A more balanced monarchy
As a constitutional monarchy, Morocco is governed by the three powers in place, the executive, the legislature and the judiciary, which are balanced and enjoy complete independence. In practice, however, the King has almost absolute power, being at the same time the religious leader, the supreme head of the armies and the President of the Council of Ministers. Following the February 20 Movement protests in 2011, King Mohammed VI called for a constitutional referendum, with the yes vote winning almost unanimously. The new constitution works towards a better separation of powers, an increase in the powers of the government and the prime minister, and the creation of a constitutional court. It affirms the principle of non-discrimination on grounds of race, sex or religion and introduces a gender perspective. However, the king still retains a predominant place and the fundamental freedoms claimed (of expression, of the press, among others) are still not guaranteed. On the administrative side, since 2015, the kingdom has established a new, more practical and logical division of the regions, while decentralizing power for greater regional autonomy. This new organisation now makes it possible to speed up reforms. Since the legislative elections of 2016, a two-party system has taken hold in Moroccan politics, shared between the Islamist party, the Justice and Development Party, and the Authenticity and Modernity Party, from the centre left. A positive balance that should make it possible to stop the rise of radical Islam.
Industry, a sector that provides jobs
Since the Second World War, industry has grown considerably in Morocco, accounting for over 30% of GDP and more than 20% of employment. Although the country remains extremely dependent on the outside world, numerous efforts are being made to diversify Moroccan industry and make the various sectors more efficient. Today, production is focused on phosphate, textiles, electromechanics, metallurgy and agrifoods, the latter accounting for over a quarter of total output. With 85% of the world's phosphate reserves, Morocco is the world's leading exporter. Although this trade contributes to the country's healthy rail traffic, world prices are collapsing and, contrary to expectations, exports are not providing the country's coffers with foreign currency. Morocco is also known as the world's leading hashish exporter, exporting 100,000 tonnes a year. Although prohibited, kif cultivation is the country's second most important resource, with most of the production taking place in the mountainous Rif region. Trafficking involves Europe for around 30% of consumption, and the United States for up to $2 billion. The presence of drugs in Morocco poses certain problems for the West, since if the country wishes to establish itself economically, it will have to give up this illegal trade. On the automotive side, the sector has emerged in recent years thanks to a government action plan that has seen the installation of several investors, such as PSA, which inaugurated its new plant near Kénitra in June 2019. Since 2014, the automotive industry has been growing by almost 14% a year, and has since generated nearly 120,000 jobs. Although Moroccan workers are considered the best in the Maghreb, efforts still need to be made on the lack of qualification, precision and punctuality of the workforce, real handicaps to the country's industrial development.
Tourism, an engine of economic growth
With a record 13 million visitors in 2019, the tourism sector was doing rather well before the Covid-19 crisis. For two years, it was severely affected between imposed travel restrictions and sudden border closures. By 2022, however, recovery was well underway, with over 4 million arrivals in the country between May and July 2022. Tourism is one of the driving forces behind the country's economic, social and cultural development, and a major revenue generator, accounting for 11% of its GDP. Nearly 550,000 direct jobs were generated in this field in 2018, corresponding to almost 5% of employment in the Moroccan economy. Although the government has invested many millions in promoting tourism in the country and supporting the sector, it must scale back its ambitions, rebuild the country after the terrible earthquake of September 2023 and plan a new action plan. Nevertheless, Morocco remains one of the top three destinations on the African continent, attracting the vast majority of French tourists (over 60%). But the government would like to focus its efforts on the Chinese outbound market, which is growing by leaps and bounds. Whereas in 2015 there were just 10,000 Chinese tourists, there are now more than 130,000 visiting the kingdom, who have been able to travel visa-free throughout the country since 2016. An agreement has even been signed with China's largest online travel agency, Ctrip, to raise the country's profile, with the aim of reaching 500,000 Chinese tourists a year.
Morocco, leading the way in renewable energy
Aware of its energy dependence (20% of Morocco's electricity is supplied by Spain) and the weakness of its oil resources, the kingdom has decided to adopt an ambitious strategy to reach the target of 52% renewable energy production by 2030. Since 2009, several programs and action plans have been put in place, including the opening in 2014 of a gigantic wind farm, 20 km from Tarfaya, with an annual capacity of 301 MW. Four years later, another major project is being developed in Tangiers, the Khalladi wind farm, which can supply up to 400,000 inhabitants year-round! As for solar energy, the government has not skimped on the means either. With the construction of the largest thermodynamic solar complex near Ouarzazate, Morocco is positioning itself as the leader in renewable energy in Africa. With a capacity of 580 MW today, the solar complex, when it is completed in 2050, should provide more than double this power, which will represent 11% of the world's electricity production! While Morocco currently imports 93% of its energy, this trend is expected to continue downward until the situation is reversed.
Agriculture, a sector in good shape
Agriculture is the mainstay of the Moroccan economy, providing a livelihood for almost 40% of the working population. Cereals, such as corn and barley, occupy 80% of cultivated land, while pulses, such as beans and lentils, cover barely 5%. Fruits (oranges, clementines, grapes) and vegetables ripen very quickly in Morocco, particularly on the coast where the water and climate allow this type of crop. It is estimated that nearly 3 million tonnes of fruit and 6 million tonnes of vegetables are produced each year in Morocco, which is one of the biggest Mediterranean producers of citrus fruit. Overall production currently accounts for 30% of international trade, with the European Union the main customer. Several free-trade agreements have been signed with certain countries, including Tunisia (1999), Egypt (1999) and the United States (2006), reducing customs duties on low-cost Moroccan products. In 2008, the government launched the Plan Vert Maroc (Green Plan Morocco), designed to make agriculture the primary lever for development, by increasing investment in the sector by 10 billion DH per year, creating jobs, making the sector more competitive through exports, and developing rural areas. Since the implementation of this strategy, more than 340,000 jobs have been created. Another major objective for the kingdom in the coming years is to boost organic farming, notably with the recent creation of a certification logo. Although the government had planned to reach 40,000 hectares under cultivation by 2020, there is still a long way to go, as only around 18,000 hectares are currently dedicated to organic farming.
Current issues
Morocco's main challenge is to reduce its deficit: its overall public debt stands at 951.8 billion DH, or around 71% of GDP by 2022, compared with 82% in 2017. The country must also fight unemployment, which mainly affects young people, whose rate is close to 23% according to the High Commissioner for Planning. More than 770,000 young people aged 15 to 29 are out of work, as the market is unable to absorb the tens of thousands of graduates every year. Aware of the low wages in the public and private sectors, the government has signed an agreement with the main trade unions to increase them by 5% in September 2022 and 2023. As a result, employees will gradually see their standard of living rise. But, although the rate of Moroccans living below the poverty line has fallen, according to World Bank criteria, the opposition points out that the gap between rich and poor continues to widen. However, the National Initiative for Human Development (INDH), led by the King himself, is showing positive results in rural areas and disadvantaged neighborhoods, ranking Morocco3rd among the best social programs. On the geopolitical front, the kingdom will have to find common ground with the Polisario Front on the status of Western Sahara. Although the mandate of the United Nations Mission in Laâyoune, a group of UN civilian, military and police personnel, is still in place, the organization of a referendum on the self-determination of the Saharawi people has been under discussion since 1991, and the Security Council renews its mission every year, in the hope that this conflict can be resolved without arms.
