Morocco develops a new strategy to boost the attractiveness of its less attractive regions
The Minister Delegate in charge of Investment, Convergence and the Evaluation of Public Policies, Mohsen Al-Jazouli, announced that the government of Morocco will give top priority to developing all the Kingdom's regions and making them more attractive to investment.
This new action plan is based on the new investment charter established in line with the directives of King Mohammed VI. In particular, this charter aims to provide regions with funding opportunities through territorial bonuses, in order to reduce the disparities between the Kingdom's provinces and prefectures in terms of investment attractiveness. Mohsen Al-Jazouli told the House of Representatives that the authorities were "currently working on a regional and sectoral strategy for the development of private investment".
According to the Minister, two categories of prefectures and provinces, "A" and "B", eligible for support have been identified, on the proposal of the Ministry of the Interior and with the approval of the Head of Government, on the basis of objective criteria. Investment projects in category "A" prefectures and provinces will receive support equivalent to 10% of the total eligible investment amount, while those in category "B" will receive support equivalent to 15%. In total, this bonus should reach 60 of the Kingdom's 75 prefectures and provinces.
In addition to this territorial bonus, the regions will for the first time have access to unified and decentralised governance, enabling them to develop, approve and sign agreements for investment projects of up to 250 million dirhams at regional level. Minister Al-Jazouli also pointed out that these projects account for the majority of investments, demonstrating the government's commitment to the success of this regionalisation policy and to strengthening the role of local players in investments.
To activate this new charter, the National Investment Committee had already met in May 2023. It approved major investment projects in eight different regions, as well as 80% of subsidies outside the Tangier-Jadida axis. As administrative procedures have been simplified, Moroccan institutions have gradually carried out structural reforms related to investment files, such as the ratification of the administrative decentralisation charter, the reform of regional investment centres and the creation of unified regional commissions for investment and digitalisation. The government hopes to mobilise 550 billion dirhams ($56 billion) in investment and create half a million new job opportunities by 2026, as instructed by King Mohammed VI.
Mohsen Al-Jazouli also stressed that, in order to develop private and public investment, Rabat now needs a new "Marshall Plan" (in reference to the plan which aimed to stimulate Europe's economic recovery after the Second World War) to develop and equip three thousand hectares of industrial zones every year. He felt that industrial estates "need a special building law instead of the building law for residential divisions". This plan would be essential to ensure a balanced labour market and to stimulate domestic and foreign investment.
All these initiatives are in line with the roadmap implemented earlier this year by the Ministry of Investment. It will continue until 2026 in order to meet the priorities for improving the market. These priorities revolve around three main pillars: improving the structural conditions for the investment and entrepreneurship process, supporting local competitiveness through financing and access to real estate and renewable energies, and developing an environment conducive to entrepreneurship and innovation.
According to Al Arab news, this initial implementation of the new investment charter is already showing a positive impact on investment in all regions of the Kingdom. By adopting an integrated and more effective policy, the government is encouraging businesses to be more active and productive, in order to offer new employment opportunities to Moroccan citizens and to local and international investors.