M O R O C C A N E C O N O M Y P E R F O R M A N C E S A N D P R O S P E C T S

Transcription

1 ROYAUME DU MAROC Ministère de l Economie et des Finances M O R O C C A N E C O N O M Y P E R F O R M A N C E S A N D P R O S P E C T S D E P A R T M E N T O F T R E A S U R Y A N D E X T E R N A L F I N A N C E Jilali KENZI Deputy Director Treasury department and external finance

2 P L A N INTRODUCTION I. MOROCCAN ECONOMY IN RECENT YEARS II. III. ACCELERATION OF STRUCTURAL TRANSFORMATION OF THE MOROCCAN ECONOMY STRENGTHENING ECONOMIC AND SOCIAL INCLUSION I 2

3 M O R O C C O AT A G L A N C E GEOGRAPHY CAPITAL Km 2 AREA 3500 Km COASTLINE RABAT POPULATION 33,8 millions Demographic Growth +1,25% ( ) NATURAL RESOURCES Phosphates 75% of the world reserves, Coal, Lead, Silver, Gold, Zinc, Copper, Cobalt, Iron ECONOMIC GROWTH 4,2% in 2017 INFLATION 1,4% on average RATING S&P : BBB-/Stable Fitch : BBB-/Stable A STRATEGIC LOCATION IN NORTH AFRICA COMMITMENT TO REFORMS A MAGNET OF FDI 14 km A STABLE AND DYNAMIC ECONOMY A GATEWAY TO AFRICA CURRENCY April 30 th 2018 Moroccan DIRHAM 1 USD = MAD 1 EUR = MAD I 3

4 ENHANCED RESILIENCE TO EXOGENOUS SHOCKS MOROCCO showed great resilience to crisis thanks to productive diversification, the emergence of new business and the conduct of a countercyclical macroeconomic policy to support domestic demand ; MOROCCO was able in 2011 to cope with the requirements arising from the "Arab Spring" by accelerating political and social reforms that culminated in the adoption of a new constitution ; MOROCCO is committed to strengthen the competitiveness of its economy, deepen structural reforms and relations with high growth potential markets such as emerging countries and African and Arab countries. I 4

5 M O R O C C O K N O W S D E E P T R A N S F O R M A T I O N P Illiteracy rate 43 % 32,2 % Primary school 87 % 99,1 % Motorway network 526 km km Rural Electrification 72 % 99,2 % Mobile penetration 21 % 126 % Bank penetration 34 % 70 % AMO Coverage Health insurance 0 % 70 % (2015) Number of tourists 4,5 millions 11,4 millions Automotive production 10 thousands units 376 thousands units GDP per capita PPA $/hab $/hab (2016) I 5

6 P L A N INTRODUCTION I. MOROCCAN ECONOMY IN RECENT YEARS II. III. ACCELERATION OF STRUCTURAL TRANSFORMATION OF THE MOROCCAN ECONOMY STRENGTHENING ECONOMIC AND SOCIAL INCLUSION I 6

7 S AT I S FA C T O R Y G R O W T H I N A N A D V E R S E I N T E R N AT I O N A L C O N T E X T Economic Growth in % Some comparisons in % GDP annual average of the period ,9 5,2 4,0 3,5 3,7 4,5 4,5 3,5 4,2 4,2 3,3 3,1 3,8 3,0 2,6 2,2 1, (P) MENA Morocco Egypt Jordan Turkey Algeria Tunisia Acceleration of the Moroccan economic growth which rose from an annual average of 3,1% between 1991 and 2000 to 4,4% between 2001 and 2017 ; The economic growth remained satisfactory since 2008 despite the deterioration of the foreign demand in connexion with the international economic crisis ; A gradual reduction of the Moroccan economy dependence towards weather conditions through the modernization of the agricultural sector (with the lunch of PMV : AAV +9,3% between 2008 and 2015 against +3,2% between 2000 and 2007) and the promotion of the non agricultural activities. I 7

