russian ban on foreign currency sales has made it difficult for Moroccan exporters operating in Russian markets to repatriate their money.

Reassuring economic operators, Ministers Bourita and Fettah Alaoui noted the government will provide them with support to overcome the present difficulties.

The meeting concluded with a collective agreement on improving Moroccan banking services to assist businesses, particularly SMEs, through the raising of the loans’ threshold part of “Tamwilcom” program and the extension of the repayment period for “Oxygène et relance” loans to up to three years.

Nasser Bourita agreed to continue the current private-public dialogue and consultation to address future developments impacting Morocco’s economic and financial ecosystems.