The Major Issues Awaiting Fatima Ezzahra El Mansouri

Fatima Ezzahra El Mansouri: A New Political Chapter for Morocco

Appointed Head of Government on September 29, 2026, and tasked with forming a new team, Fatima Ezzahra El Mansouri is set to usher in a new political era in Morocco. Her first priority will be to establish a government before implementing the economic and social agendas for this new phase.

Several ongoing issues will require either continuation or reassessment. Key areas of focus will include the 2027 Finance Bill, employment, private investment, public finance management, water resources, social protection, pensions, labor law, and industrial competitiveness. These topics are expected to shape the government’s actions.

The 2027 Finance Bill at the Forefront

The budgetary timeline will be one of the first challenges the new team will face. The preparation for the 2027 Finance Bill comes in a context where public investments continue and the need to maintain the balance of public finances remains critical.

The new team will need to align social spending, infrastructure investment, and economic financing demands with budgetary control objectives.

This challenge fits within a broader trajectory aimed at consolidating public finances. In April 2026, the Ministry of Economy and Finance adopted a Strategic Framework for Public Finance Management Reform for 2026-2032, focusing on budget performance, sustainability, transparency, digitalization, and risk management.

Employment as a Central Issue

Employment will be a significant focus in the new governmental cycle. In its 2026 assessment, the IMF notes that unemployment remains a structural challenge for Morocco and stresses the need to bolster the dynamism of the private sector and enhance the responsiveness of the labor market.

The Job Plan 2030, launched in 2025, has already emerged as a key framework in this area. It outlines measures to promote private investment, support SMEs, facilitate the professional integration of youth, tailor training to meet business needs, and foster rural employment.

The IMF also highlights ongoing difficulties concerning the alignment of available skills with business needs, as well as obstacles to the professional integration of certain groups, including youth and women.

Private Investment and Business Climate

The development of private investment represents another crucial challenge. The IMF emphasizes the need to continue implementing the Investment Charter, enhance the role of Regional Investment Centers, improve SMEs’ access to financing, and reduce regulatory hurdles that hinder business growth.

Expectations from the private sector also focus on competitiveness, the development of micro, small, and medium enterprises (MSMEs), competencies, and the internationalization of businesses. The CGEM has identified these elements among its five priorities for the economic resumption of 2026, alongside accelerating private investment and developing the national industrial base.

Competitiveness and Industrial Development

Industry constitutes another major facet of the upcoming cycle. The automotive, aerospace, battery, electronics, agro-industry, and industrial equipment sectors are now integral to the value chains being developed or consolidated in Morocco.

Beyond increasing production capacity and exports, the focus will also be on developing local content, integrating Moroccan suppliers, and upgrading businesses.

This issue ties back to employment: the IMF notes that sustainable job creation relies on a more dynamic private sector and better alignment between skills and market needs.

Continued Public Finance Reform

The new government will also need to ensure the implementation of the Strategic Framework for Public Finance Management Reform 2026-2032. Adopted by the Ministry of Economy and Finance, this framework focuses on five pillars: performance, sustainability, transparency, inclusivity, and reform coordination.

It aims to improve results-based budgeting, enhance budget risk management, modernize financial information systems, and ensure the interoperability of digital frameworks.

Thus, the reform is part of an ongoing process that must continue under the new administration.

Pension and Social Protection Reform

Pension reform also represents a structural challenge that must be addressed alongside strengthening the social state and advancing social protection reform.

The focus here will be on maintaining a balance among expanding social coverage, ensuring the financial sustainability of pension schemes, and meeting the social needs of households.

Labor Code at the Heart of Social Dialogue

The modernization of the Labor Code has also been identified as a priority by the IMF. In its 2026 analysis, the institution notes that labor market reforms are necessary to improve functionality while highlighting that updating the Labor Code should coincide with measures to enhance working conditions and the adaptability of businesses.

Therefore, this matter must be situated within a dialogue among the government, employer organizations, and unions, addressing evolving employment forms and how labor law can adapt to economic transformations.

Water: An Economic and Territorial Challenge

Water management will remain strategic. Morocco needs to maintain investments aimed at mobilizing water resources, desalination, wastewater reuse, and improving irrigation efficiency.

The IMF underscores the importance of strengthening the agricultural sector’s resilience to drought and addressing constraints related to water scarcity.

Water management transcends just the agricultural sector, as it also encompasses urban supply, industry, and land planning.

Major Projects Leading up to 2030

Finally, the new team will need to monitor major infrastructure programs underway in anticipation of upcoming international deadlines, particularly the 2030 World Cup, which Morocco is set to co-host with Spain and Portugal.

Investments will focus on railways, roads, airports, sports facilities, tourism, and urban infrastructure. The successful execution of these projects will require substantial public and private resources and must align with territorial development and economic competitiveness goals.

For Fatima Ezzahra El Mansouri and her future government, the upcoming cycle will thus be marked by a coexistence of several ongoing projects and new directions to define. Employment, private investment, competitiveness, public finance management, water, and social protection are anticipated to remain at the heart of economic and social discussions in the coming months.