8 S AT I S FA C T O R Y G R O W T H I N A N A D V E R S E I N T E R N AT I O N A L C O N T E X T C o n t r i b u t i o n t o g r o w t h (in points) Investment / Consumption / Trade balance 7,8 D i v e r s i f i c a t i o n o f g r o w t h s o u r c e s 1998 / 2016 Shares in % 6,1% 5,7% 5,0% 5,0% 4,2% 5,6% 10,3% 10,4% 5,1-6,9 4,4 2,6 0,9 1,9-1,0-0,6 3,5 3,8 4,1-2,1-0,7-0,3 1,8 2,8 2,3 1,2-0,8 0,3 3,6 0,3 1,9 2,6 2,4 2,4 1,2-4, * * Quarterly average Food Agro-industrie Industry Tourism Tourisme BTP Buildings / Immo& Services Business aux Public works entreprises services D i v e r s i f i c a t i o n o f F D I s e n s o r s 1998 / % 30% 2% 6% 24% 29% Industry Industrie Commerce Trade BTP Buildings / Immo & Public Energie Energy works Growth driven by sustained domestic demand through : - Enhancing the level of consumption (employment and income improvement, low inflation ) ; - Intensive capital accumulation with an average investment rate around 34% of GDP, one of the best performances of the MENA region (low interest rates, structural projects). This economic performance is related to the promotion of traditional sectors and the emergence of new businesses with high growth potential. 4% 8% I 8

9 S T R U C T U R A L D I V E R S I F I C AT I O N O F M O R O C C A N E X P O R T S I N TERMS O F PRODUCTS Internal ring : 2007 / External ring 2017 I N T E R M S O F GEOGRAPHICAL ZONES* Automotive 24% 4% 4% Electronics Aeronautic Other Textile industry 15% 27% 24% 12% 6% 2% 11% 13% 5% 14% 4% Phosphates derivatives Phosphates Asia America 10% 8% 9,6% 7,8% 5% 76% 70% Other products 22% 13% Food Africa 10% Europe * Data of November 2017 Significant growth in the new technologyintensive products related to Morocco s emerging sectors ; Increased share of exports with higher added value. Europe remains the main destination of exports ; Doubling of the African market share ; Consolidation of the market shares of America and Asia. Source : Exchange office I 9

10 V E R Y G O O D E X P O R T S P E R F O R M A N C E O F M O R O C C O S E M E R G I N G S E C T O R S In Billion MAD AUTOMOTIVE ,2 31,5 54,6 58,6 48,8 40,3 Average growth % +18,7 TEXTILE and LEATHER 33,0 31,9 33,5 33,0 35,3 37,5 % +2,6 FOOD INDUSTRY 18,6 20,1 22,0 25,0 30,0 32,1 % +11,6 AERONAUTIC ELECTRONICS 6,7 7,2 7,0 8,2 9,2 11,1 7,0 6,9 8,0 7,9 8,4 9,1 Source : Exchange office % +10,7 % +5,3 This evolution will be enhanced through the implementation of ecosystems set up in the context of Morocco s industrial acceleration strategy (49 ecosystems since 2014 covering 14 exporting sectors). I 10

11 A G R O W T H A C H I E V E D I N A N O N I N F L AT I O N A R Y E N V I R O N M E N T C O N T E X T E N O N I N F L AT I O N N I S T E Inflation rate Food products / Non food products : in % 1,9% 1,6% 1,6% 1,3% 0,9% 2,3 2,4 0,4% 2,7 2,7 0,7% 1,4 1,7 1,5 1,4 0,6 0,5 0,7 0,7 0,1 Some comparisons in % Inflation rate in ,5 10,9 5,5 4,5 3,3 0,7-1,1 Egypt Turkey Algeria Tunisia Jordan Morocco Source: FMI The control of inflation through : (i) the conduct of an appropriate and coordinated monetary policy with fiscal policy and (ii) increased competition in the productive system and ongoing effort aimed at supporting some basic products prices. D I R E C T I O N D U T R E S O R E T D E S F I N A N C E S E X T E R I E U R E S I 11

12 G R O W T H L E A D I N G T O S O C I A L I N D I C AT O R S I M P R O V E M E N T Unemployment rate in % : URBAN / NATIONAL 18,4 GDP per capita in PPP $ 15,5 14,7 13,7 13,4 14,8 14,2 14,7 10,8 9,7 9,6 9,1 9,0 9,9 9,9 10,2 x 2, Unemployment rate in % ,4 11,7 11,0 12,2 15,3 Morroco Algeria Turkey Egypt Tunisia Improvement of the labor market due to various measures undertaken by the public authorities to enhance the flexibility of the labor market in order to ensure a match between training and companies needs as well as the promotion of entrepreneurship and self-employment ; Improvement in citizens standard of living which is reflected in the increase of 4,6% annual average of GDP per capita over the last years. Decrease of the poverty rate by two thirds moving from 15.3% in 2001 to 4.8% in 2014 I 12

