With a diversified economy and exemplary stability in North Africa, Morocco has become a model of development and openness, massively attracting foreign investments. In a publication by the Policy Center for the New South, it is underlined that this dynamism, although encouraging, imposes significant challenges on the Kingdom, namely transforming this growth into a source of employment for its youth and an opportunity for inclusion for women.
Over the years, Morocco has established itself as a model of economic stability and regional dynamism. In just a few decades, the country has been able to diversify its economy and attract significant foreign investment, becoming a preferred destination in cutting-edge sectors such as automobiles, aeronautics and renewable energies.
According to a publication by the Policy Center for the New South, produced by Tayeb Ghazi and entitled “How African youth can change their destiny – The case of Morocco”, the Kingdom today finds itself facing a major challenge: transforming its growth as a real engine of employment for its youth and its growing active population. This development reflects a strong ambition: that of transforming Morocco into an economic hub for Africa and consolidating its role as a gateway to Europe and the Arab world.
A booming economy and significant progress
Morocco has taken ambitious steps to integrate into global markets and attract foreign capital. According to the United Nations Conference on Trade and Development (UNCTAD), the Kingdom is among the three most attractive African destinations for foreign investment, with a flow of $72 billion in strategic sectors. These investments do not only concern large industries, they also affect agriculture, tourism, offshoring, and other growth sectors which contribute to the resilience and diversity of the Moroccan economy.
At the same time, Morocco has strengthened its business environment through structural reforms. Since 2010, the National Committee for the Business Environment has strived to simplify procedures for investors, reducing deadlines for business creation, modernizing tax procedures, and encouraging the digitalization of services.
These efforts have allowed Morocco to climb 75 places in the World Bank’s Doing Business ranking, where it is now among the most business-friendly economies in Africa.
Human and natural resources as drivers of development
According to data from the document, Morocco has valuable natural resources, particularly phosphates, representing 70% of the world’s proven reserves.
However, the government is also banking on its human resources, by developing initiatives to prepare Moroccan youth for the challenges of tomorrow. The country has invested heavily in education and training, with programs to improve literacy and expand access to education. School enrollment rates have increased significantly, and progress in terms of vocational training continues to meet the growing needs of the labor market.
Thanks to these efforts, Morocco is approaching its sustainable development objectives, particularly in renewable energies, with emblematic projects like Noor, one of the largest solar power plants in the world. These initiatives not only diversify the economy but also position the country as a key player in the ecological transition in Africa.
Persistent challenges in the labor market and social inclusion
Despite these successes, Morocco still faces several structural challenges. The unemployment rate remains high, particularly among young people and women, a situation which reflects the mismatch between the job offer and the skills available. Between 2000 and 2021, even though the country created two million jobs, the working-age population increased by seven million, leaving a large segment of youth without job prospects.
This “jobless growth” highlights the need to strengthen labor-intensive sectors and accelerate the transformation of the economy to better meet the needs of Moroccans. The low participation rate of women is also worrying. With only 20% of women active in the labor market, Morocco, according to the document, must intensify its efforts to promote gender equality in access to employment.
The promotion of female entrepreneurship, particularly through cooperatives in rural areas, is a promising avenue. However, these cooperatives face difficulties in accessing information and financing, limiting their growth potential.
Towards economic diversification and a competitive business environment
In addition, according to the author, for Morocco to meet the expectations of its growing active population, economic diversification is essential. This involves strengthening sectors that create quality jobs and promoting a business climate conducive to innovation and entrepreneurship. Access to financing is another crucial point: although the reforms have facilitated certain procedures for businesses, SMEs continue to encounter difficulties in accessing capital. Encouraging alternative financing methods, such as crowdfunding, could offer solutions to Moroccan entrepreneurs while stimulating innovation. The progress made over the last decades shows the country’s desire to modernize and assert itself as a key player in Africa.
However, for this growth to be truly inclusive and sustainable, Morocco must continue its economic transformation by placing emphasis on the creation of quality jobs, the integration of women and young people into the labor market, and the adaptation of the education system to the realities of the modern economy.
By investing in its human capital and promoting innovation, the Kingdom can not only meet the aspirations of its youth but also meet the challenges of an increasingly competitive global market. By pursuing an inclusive and balanced approach, Morocco is paving the way towards sustainable growth which will benefit its entire population and consolidate its position as an economic leader in Africa.
Education for development and innovation
The document recalls that Morocco is aware that the success of its economic transformation relies on a qualified and well-trained workforce. Although notable progress has been made in literacy and schooling, the education system must continue to evolve to prepare young people for the challenges of a rapidly changing job market. It is thus noted that the rate of “learning poverty” remains high: around 70% of ten-year-old children struggle to understand a written text.
To make up for this gap, the government has launched reforms aimed at strengthening digital and environmental skills in school curricula, in addition to improving continuing training for teachers and investing in more adapted teaching methods.
Sanae Raqui / ECO Inspirations
