International Report: Morocco Can Unlock the Potential of the Private Sector and Create Over 106,000 Jobs
Significant Opportunities for Job Creation in Morocco’s Private Sector
A report published by the International Finance Corporation highlights a crucial opportunity for Morocco to enhance the role of the private sector in its economy and boost job creation, with a potential estimate of over 106,000 jobs in the medium term.
Positive Economic Dynamics Despite Shocks
Titled "Morocco: Diagnosis of the Private Sector," the report points out that the Kingdom has made notable progress over the past decade. Real GDP has increased by approximately 25% between 2014 and 2024, while per capita income has risen by more than 10%, despite facing multiple external shocks.
Limited Role of the Private Sector
The document emphasizes that Morocco has entered a new phase of development based on a new development model and ambitious sector strategies, aiming to increase the share of private investment to 30% of national investment. However, foreign direct investment flows remain relatively low, averaging about 1.5% of GDP between 2019 and 2023.
Four Sectors with High Potential
The report identifies four priority sectors capable of attracting significant investments: decentralized solar energy, low-carbon textiles, argan-based cosmetics, and marine aquaculture. These sectors could mobilize up to $7.4 billion in investments and create thousands of jobs while supporting the country’s energy and industrial transition.
Detailed Sector Opportunities
In the decentralized solar sector, the potential is estimated at $2.9 billion, which could create over 43,000 jobs, provided that regulatory reforms are implemented. The low-carbon textile sector could draw in $1.9 billion and create around 30,000 jobs through circular economy practices. Argan-based cosmetics could generate $600 million and nearly 17,700 jobs, while marine aquaculture could mobilize $1.96 billion and create approximately 75,000 jobs.
Essential Reforms Needed
The report underscores the necessity for structural reforms: administrative simplification, improved access to financing, skills enhancement, and infrastructure development.
A Strategic Turning Point for the Moroccan Economy
In conclusion, the document asserts that Morocco is at a pivotal moment in its economic transformation, where leveraging the private sector could become an essential driver of growth and job creation.