13 S I G N I F I C A N T I M P R O V E M E N T O F C U R R E N T A C C O U N T D E F I C I T (E) C U R R E N T A C C O U N T D E F I C I T O F T H E B P - I N % o f G D P - -2,1% -4,2% -3,6% -6,0% -9,5% -7,9% This improvement is a result of the mitigation of the trade deficit, linked to the good performance of exports and the decrease of energy bill. I 13

14 M O R O C C O I S A F R I C A' S S E C O N D M O S T AT T R A C T I V E C O U N T R Y O F F D I in Billion MAD 36 b i l l i o n M A D / y e a r 30 b i l l i o n M A D / y e a r +38,9% +23,1% +21,8% -6,5% +9,2% -21,3% -0,2% Inflows of FDI -9,7% 25,2 35,1-25,7% 26,1 32,1 39,1 36,6 39,9 31,4 31,4 Despite the unfavorable international and regional context, Morocco has preserved its attractiveness of foreign investors ; The FDI inflows reached a high level in 2015, around 40 billion dirhams particularly in the sectors of industry and real estate ; Investments in the industrial sector, largely of European origin, are concentrated particularly in the automotive and aeronautical sectors with the projects of major international groups ; Investments in the real estate sector come mainly from the United Arab Emirates and Saudi Arabia. I 14

15 C O N T I N U E D I M P R O V E M E N T S I N T H E F O R E I G N E X C H A N G E R E S E R V E S N E T I N T E R N A T I O N A L R E S E R V E S I n m o n t h s o f i m p o r t s 6M 27J 6M 27J 4M 2J 4M 12J 5M 8J 6M 21J 6M 25J 6M I n M A D b i l l i o n Strengthening of foreign exchange reserves to a comfortable level which covers 6 months import despite the limited recourse to external debt. I 15

16 F L E X I B I L I T Y OF FISCAL POLICY In % of GDP 1- Deficit reduction phase 2- Surplus phase 0,4 3- Counter- cyclical Phase 4- Recovery Phase 0,0-2,1-2,1-4,2-4,0-5,1-4,6-5,1-4,7-4,2-4,5-3,5-6,5-7, I 16

17 T H E C O N D U C T O F C O U N T E R - C Y C L I C A L F I S C A L P O L I C Y B E T W E E N AND Public investment in billions MAD - Subsidy costs in billions MAD billion MAD 144 billion MAD 330 billion MAD 116,3 X 2 135,0 162,3 167,3 188,3 72 billion MAD 116,3 X 2 135,0 162,3 167,3 188,3 58,7 71,0 83,9 58,7 71,0 83, Other measures were put in place, namely : Improving income through income tax reform and wages increase; Budget support to sectoral strategies, infrastructure projects and structural reforms; Export insurance mechanism reform to encourage companies to expand to new markets especially in Africa and Middle east; Supporting vocational training and promoting Small and medium entreprises and micro and small entreprises. I 17

18 ZOOM ON MEASURES TAKEN TO CONTROL SUBSIDY COSTS : Application of a partial pass-through of higher international prices on the price of some energy products (+ 1 MAD / l for gasoil and + 2MAD / l for the premium gasoline) in June 2012, which led to a saving of almost 8 billion MAD (over a full year); Introduction from September 2013 of a system of partial indexation of the prices of some petroleum products and an operation of hedge exposure to fluctuations in the price of diesel ; Progressive decompensation of diesel and total decompensation of the premium gasoline in 2014; Total removal of subsidies for liquid petroleum products (industrial fuel, petrol, diesel) from January 1st 2015 ; Liberalization of prices of liquid petroleum products from December 1st, 2015; Replacement of fuel subsidies for the production of electricity by direct transfers to the ONEE, which will be phased out until their elimination in ACCOMPANYING MEASURES: B U D G E T D E F I C I T O N A R E C O V E R Y PAT H S I N C E Strengthening mechanisms for targeting disadvantaged populations (Medical coverage / school attendance / Widows in precarious situations / Persons with disabilities...); Deployment of a conventional system of support of transport sector modulated according to the specificity of each type of actor (Initially, the compensation will cover the 1st and 2nd categories of taxis and buses). CONTROL OF EXPENDITURE THROUGH SOME MEASURE: Rationalization measures have been taken to adjust the level of appropriations to the operational capacity of the administration : Measure of freezing 15 billion MAD of investment credits from march 2013 aimed at influencing the level of carryovers ; Measure concerning the advancement to October 31st the deadline for undertaking proposals; Prioritization of productive investment projects. In terms of administrative expenses: Control, since 2013, of the wage bill at the level of the appropriations provided for by the Finance Act, notably through the institution of the limiting nature of these credits ; Rationalization of expenses related to the administration's lifestyle. I 18

