Moroccan Economy

Can Investment in Renewable Energy and Privatization Save Moroccan Economy



The threats posed by the detrimental effects of global warming and the degradation of the ecological environment due to the intensive industrialization has increased the amount of greenhouse gases in the atmosphere, thus,  prompting decision-makers to adopt groundbreaking measures  towards a cleaner industry.

For Morocco, a country that has been facing waves of political and economic unrest during the last decade, a transition towards energy efficiency at this particular moment might not lead to the creation of labor intensive structures in the very short term. Yet, investing, in such a promising and growing sector may offer a glimpse of hope for the industrial sectors, as well as the labor market in the forthcoming years.  Indeed, the implementation of a renewable energy strategy is liable to reduce dependency on imported energy.

The European Bank for Reconstruction and Development considers that the transition towards energy efficiency in Morocco cannot be achieved without supporting the domestic production  of renewable energy, in addition to a substantial reform in the electricity sector, including the reorganization of the state owned ONE ( Office National d’ Electricité). The EBRD report recommends the implementation of energy sufficiency throughout municipal and public services in private and public buildings and across numerous industries through a transition towards privatization.

During the EBRD annual meeting held in London on the 18 and 19 May, Mr.  Fathallah Sijilmasi Secretary General of the Union for the Mediterranean outlined a four-step plan to lay robust foundations for renewable energy production in the Maghreb, including Morocco. He stressed that the primary focus in the North African region is to put forward regional projects to find a remedy to the low level of regional integration among North African countries. He added that Morocco is negotiating with the EBRD a master plan about solar energy with the goal of producing 20 Giga Watt by 2020.

The master plan comprehends a number of key stages. The first step aims at formulating a legal framework for energy exports to Europe before setting the financial mechanism for buying and selling subsidies. The third step would be the implementation of adequate infrastructure in local as well as international markets. According to Mr. Sijilmasi, the overture to international markets in the Mediterranean Union will operate at three main corridors, namely Morocco and Spain, Tunisia and Italy, as well as Turkey and  Greece. He went on to say that the industrial component remains pivotal in job creation.

As a matter of fact, the concept of energy efficiency still does not strike a chord with many industrialists in Morocco. Hence, the necessity to sensitize the public opinion over this news trend in energy management.

The EBRD financing for renewable energy has grown dramatically in recent years with a number of groundbreaking projects mainly in the exploitation of wind and hydropower. Now that the ERBD has inaugurated a new region of operation in many ways, it is faced with a new context full of new business prospects but also characterized by different legal tradition and cultures. The novelty of this business environment calls for a thorough examination of the main challenges facing the private sector in this region.

Nevertheless, the financing of the private sector by European financial institutions may lead to a massive privatization that would open the way to corruption and the resurgence of  the same unhealthy environment- that stirred the uprising a year ago in Egypt and Tunisia- marked by  corruption and inequality in wealth distribution.

Many economists remain skeptical about the new interest that European financial institutions are showing to the North African region. The same institutions were zealous to invest in the private sector in Eastern European countries in 1990s. The liberalization of public institutions in Eastern Europe had the reverse effect sought at the onset of this operation. Many workers lost their jobs as public institutions were privatized, not to mention the shrunk in public budget since the public revenues were severely reduced as the privatization extended to more public institutions.

Between what the EBRD advocates, namely the promotion of democracy and free market economy  , the critical situation of Arab governments in the North African region and the   threats than an uncontrolled privatization  may present,  many politicians in countries like Morocco  and  Tunisia  seem to be  more concerned about their immediate survival  rather than about the far-reaching consequences of  this  European appetite  in an unstable region.

Morocco nedws, news about Morocco, Moroccan economy, renewable energy in Morocco, privatization in Morocco,


morocco culture,moroccan food,morocco food,moroccan cuisine,morocco beaches,moroccan meal,beaches in morocco,moroccan culture,hercules cave,hercules cave morocco

