(Ecofin Agency) – Faced with the lack of rain, Morocco is getting ready to execute an emergency plan of around 10 billion dirhams and announces the main lines of the project for the new charter of the investment to instill a new economic dynamic. Review of details.
In Morocco, the impact of the lack of rainfall is felt, particularly on agriculture, a key sector of the Moroccan economy. The country has a deficit of 64% compared to a normal season, with a national average currently at 75 mm. These challenges are taken in hand at the highest level of the State. Faced with this climatic and water situation, which has a negative impact on the progress of the agricultural campaign, the Cherifian Kingdom is mobilizing to mitigate the effects of the delay in rainfall.
Nearly one billion euros to support the agricultural sector
An exceptional program was drawn up by the government and launched by King Mohammed VI, on Wednesday February 16, in Bouznika, during an audience granted to the Head of Government, Aziz Akhannouch and the Minister of Agriculture, Maritime Fisheries , Rural Development and Water and Forests, Mohamed Sadiki.
In detail, this initiative will require an overall financial envelope estimated at 10 billion dirhams, or 940 million euros, to which the Hassan II Fund for economic and social development will contribute an amount of 3 billion dirhams.
Three axes have been identified for the deployment of this program: the protection of animal and plant capital and the management of water scarcity, in addition to agricultural insurance, as well as the alleviation of the financial burdens of farmers and professionals, the financing of operations to supply the national wheat and fodder market, in addition to the financing of innovative investments in the field of irrigation.
These measures are now more than necessary to support the agricultural added value, especially since this sector alone represents 18% of GDP and remains the second provider of jobs in Morocco.
A new investment charter for a new economic dynamic
Another strategic priority for Mohammed VI: job creation, the promotion of equitable territorial development and the prioritization of promising sectors for the national economy. To achieve this, Mohcine Jazouli, Minister Delegate to the Head of Government in charge of investment, presented the main lines of the new investment charter to the King of Morocco. The objective: to establish the Cherifian kingdom as a privileged land for investment on a regional and international scale.
This new charter is supposed to bring the share of private investment to two-thirds of total investment by 2035, in accordance with the spirit and ambition of the New Development Model.
A main support system is provided by the project leaders. This mechanism is made up of common bonuses, in support of investments in line with the objectives of the New Development Model and the priorities set by the government; an additional territorial bonus, aimed at encouraging investment in the less favored provinces; as well as an additional sectoral bonus, granting incentives with a view to revitalizing promising sectors.
For projects of a strategic nature, such as the defense industries or the pharmaceutical industry, exclusive support measures are also planned, as well as a specific support mechanism intended for VSEs, SMEs, in addition to a for the development of Moroccan investments abroad.
As for the implementation of this new charter and its deployment, the details will be prepared by the government. Private operators, including the General Confederation of Moroccan Enterprises (CGEM) and the Professional Association of Moroccan Banks (GPBM), are also called upon to join this process.