19 13 sem 26 sem 52 se m 2 ans 5 ans 10 ans 15 ans 20 ans 30 ans T R E A S U R Y D E B T % of GDP S T A B I L I Z A T I O N O F T H E T R E A S U R Y D E B T +0,6 pt T R E A S U R Y B O N D S A V E R A G E Y I E L D R A T E : / ,29% 3,69% 4,00% 3,86% 4,41% 4,31% 64,5% 64,7% 64,1% 63,5% 61,7% 58,2% 52,2% 49,0% 46,1% ,75% 2,54% 3,08% 3,20% 2,38% 2,17% 2,19% 2,74% 2,34% 2,45% 2,10% 2,15% 13 w 26 w 52 w 2 Y 5 Y 10 Y 15 Y 20 Y 30 Y D O M E S T I C D E B T A V E R A G E M A T U R I T Y 6Y 6M 6Y 4M 6Y 3M 5Y 9M 5Y 3M 5Y 2M 4Y 11 M 4Y 8M 4Y 5M sep-17 The decline in the level of the budget deficit contributed to the reduction in the rate of increase in the debt ratio, which rose from an average increase of 3,5 points between 2009 and 2013 to +0,6 point in 2014 ; At the end of 2017, the debt ratio decreased slightly by 0.2 points to 64,5% ; 76% Repositioning of the Treasury on medium and long maturities, which resulted in the extension of the average life of the domestic debt by almost 2 years between 2013 and I 19

20 C O N S O L I D A T I O N O F M A C R O E C O N O M I C S T A B I L I T Y A T M E D I U M T E R M F O R E C A S T E C O N O M I C G R O W T H % change 3,0% 4,5% 2,7% 4,5% 1,2% 4,2% 3,2% 4,4% 4,6% 4,8% C U R R E N T A C C O U N T % of GDP -9,5% -7,9% -6,0% -2,1% -4,2% -3,6% -3,6% -2,9% -2,1% -1,4% B U D G E T D E F I C I T % of GDP T R E A S U R Y D E B T % of GDP ,8% -5,1% -4,7% -4,2% -4,5% -3,5% -3,3% -2,7% -2,4% -2,0% 58,2% 61,7% 63,5% 64,1% 64,7% 64,5% 64,6% 63,7% 62,5% 60,9% 1 - C O N S O L I D A T I O N O F M A C R O E C O N O M I C B A L A N C E S A N D R E C O N S T I T U T I O N O F M A N E U V R E M A R G I N S ; 2- S T R E N G T H E N I N G P O T E N T I A L G R O W T H A N D I T S I N C L U S I V E C H A R A C T E R I 20

21 C O N S O L I D A T I O N O F M A C R O E C O N O M I C S T A B I L I T Y O V E R M E D I U M T E R M PURSUIT OF MAJOR STRUCTURAL REFORMS Subsidies reform : Liberalization of liquid petroleum product prices and strengthening of social programs Implementation of the Organic Budget Law : Introduction of the obligation of efficiency and performance in public expenditure management Pension reform : Sustainability of pension plans Tax reform : Fair tax system aimed at supporting the competitiveness of the economic fabric and the fight against fraud and the Informal sector Improving public investment efficiency : Prioritization of public investment projects (Adoption of the PIM approach) and operationalization of PPPs Reform of the exchange rate regime : Strengthening resilience to exogenous shocks and supporting competitiveness of the economy I 21