Morocco's economy

Morocco's economy is considered a relatively liberal economy governed by the law of supply and demand. Since 1993, the country has followed a policy of privatization of certain economic sectors which used to be in the hands of the government.[5] Morocco has become a major player in the African economic affairs,[6] and is the 5th African economy by GDP (PPP). The World Economic Forum placed Morocco as the 2nd most competitive economy in North Africa behind Tunisia, in its African Competitiveness Report 2009.[7] Additionally, Morocco was ranked the 1st African country by the Economist Intelligence Unit' quality-of-life index, ahead of South Africa.
Tough government reforms and steady yearly growth in the region of 4–5% from 2000 to 2007, including 4.9% year-on-year growth in 2003–2007 the Moroccan economy is much more robust than just a few years ago. Economic growth is far more diversified, with new service and industrial poles, like Casablanca and Tangier, developing. The agriculture sector is being rehabilitated, which in combination with good rainfalls led to a growth of over 20% in 2009.
The services sector accounts for just over half of GDP and industry, made up of mining, construction and manufacturing, is an additional quarter. The sectors who recorded the highest growth are the tourism, telecoms and textile sectors. Morocco, however, still depends to an inordinate degree on agriculture. The sector accounts for only around 14% of GDP but employs 40–45% of the Moroccan population. With a semi-arid climate, it is difficult to assure good rainfall and Morocco's GDP varies depending on the weather. Fiscal prudence has allowed for consolidation, with both the budget deficit and debt falling as a percentage of GDP.
In 2009 Morocco was ranked among the top thirty countries[8][9][10][11] in the offshoring sector. Morocco opened its doors to offshoring in July 2006, as one component of the development initiative Plan Emergence, and has so far attracted roughly half of the French-speaking call centres that have gone offshore so far and a number of the Spanish ones.[12][13][14] According to experts, multinational companies are attracted by Morocco's geographical and cultural proximity to Europe,[8][13] in addition to its time zone. In 2007 the country had about 200 call centres, including 30 of significant size, that employ a total of over 18,000 people.[13]
The economic system of the country presents several facets. It is characterized by a large opening towards the outside world. France remains the primary trade partner (supplier and customer) of Morocco. France is also the primary creditor and foreign investor in Morocco. In the Arab world, Morocco has the second-largest non-oil GDP, behind Egypt, as of 2005.
Since the early 1980s, the Moroccan government has pursued an economic program toward accelerating real economy growth with the support of the International Monetary Fund, the World Bank, and the Paris Club of creditors. The country's currency, the dirham, is now fully convertible for current account transactions; reforms of the financial sector have been implemented; and state enterprises are being privatized.
The major resources of the Moroccan economy are agriculture, phosphates, and tourism. Sales of fish and seafood are important as well. Industry and mining contribute about one-third of the annual GDP. Morocco is the world's third-largest producer of phosphates (after the United States and China), and the price fluctuations of phosphates on the international market greatly influence Morocco's economy. Tourism and workers' remittances have played a critical role since independence. The production of textiles and clothing is part of a growing manufacturing sector that accounted for approximately 34% of total exports in 2002, employing 40% of the industrial workforce. The government wishes to increase textile and clothing exports from $1.27 billion in 2001 to $3.29 billion in 2010.
The high cost of imports, especially of petroleum imports, is a major problem. Another chronic problem is unreliable rainfall, which produces drought or sudden floods; in 1995, the country's worst drought in 30 years forced Morocco to import grain and adversely affected the economy. Another drought occurred in 1997, and one in 1999–2000. Reduced incomes due to drought caused GDP to fall by 7.6% in 1995, by 2.3% in 1997, and by 1.5% in 1999. During the years between drought, good rains brought bumper crops to market. Good rainfall in 2001 led to a 5% GDP growth rate. Morocco suffers both from unemployment (9.6% in 2008), and a large external debt estimated at around $20 billion, or half of GDP in 2002.[15]
A reliable European ally in fighting terrorism, drug trafficking and illegal immigration, Morocco was granted an "advanced status" from the EU in 2008,[16] shoring up bilateral trade relations with Europe. Among the various free trade agreements that Morocco has ratified with its principal economic partners, are The Euro-Mediterranean free trade area agreement with the European Union with the objective of integrating the European Free Trade Association at the horizons of 2012; the Agadir Agreement, signed with Egypt, Jordan, and Tunisia, within the framework of the installation of the Greater Arab Free Trade Area; the US-Morocco Free Trade Agreement with United States which came into force on 1 January 2006, and lately the agreement of free exchange with Turkey.


morocco culture,moroccan food,morocco food,moroccan cuisine,morocco beaches,moroccan meal,beaches in morocco,moroccan culture,hercules cave,hercules cave morocco

Energy in Morocco

Energy in Morocco

“The creation of the Renewable Energies Development Center (CDER) in 1982 is clear evidence of the government’s determination to promote renewable energy sources.”

