$ 700 million invested in human capital and economic transformation
This new partnership framework will guide, assist financially and technically Morocco over the next 6 years.
The World Bank Group Board of Directors has just given the go-ahead for a new partnership framework with Morocco. Indeed, this framework will guide, assist financially and technically Morocco over the next 6 years. According to the WB, Moroccan society is experiencing a positive dynamic in terms of urbanization and demographic transition enabling it to achieve strong and inclusive growth. "Morocco has achieved significant economic and social progress, which has increased the aspirations of the population, especially among young people," said Marie Françoise Marie-Nelly, director of operations of the World Bank for the Maghreb, specifying that the Moroccan authorities have launched ambitious plans to meet these aspirations, and their initiatives will be fully supported by the World Bank Group. "Morocco has great potential. To achieve this, it must invest in young people to give them the skills they need to be the engine of economic transformation. And it must promote the dynamism of the private sector, the key to creating jobs, " adds Marie Françoise Marie-Nelly.
What does this partnership consist of?
According to the World Bank, this Country Partnership Framework (CPF) 2019-2024 aims to support "Morocco's ambition to strengthen its competitive advantage in the global economy while promoting shared prosperity within its region. population " . As part of this partnership, the bank also announced that its directors have "endorsed a project of € 611.3 million (equivalent to $ 700 million) to help Morocco accelerate growth. adoption of digital technologies in order to make them a source of jobs, growth and better services, and to provide an essential basis for driving economic transformation in North Africa and more generally on the African continent " . The new CPF is divided into three strategic lines of action. The first is job creation in the private sector. The second axis aims to strengthen human capital. The last axis is to promote resilient land use planning that benefits everyone. In this scheme, governance and citizen participation, gender equality and digital are seen as cross-cutting priorities between the different axes.
Private financing, education and equitable distribution of infrastructure …
In terms of entrepreneurship, the bank notes that Morocco has made steady progress in recent years in terms of its ranking in the Doing Business index, nevertheless small and medium-sized enterprises continue to face obstacles that hamper their growth and their ability to create jobs. In this sense, the first axis will make efforts to increase competition to improve the business environment, especially for SMEs. To achieve this, the CPF will exploit the strengths of all the institutions of the Group (IBRD, IFC and MIGA) in order to optimize the resources available to Morocco for its development by appealing to the private sector in terms of financing and viable solutions.
On the IFC side, this one will work with "MIGA and IBRD to foster private sector participation in key sectors such as infrastructure, regional development, education, capital markets and digital finance, thus striving to combine risk reduction instruments offered by the World Bank Group, " explains Xavier Reille, IFC operations manager for Algeria, Morocco and Tunisia, adding that IFC will also boost its financial support and advisory services to harness the full potential of the private sector for job creation and inclusive growth. In its second strategic axis, this partnership is based on strengthening human capital. The challenge will be to equip Morocco with the necessary skills to compete in the global economy. Thus, Morocco will need to invest more in early childhood development and quality education at all stages to ensure the transformation of the economy. This partnership also targets the least developed regions in its third axis, promoting the equitable distribution of infrastructure and services across the country. It will be a question of improving the management of water resources and strengthening Morocco's resilience to the shocks caused by climate change, by ensuring that people in all regions of the country have the necessary resources and capacities to cope with climate change. to their consequences.
New technologies as a lever for transforming the economy
Digital and new technologies are key factors in the transformation of the economy. As part of this partnership, the goal will be to harness the potential of new technologies to promote entrepreneurship, productivity and e-government platforms.
This initiative will therefore focus on supporting the development of an inclusive financial sector and a competitive digital economy, and will address the economic and social integration issues that particularly affect young people, women and rural populations. . The program "will also support the adoption of reforms that will develop the infrastructure and digital platforms needed to expand the use of mobile payments and increase competition among digital providers.
Digital entrepreneurship is at the heart of the program, which will strive to do more to facilitate the creation of online businesses and improve access to finance to unleash the potential of Moroccan digital start-ups ", says Djibrilla Issa, Senior Financial Sector Specialist and Project Team Leader.