22 P L A N INTRODUCTION I. MOROCCAN ECONOMY IN RECENT YEARS II. III. ACCELERATION OF STRUCTURAL TRANSFORMATION OF THE MOROCCAN ECONOMY STRENGTHENING ECONOMIC AND SOCIAL INCLUSION I 22

23 A C C E L E R AT I O N O F S T R U C T U R A L TRANSFORMATION OF THE MOROCCAN ECONOMY 1 S t r e n g t h e n i n g b a s i c i n f r a s t r ucture 2 E x p a n d i n g s e c t o ral s t r a t e gies 3 S t r e n g t h e n i n g t h e c o m p e t i t i v e n e ss o f the national e c o n o m y I 23

24 1 - S T R E N G T H E N I N G B A S I C I N F R A S T R U C T U R E H I G H WAY S 1773 km motorway network open to traffic currently against 526 km in 2004 P O R T S 30 ports including 13 international ports Completion of the 2 nd phase of TANGER MED port (8 million containers annually) A I R P O R T S 15 International Airports (Casablanca airport : 1 ST Europe-Africa hub) P o r t T a n g e r M E D 4th container port in the Mediterranean 46th container port in the world (Top 20 in 2018 ) 1st port of new cars in Africa Connected to 169 ports, 68 countries, 5 continents Serves weekly 35 ports, 22 West African countries Rotterdam in 3 days / North America 10 / China 20 ESSAOUIRA CASABLANCA EL JADIDA SAFI AGADIR RABAT TANGIER MARRAKECH FES OUARZAZAT E OUJDA AIN BENI MATHAR R A I LWAY 2,109 kilometres and 30 million passengers 1 st High Speed line (TGVM) in Africa on 2018 Tangiers-Casablanca (1,8 billion ) U T I L I T I E S Energy potential : supply chain security / Renewable energy / Energy efficiency / Water and sanitation sector / Rural electrification program... DAKHLA LAAYOUNE Railway network Highway New generation Industrial Zones Sea ports International airports Public universities Solar Power Wind Power Hydro power I 24

25 2 - E X P A N D I N G S E C T O R A L S T R A T E G I E S 2.1- Accelerating the industrialization process through the industrial acceleration plan Developing the green economy through renewable energy development programs 2.3- Improving logistics competitiveness through the logistics strategy Reinforcing OCP focus on the fertilizers industry and its repositioning on the African market 2.5- Continued implementation of sectoral strategies : PMV 2020 / Halieutis / Tourism 2020 I 25

26 2-1 A C C E L E R AT I O N O F T H E I N D U S T R I A L I Z AT I O N P R O C E S S A M B I T I O U S I N D U S T R I A L A C C E L E R A T I O N P L A N Raising industrial sector share in GDP from 14% to 23% by 2020 ; Creation of 500 thousand jobs (288,126 jobs were created between 2014 and 2017 and 447,896 are engaged) ; Reconfiguration of the industrial sector into integrated ecosystems ; Targeting sectors with comparative advantages. MAIN SECTORS : Automotive industry / Aeronautics / Textile and leather / Offshoring / Electronic / Chemistry and Para-chemistry / Pharmaceutical industry About 177 automotive industry companies based in Morocco 2nd manufacturer in the continent MAIN GROUPS : RENAULT, SNOP, GMD, BAMESA, DELPHI, YAZAKI, SEWS, SAINT- GOBAIN, PSA Peugeot Citroën KEY OBJECTIVES : Increase local integration rate at 80% through the development of ecosystems driven by FDI and production of 600,000 cars and 200,000 engines. About 115 aeronautic industry companies 17% average annual growth since 2010 MAIN GROUPS : BOMBARDIER, EADS, BOEING, SAFRAN, LISI AEROSPACE, LE PISTON FRANÇAIS, DAHER, SOURIAU, RATIER FIGEAC, EATON, AEROLIA, LES ATELIERS DE LA HAUTE GARONNE, ALCOA KEY OBJECTIVES : Increase the local integration rate to 35% from 18% currently About 1,200 textile and leather industry companies 7% of industrial value added STRATEGIC ACTIVITIES : Technical Textile, Fast Fashion, Denim, Home Textile & Knitting MAIN GROUPS : FRUIT OF THE LOOM, DÉCATHLON KEY OBJECTIVES : + 5 billion MAD of export sales, Attract +70 locomotive ecosystem investment projects I 26