                                         
 SECTOR DESCRIPTION
Morocco, with its growing economy, is the largest energy importer in North Africa, highly dependent on imports of fossil fuels to satisfy its energy needs. 
Development of renewable energies is crucial to Morocco’s energy policy for a rapidly growing population. To meet the energy needs of residential, industrial and rural areas, Morocco must graduate to more efficient systems with lower consumption and higher returns in the years to come.  In this context, exploiting new energy technologies becomes essential.  Morocco’s wind and solar potential are among the highest in the world, making it an ideal market for investments in environmentally sound energy sources.
Since 1996, the Government has made significant gains in improving the private sector’s role in the electric power sector.  Through the concessions for thermal power plants, wind farm power plants and power distribution, the private sector now owns and operates 40% of the total installed power generating capacity and 60-70% of the distribution market.  The Government’s policy is to create a competitive environment to increase efficiency and reduce costs to consumers through increased private sector participation. 
 Structure of the market
 
Hydroelectricity
Morocco has more than 30 years experience in water resources mobilization policy for both agricultural and energy production purposes.  Currently, 25% of electricity is of hydro origin. 
Installed power: 1175 Mega-Watt (MW), with another 550 MW under construction.



Photovoltaic Solar Energy
As of March 2005, a capacity of more than 6 MW is currently installed, providing rural electricity for 14 villages.  Photovoltaic energy is also used for water pumping and in the commercial sector.
Commercial uses: telecommunications, TV relays, radio, schools in rural areas.

Solar Thermal Energy
This is an evolving market.  Morocco has gone from a production rate of 52,812 sq. feet/annum in 1999 to 211,250 sq. ft./annum today.  The domestic market exceeded 422,500 sq. ft./annum in 2006, with a global turnover of USD 4.5 million for the sector accompanying a considerable decrease in greenhouse gases.
Major potential users: schools, homes and health facilities

Wind Power
30 sites have been identified, all of which have considerable development potential.  Numerous private foreign operators are developing projects to produce green electricity, and a Wind Atlas is available for consultation. 
Capacity: 450 MW at present, 350 MW additional capacity underway. 
 

The Opportunities
 SOLAR POTENTIAL
A study financed by the European Commission considered the transferability of the solar thermal parabolic trough technology to Mediterranean countries.  Partially based on experience in California, the study prompted the World Bank/Global Environment Facility (GEF) to approve in June 2005 a project to support the implementation of a solar based power scheme in northern Morocco. 
The project will be implemented in two phases:

• Engagement of specialized consultants to prepare a feasibility study, bidding documents and draft contracts for power purchasing, fuel supply, and engineering/procurement/construction – EPC; Operation and Maintenance (O&M) agreements; and to advise the national power utility (ONE) during the evaluation of proposals and negotiations to the contract.
• Construction and operation of the plant.

Furthermore, the Government’s rural electrification program (PERG), launched in 1996, aspires to electrify more than 35,000 villages, giving power access to 12 million rural citizens, via photovoltaic kits.  At the end of July 2007, 30,255 villages had been electrified, touching 1,709,654 homes, or about 11,112,456 inhabitants.    

Between 1991 and 1994, CDER conducted measurements to determine the wind potential along the Atlantic coast and in the north-east of the country.  In a second phase, from 1997 – 2000, selected sites were investigated.  Now the final phase, 2001 – 2010, is geared to the evaluation of potential in the mountainous Atlas and Rif regions. 
Wind farm projects have recently been completed in Tangier and Essaouira.  The Tangier farm comprises two sites: Sendouck, 65 MW and Dhar Saadane, 75 MW.  The latter project, worth over USD 80 million, is expected to produce 210 Giga-watt-hours (GWh). Both were completed in 2006.

   

WIND POTENTIAL
Morocco has good very good wind conditions, with mean wind speeds exceeding 24 mph in some places, so the country’s exploitable wind potential is substantial.  CDER estimates Morocco’s total wind power potential at 6,000 MW.  The Government increased the share of electricity generated with wind power to 4% in 2004. 

• Hassan II Subsidy: Projects dealing with the environment are eligible for a subsidy consisting of 50% of the cost of land, calculated on a maximum price of USD 2.58/sq. foot; 30% of the cost of construction, calculated on a maximum cost of USD 15.78/sq. foot.
• Exemption from commercial license tax for all commercial or industrial activities during the first five years of activity; and on land, new construction, continuing construction, and equipment acquired during the operation.
• Exemption from urban tax for new construction, continuing construction, and equipment related to the operation for the first five years. 

