Improving public sector performance: World Bank approves $600 million loan for Morocco

Improving public sector performance: World Bank approves $600 million loan for Morocco
Improving public sector performance: World Bank approves $600 million loan for Morocco

The first program, which supports the implementation of the reform of public establishments and enterprises (EEP) worth $350 million, “aims to improve governance, restructuring, competitive neutrality and performance monitoring of EEPs», According to a press release from the World Bank, published this Monday June 24, 2024 in Washington.

The additional funding of $250 million for the Moroccan Public Sector Performance (ENNAJAA) program will continue to support the Moroccan government’s efforts to improve performance and transparency, focusing on the modernization of public administration, including through digitalization and reforms in public finance management, added the same source.

«The priority objective of these two projects is to improve the performance of the public sector and the quality of public services provided to Moroccan citizens, in accordance with Morocco’s new development model.“, declared Jesko Hentschel, Country Director for the Maghreb and Malta at the World Bank, quoted in the press release.

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The World Bank will thus support the Moroccan government from the initial phases of the EEP reform, with an emphasis on results, by strengthening the technical and implementation capacity of the two executing agencies, namely the Ministry of Economy and Finance, in particular its Directorate of Public Enterprises and Privatization (DEPP) and the newly created National Agency for the Strategic Management of State Participations and Monitoring the Performance of Public Establishments and Enterprises (ANGSPE), all by encouraging coordination.

Improving the efficiency of public spending and revenue management

«The reform of the EEP is a priority for Morocco, as highlighted during the last council of ministers chaired by His Majesty King Mohammed VI on June 1. From a perspective of national prosperity, the objective is to restructure the public portfolio, improve its performance and carry out reforms to offer the population accessible and high-quality services.», added Jesko Hentschel.

In terms of public sector performance, the initial ENNAJAA program is already recording results “significant» after almost two years of implementation, with a notable increase of almost 7% in additional tax revenues thanks to better compliance at the national level, as well as a 22% increase in revenues collected by the ten largest municipalities in the subnational level.

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According to the World Bank, this additional financing for the ENNAJAA program will prioritize improving the efficiency of public spending and revenue management, including greater budget transparency for citizens on public spending. It will also facilitate the adoption of climate-sensitive budgeting, a first in Morocco, and gender-sensitive budgeting for eight ministerial departments by the end of the project, scheduled for 2028.

Par Le360 (with MAP)

06/24/2024 at 4:56 p.m.

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