27 2-2 D E V E L O P M E N T O F T H E G R E E N E C O N O M Y A N A M B I T I O U S R E N E WA B L E ENERGY STRAT E G Y One dedicated actor in charge of developing a renewable energy ecosystem relying on an attractive investment framework 1 2 Reduction of energy dependence Securing energy supply 3 Sustainable green growth S U C C E S S F U L I M P L E M E N T A T I O N Solar power Wind power TARGET : Reach 42% of installed About 2000 capacity MW by 2020 : of installed capacity 6,000 MW equally divided between solar, wind and hydro developed or under development in 2016 Hydro power More ambitious target set 52% installed capacity by 2030 Pipeline of projects more than 10,000 MW by public and private sectors I 27

28 2-3 E N H A N C I N G L O G I S T I C S C O M P E T I T I V N E S S L O G I S T I C S S T R AT E G Y SMART CITY Reduction of logistics costs from 20% to 15% and generation of 15 to 20 billion MAD additional ; Development and implementation of an integrated national network of multi-flow logistics zones ; Contribution to the sustainable development of the country via reducing CO2 emissions linked to road transport of goods by 35% and decongestion of roads and cities ; Creation of 70 logistics zones in 28 cities on 1,080 ha by 2030 (Morocco has 600 ha of logistics areas at the end of June 2016) About 2000 MW of installed capacity developed or under development in 2016 I 28

29 2-4 O C P F E R T I L I Z E R A C T I V I T Y M AKING O C P THE WORLD'S T O P P R O D U C E R O F F E R T I L I Z E R S Raising annual production capacity by nearly 12 million tons (MT) 140 billion MAD investment by 2020 Target for fertilizers (40% of market share in 2020) Targeting the African market through the signing of conventions with : Rwanda, Tanzania, Ethiopia, Nigeria... Cumulative fertilizer sales in Africa Of Millions de DH X 8, Share of Africa in export sales OCP FERTILIZER 0,6% 25,4% I 29

30 2-5 P U R S U I T O F O T H E R S E C T O R A L S T R A T E G I E S P L A N M A R O C V E R T H A L I E U T I S S T R AT E G Y VISION The implementation of the PMV should generate 1 to 1.5 million jobs, with annual GDP ranging between 70 and 100 billion MAD ; Mobilizing a private investment fund of 31 billion MAD since 2008 ; Promoting public investment from 3,8 billion MAD into 8,8 billion MAD ; Launch of more than 600 projects of solidarity farming benefiting 730,000 farmers, operating 753,000 ha; Increase of agricultural GDP from 65 bn MAD before 2008 to 110bn MAD in 2016; Enhanced empowerment of agricultural value added (a 75% drop in the cereal harvest led to a decline of 8% in AVA in 2016 compared to 20% in 2007 and 41% in 1995). Modernizing different segments of the fisheries sector to reach a GDP of 21.9 billion MAD by 2020 ; Implementation of investment programs to upgrade port equipment and superstructures for a total investment exceeding 1 billion MAD ; Creation of direct jobs which represents 79% of the target ; A fishery production of tons, representing 84% of the planned production Exports of fishery products of 2 billion $. Provide Morocco with a solid, diversified and balanced tourism sector ; Increase the share of tourism GDP in GDP by 2 points to reach 150 billion MAD against 56 billion MAD in 2010 ; 43 billion MAD of investments which represents more than 30% of the set target of 150 billion MAD ; Launch of more than 200 new airlines ; Emergence of new tourist areas such as Casa-Rabat, Tangier-Tetouan and Dakhla. I 30