Strategic Plan
The creation of the Renewable Energies Development Center (CDER) in 1982 is clear evidence of the government’s determination to promote renewable energy sources.  Current policy aims to develop renewable energies in ways that complement other energy forms, to develop local skills, and to implement a strategy of partnership with the private sector.
The goal of the Moroccan government is to raise the renewable energies share of national electricity production to 20% by 2012.
The renewable energy policy is currently in its general implementation phase, supported by the CDER and the Electricity Department (ONE), focusing on economic issues and sustainable development.

• Mid-term goal: ensure that renewable energies represent from 6% to 10% of Morocco’s domestic energy consumption
• Promote the use of renewable energies
• Economic and social objectives: secure renewable supplies, expand rural access to electricity, optimize costs while alleviating negative environmental impacts
• Main activities include: increased exploitation of hydroelectric resources, the production of wind and solar energy, the promotion of modern rural energy services (decentralized electrification of 10,000 villages), the production of hot water using solar panels
• Expected impacts include: a potential savings of 1.5 million tons of oil equivalent (TOE), a reduction of carbon dioxide emissions, a limitation of deforestation, job creation, energy export promotion (green electricity, equipment, technical expertise)
• Increased foreign investment and partnerships in these energy related fields

morocco culture,moroccan food,morocco food,moroccan cuisine,morocco beaches,moroccan meal,beaches in morocco,moroccan culture,hercules cave,hercules cave morocco

Energy policy of Morocco

Prime Energy Cleantech News: Germany made the financing of the first large Moroccan solar power station.


Prime Energy Cleantech: Officials hope to generate 38 percent of Morocco's power through solar power plants by 2020.
Last week the KfW Entwicklungsbank and the Moroccan Agency for Solar Energy signed the mutual agreement: the German Federal Environment Ministry will provide a grant of 15 million euros from the International Climate Initiative ICI for the installation of the country’s first large-scale solar power plant.

The plant, which will be situated near the city of Quarzazate in southern Morocco, will have a capacity of 160 MW and will generate solar energy availability three hours into the early evening. Construction is willing to begin in 2012 and is expected to continue for the period of one year.

In fact, the construction of this solar thermal power plant is the first step to realize the ambitious solar power plan which comprises building up power plant capacity to 2000 MW by 2020. By expanding the use of wind energy, Morocco plans to cover around 28 percent of its electricity supply with renewable energies by 2020.

Morocco is considered to be the only North African country with no oil production, in fact has made the development of renewable energy sources there all the more necessary.

Actually, this is quite the realistic project. The Energy Minister Amina Benkhadra guaranteed that all the technical and financial resources to make it succeed.

Germany has closely coordinated its financing support of the Moroccan project with other donors, including the World Bank, the African Development Bank, the European Investment Bank, the French Development Bank, and the European Commission. Germany’s contribution to the project will make it one of Morocco’s most important partner’s in establishing the Quarzazate power plant.


morocco culture,moroccan food,morocco food,moroccan cuisine,morocco beaches,moroccan meal,beaches in morocco,moroccan culture,hercules cave,hercules cave morocco

Morocco presents to Madrid the opportunities it offers in Offshoring

Morocco presents to Madrid the opportunities it offers in Offshoring


Morocco presented on Thursday in Madrid, what it offers in investment opportunities in the offshoring sector, and to Spanish investors at the 12th Annual Conference "IT Sourcing".


The Director of the Moroccan Agency for Investment Development (AMDI) in Spain,  Aziz El Atiaoui,  was keen to enumerate the opportunities offered by the offshoring sector to Spanish investors and the growth of knowledge this field in the Kingdom. He said the industry had created some 52,000 jobs and generated over 300 call centres in 2011.
  
It was also an opportunity for the manager to present AMDI  to Spanish operators offering the new area Tetouanshore which opened this year, as well as the potential of the Kingdom in this area, including geographical proximity and its skilled labour, stressed MAP.
  
In addition, El Atiaoui noted that Morocco has put in place a platform for 10 years and  become the world leader in offshoring services ITO (Information Technology Outsourcing) and process outsourcing transverse and vertical (BPO) , recalling in this regard that the Kingdom had been named "best offshoring destination for the year 2012" by the European Association of offshoring (EOA) and "best destination for France and Spain" in 2011 by the research firm Gartner. Distinctions that came as a reward for the tremendous progress that the Kingdom has made in the field of offshoring and making Morocco one of the most promising countries for this activity, as evidenced by the presence in the country of several  international companies world with extensive experience in the field.
 
