Speaking during a working session with the President of the General Confederation of Moroccan Enterprises (CGEM), Chakib Alj, Jazouli highlighted the situation of investment in Morocco which has, for more than year, one of the highest investment rates in the world, which stands at around 30% of GDP.

Exceeding the world average which is 20%, this rate has been growing steadily since 2010, with an annual increase of 3%, said Mr. Jazouli who noted, however, a lack of efficiency that can be explained mainly by a preponderance of public investment which represents 2/3 of investments whereas it represents most of the time less than 15% elsewhere.

This observation is also explained by the trend of private investment which is not sufficiently oriented towards sectors creating jobs and added value, observed Mr. Jazouli during this first meeting with the employers association aiming to develop a joint roadmap with the objective of revitalizing private investment, meeting the challenge of economic recovery and finally, establishing Morocco as a flagship destination for national and international investments.

To deal with this issue, the Minister highlighted the record level of public investment provided for by the 2022 Finance Bill, which stands at 245 billion dirhams and which will revive the economic dynamic and serve as a locomotive for the national private sector.

He also focused on the permanent improvement of the business environment through the modernization of the legal and regulatory framework, the simplification and digitization of administrative procedures, as well as support in the financing of investment projects through, among other things, the activation of the Mohammed VI Fund for investment.

For his part, Mr. Alj emphasized the content of the White Paper drawn up by CGEM as part of its contribution to the operationalization of the economic component of the New Development Model (NMD) which insists on the establishment a framework favorable to the increase in national and international private investment, with the ambition of reaching a share of 65% in terms of private investment by 2035, against 35% currently.

This document, presented three weeks ago, sheds light on several concrete measures to establish a more competitive business environment and offers recommendations on three major themes, namely access to finance, the cost of production factors and the simplification of procedures.

Regarding access to financing, the CGEM recommends the creation of a public investment bank oriented towards Very Small, Small and Medium Enterprises (TPME), as well as the injection of quasi-equity into companies affected by the crisis and operating in strategic sectors.

Regarding the reduction of the cost of production factors, which is a major issue for Morocco as an investment destination, the CGEM proposes to intervene on the revision of the price of energy, the facilitation of access to quality and competitive land and the establishment of new tax incentives.

Source: Agency Morocaine De Presse