31 3 - S T R E N G T H E N I N G T H E C O M P E T I T I V E N E S S O F T H E N A T I O N A L E C O N O M Y 3.1- Conducive framework for investment and exports : Liberalized capital account for non-resident transactions ; Overhauling the Investment charter ; Free Zones with preferential regimes, Offshore areas and the Casablanca Finance City ; Free trade and investment protection agreements concluded with a large number of countries Improving business environment : Strengthening the positioning of the National Business Environment Committee (NBEC) as the only platform for public-private dialogue through the simplification of administrative procedures related to the promotion of private investment: Strengthening of institutions in charge of good governance and promotion of ethics ; Implementation of a strategy to fight against corruption ( ) ; Deepening of the modernization of public administration ; Reform of Justice: Consolidation of its Independency Continued modernization of the financial sector to support investment dynamics through the diversification of financial instruments, the strengthening of the stock exchange and the consolidation of the Casablanca finance city; 3.5- Increasing support to companies, through the setting up of special fund aimed at accompanying start-ups and innovative projects. I 31

32 P L A N INTRODUCTION I. MOROCCAN ECONOMY IN RECENT YEARS II. III. ACCELERATION OF STRUCTURAL TRANSFORMATION OF THE MOROCCAN ECONOMY STRENGTHENING ECONOMIC AND SOCIAL INCLUSION I 32

33 S T R E N G T H E N I N G E C O N O M I C A N D S O C I A L I N C L U S I O N T S O C I A L E Consolidation of National Human Development Initiative achievements and further promotion of its programs to address social deficits and the development of marginalized areas; Tackling territorial and social disparities through : The launching of the Royal program to support the rural communities : Reduce the deficits in infrastructure and basic social services (education, health, water, electricity, rural roads, etc.); 20,800 projects, dedicated to more than 12 million citizens, living in more than 24 thousand Douars, with an overall budget of 50 MM.DH; Integrated action plan, based on partnership between the different ministerial departments, the institutions concerned, the regional and local councils and the INDH. The effective implementation of advanced regionalization since Targeting programs for disadvantaged categories of the population : HEALTH : Extension of medical coverage to new categories (non-salaried workers, students of higher education) and improvement of the services offered under the medical assistance program (RAMED): million beneficiaries until August EDUCATION : pursuing of the "TAYSSIR" program, whose number of beneficiaries is expected to reach 736,380 students in (500 million MAD); Other disadvantaged groups: Widowed and disabled people C R E A T I O N OF A S O C I A L C O H E S I O N F U N D TO S U P P O R T T H I S P R O G R A M S. I 33

34 S T R E N G T H E N I N G E C O N O M I C A N D S O C I A L I N C L U S I O N N F O R C E M E N T D E L I N C L U S I O N É C O N O M I Q U E E T S O C I A L E Promotion of employment through The Natioanal Strategy of Employment : O B J E C T I V E Creation of jobs per year Greater integration of employment into national cross-sectoral and sectoral policies, as well as enhancing the creation of productive and decent employment ; Enhancing of human capital through upstream actions to improve the performance of initial, fundamental, technical, professional and higher education systems and enhance the employability of the workforce ; Monitoring of the targeted measures of the active employment policy and improving the functioning of the labor market through the valorization of support programs for micro-enterprises and support for self-employment, income-generating activities ; Improving of labor market governance. Implementation of various programs to reduce substandard housing; Support of very small, medium and small enterprises and integration of the informal sector; Strengthening of financial inclusion and development of micro -finance. I 34

35 C O N C L U S I O N The Moroccan economy continues to enjoy the confidence of international financial organizations and foreign investors : Successful sovereign bond issuances on the international financial market Renewal by IMF of the PLL agreement in July 2016 Morocco is ranked the 3th among 20 countries in the MENA region, and 69th in the 2018 edition of Doing business. Morocco has been ranked North Africa's first best performer according to the WEF Global Competitiveness Index (2018 Edition), fifth in Africa and 71st in the global ranking. Maintaining of the Investment Grade awarded to Morocco by rating agencies. Morocco s economic freedom score is 61.9, making its economy the 86th freest in the 2018 Index, its overall score has increased by 0.4 point. CASABLANCA FINANCE CITY : Improvement of 10 places between 2015 and 2018 : 32th in the world / 1st African (followed by Johannesburg) and 3th in the MENA region (after Dubai and Abu Dhabi), according to The Global financial centres index (GFCI) I 35

36 ROYAUME DU MAROC Ministère de l Economie et des Finances M O R O C C A N E C O N O M Y P E R F O R M A N C E S A N D P R O S P E C T S D E P A R T M E N T O F T R E A S U R Y A N D E X T E R N A L F I N A N C E Jilali KENZI Deputy Director Treasury department and external finance