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The results of the head of government, Aziz Akhannouch, are relatively consistent with his promises at the start of his mandate in 2021. He has only partially achieved the objectives set out in the past, in particular by safeguarding the purchasing power of consumers by preserving electricity prices, in order to support the production costs of businesses, particularly in industry, and to preserve jobs. Likewise, the launch of railway lines “High-speed lines”, hydraulic infrastructure, gas pipelines and sports complexes, only places Morocco in a positive dynamic.
During the mid-term review, the head of government, Aziz Akhannouch, provided a panoramic assessment, indicating that the State is committed to repaying the arrears of value added tax credits owed by the State to companies, for a cumulative amount of 20 billion dirhams. This measure allowed SMEs to quickly have liquidity. Through this act, the government sent a strong signal of confidence, benefiting all sectors, particularly SMEs. Faced with the global surge in energy prices, the government has chosen to preserve electricity prices, in order to support companies’ production costs and preserve jobs. The agricultural sector aid program has extended the support approach to the rural world.
From 2022, the government has put in place exceptional aid for transport professionals, thus preserving the prices of everyday consumer products and services, including urban and passenger transport.
New national investment charter
The new investment charter was adopted in the first year of the mandate. It will help create stable jobs and reduce territorial disparities, by encouraging investors to set up in the most disadvantaged regions. In addition, 170 agreements and amendments were approved for a total amount of 220 billion dirhams and 115,000 new jobs. The State is accelerating its investment effort and playing the role of locomotive. Indeed, budgetary credits dedicated to investment increased from 245 billion dirhams in 2022 to 335 billion dirhams in 2024.
Regarding the strategic projects launched, we note the construction of “High Speed Line” railway lines, a very high voltage electrical connection from the southern provinces, hydraulic infrastructures, gas pipelines and sports complexes. These major projects have brought the Kingdom into a new era, with the creation of new employment opportunities in the construction sector. The acceleration of the operationalization of the Mohammed VI Investment Fund, to make it a lever for private sector investments, and the implementation of a global and strategic reform of public enterprises. The government has accelerated advanced regionalization and public procurement reform.
All these reforms constitute a locomotive for interacting with the various transformations underway and for increasing and encouraging investments. This constitutes a positive path that will be beneficial in the long term. Likewise, Morocco is committed to a set of projects with a strategic dimension by 2030, including the creation of high-speed lines and a double very high voltage line which will connect the city of Dakhla to the center of the Kingdom. . As well as the strengthening of main hydraulic infrastructure and the completion of gas pipelines and football sports facilities to host the CAN 2025 and the World Cup.
Implementation of a colossal investment plan and its socio-economic impact
The government believes that the solution to overcoming the economic crises lies in doubling investments, both public and private, and in adopting the necessary measures to support national and foreign investments, as well as to stimulate investments by Moroccans residing abroad. ‘stranger. The investment volume is estimated at more than 200 billion dirhams, as part of a partnership between the public and private sectors, which will create new employment opportunities, strengthen training in required skills and contribute to economic diversification.
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The rationalization of public investment and the stimulation of the private sector made it possible to reverse the trend of inflation and reduce the prices of food products, despite the consequences of the drought. Several measures and programs have been launched, including employment programs to mitigate the effects of the health crisis. More than 221,000 job opportunities have been created under the “ Awrach », for a total budget of 4.5 billion dirhams. The Forsa program supported 21,000 young entrepreneurs with projects, with a budget of 2.5 billion dirhams. In addition, the stability of electricity prices has been maintained to cope with the increase in global prices, with a budget of 9 billion dirhams over two years.
VAT was reduced from 20% to 10% on basic consumer products and pharmaceuticals, and customs duties on wheat were suspended to cope with rising world prices, as well as on sheep to restructure the national livestock.
The government is aware of the need to link investment prospects to the creation of decent job opportunities in sectors of the future, such as renewable energies, the electric automobile industry, green hydrogen, agri-food and fertilizers. Morocco has an integrated charter to encourage private investment, carried out in record time, which represents a qualitative leap to position the country in its regional, continental and global environment.
The roadmap for the “business climate” will activate the implementation of the National Charter of Administrative Decentralization, complete the reform of regional investment centers and simplify administrative procedures for the benefit of citizens and businesses. With regard to social dialogue, the government will insist on the necessary adaptation of the legal labor framework, including the implementation of the institutional framework of the strike and the revision of the labor framework. The main objective of these measures will be to improve the social climate, fight against informality and promote decent employment.
The implementation of relevant recommendations from the national tax conference aims to modernize and simplify activity taxation. With this in mind, the government is committed to proposing a progressive reform of income tax, for greater tax fairness, in order to encourage investment and job creation.