It should  also be noted, that the attraction of Kingdom’s offshoring is based on the combination of eight features, including geographical and cultural proximity compared to Europe, competitive labour costs an increasing number of qualified human resources, major telecommunications and electricity infrastructure, the political and economic stability, continuous improvement of the system of personal data and access to local and regional markets experiencing rapid growth.



morocco culture,moroccan food,morocco food,moroccan cuisine,morocco beaches,moroccan meal,beaches in morocco,moroccan culture,hercules cave,hercules cave morocco

The Moroccan Agency for Investment Development

The Moroccan Agency for Investment Development (MIDA) and business intelligence firm Oxford Business Group (OBG) renewed their partnership for the preparation of the 9th edition of the macroeconomic "The Report: Morocco 2013".

More Sharing ServicesPartager Share on facebook Share on twitter Share on facebook_like

"Morocco, 1st offshore destination Francophone Africa and is in the top 30 most popular destinations," Ahmed Fassi Fihri. (Photo: lesoir-echos.com)
This report offers investors a complete analysis, sector by sector, the latest developments in the business climate in Morocco, a statement of OBG arrived Tuesday at the MAP, noting that both parties will work closely together to provide an analysis depth of the economic environment in Morocco.

Among the main topics to be discussed in "The Report: Morocco 2013" include in particular the growth of the business sector offshoring and aeronautics, renewable energies, the dynamics of the education sector private higher mining and rural development.

The statement further notes that Morocco is committed to a policy aimed at improving the investment climate and modernizing the legislative, regulatory and institutional frameworks that regulate economic activity in the country.

In a statement quoted by the press release, the director of OBG Morocco, Miranda Stobbs, noted that "in light of Morocco's efforts to diversify the sources of foreign investment and boost growth in non-traditional sectors, including the rural areas of South and East of the country, the publication of The Report: Morocco 2013 is very timely. "

Miranda Stobbs added that collaboration between OBG and AMDI "ensures robust analysis and supported by discussions with key decision makers and stakeholders."

For his part, the director of the investment AMDI Ahmed Fassi Fihri, said that "Morocco is the first offshore destination Francophone Africa and is in the top 30 most popular destinations for Offshore" indicating that this sector currently employs 46,000 people.

The business intelligence firm Oxford Busines Group covers Morocco and studied for nine years. Since 2003, OBG works with many partners including AMDI and publishes an annual study of the economic trends of Morocco.

morocco culture,moroccan food,morocco food,moroccan cuisine,morocco beaches,moroccan meal,beaches in morocco,moroccan culture,hercules cave,hercules cave morocco

Moroccan journalists will they balk after the "humiliation" of Morocco Mall?

Moroccan journalists will they balk after the "humiliation" of Morocco Mall?

Rabat. - According to the French website Rue89 which incorporates information from the Moroccan site Yabiladi the inauguration of the largest shopping center in Morocco, Morocco Mall in Casablanca has not rained for Moroccan journalists.
This inauguration, officiated by the singer and actress Jennifer Lopez, is made ​​only in the presence of foreign journalists. No Moroccan journalist was invited and those who showed up at the entrance were turned away.
These are the leaders of the group Aksal, the "leader of the Moroccan retail, luxury malls," directed by Salwa Akhannouch, the wife of Aziz Akhannouch, the Minister of Agriculture, who are behind this unusual proscription worthy of Ministry inside.
Why the ban while the Morocco Mall is located in Casablanca?, Wondered the repressed. Because in these times of Arab revolutions and economic crisis, Morocco Mall likely to be perceived by the Moroccan population, which reads the Moroccan press and not foreign, as a gratuitous provocation and moved.
It is true that today's Morocco, which requires hospitals and roads (but not TGV!) He actually need a hypermarket luxury, built by a foreign architect whose commercial space will be dedicated to 600 foreign brands ...
The Group will Aksal he reprisals from the Moroccan journalists? asks anxiously Rue89. But no. Salwa Akhannouch will turn the situation by inviting all expenses paid some tenors of the Moroccan press a so-called "study tour", as it organizes many in Morocco (and elsewhere) to forget this grave humiliation.


morocco culture,moroccan food,morocco food,moroccan cuisine,morocco beaches,moroccan meal,beaches in morocco,moroccan culture,hercules cave,hercules cave morocco