Finance News Weekly: The theme of the MEDays Forum this year, “Sovereignties and resilience: towards a new global balance”, is at the heart of the debates. When we talk about sovereignty, what exactly is it? Is it political, economic sovereignty or a more global notion?
Mohamed H’midouche : Sovereignty is a central subject today, particularly since the Covid-19 crisis. This pandemic has highlighted the difficulties of countries in the South in accessing vaccines and protecting their populations. The United Nations had put in place a mechanism to ensure equitable distribution of doses, but in reality, rich countries monopolized the stocks. Meanwhile, African countries were left behind. UN Secretary General António Guterres predicted a massacre in Africa, announcing millions of deaths due to lack of access to vaccines. Fortunately, the reality was different, but the crisis had a devastating impact on our economies: grounded planes, confinement, hotel and restaurant closures, and above all millions of people without a dream.naked. This experience was a real shock for our leaders. They understood that it was imperative to invest in our own security, whether food, health, energy or industrial. For example, the war in Ukraine has further heightened this awareness. We were heavily dependent on wheat imports from Ukraine and Russia.
When these flows stopped, it created an additional crisis. His Majesty King Mohammed VI has launched a clear call to strengthen our national sovereignty in all these strategic sectors. He insisted on the need to guarantee continuity in access to agricultural, health, industrial and energy products. This marks a break with the old model of globalization, where the countries of the South exported raw materials, such as coffee, cocoa or minerals, and the countries of the North carried out the transformation. Take cocoa: it is produced in Ivory Coast and Ghana, but processed by the Swiss, Belgians or French, not by the Ivorians themselves. Today, we have started an industrialization process to locally transform our resources. This generates jobs, creates wealth and significantly increases the added value of exports, whether oil, gas, cotton or rice. This awareness is growing across Africa, although not all countries are at the same level of mobilization. We need clear roadmaps, well-defined strategies, action plans and above all resources, human and financial. I remain optimistic. When a problem is identified, it is possible to implement solutions to remedy it.
FNH: In your opinion, what progress has been made by Morocco in this quest for sovereignty?
M. H. : Morocco is an excellent example of progress in sovereignty, thanks to the vision of His Majesty King Mohammed VI. The Moroccan economy has transformed over the past 25 years. Take the aviation industry, for example: a few decades ago, it didn’t exist. Today, we have Moroccan companies manufacturing airplane parts, with local engineers. I myself took the high-speed train (LGV) from Rabat to Tangier, and this journey only took 1 hour 20 minutes. This reduces travel times, improves competitiveness and attracts foreign investment. Additionally, we launched two major industrial ecosystems under royal leadership: automotive and aeronautics. Next to Mohammed V airport, companies locally manufacture aircraft components. These sectors, which are highly technological and capital intensive, create new ecosystems. This also shows that the business environment in Morocco is attractive. Initiatives like Casablanca Finance City (CFC) encourage companies to use Morocco as a base for their activities in Africa. The country also has a qualified workforce, recognized for its skills, with competitive salaries. However, I would like to emphasize that we must not rely on the low-wage policy. A strong economy requires better living conditions for workers. Take the example of Germany: Angela Merkel welcomed a million Syrian immigrants and offered them not only training, but also well-paid jobs, on the same conditions as the Germans. This created positive economic momentum as these workers consumed locally, purchased goods and stimulated growth.
FNH: Fintech is often seen as an important lever for strengthening economic sovereignty. Where does Morocco stand in this area?
M. H. : Fintech, which combines finance and technology, offers a major opportunity for populations excluded from the traditional banking system. In Africa, in rural areas where banks are absent, fintech provides access to financial services via digital platforms. However, it is necessary to qualify: in Morocco, the banking rate already exceeds 70%, thanks to initiatives such as those of Attijariwafa bank, which has developed a dense network of agencies, even in remote areas. This limits the immediate need for fintech solutions. But fintech can play a crucial role for other targets: young people, women and the informal sector. It simplifies access to services such as bill payment, money transfers, and international payments. Remittances from the African diaspora, for example, represent billions of dollars, and fintech can reduce the often exorbitant costs of these transactions. It’s also important not to forget Islamic finance, which is booming in regions like Southeast Asia, East Africa and the Middle East. Islamic finance via fintech represents an opportunity that Morocco could further explore.
FNH: Today, we are talking about the Zlecaf (the Continental Free Trade Area). With the monetary, regulatory and governance disparities that exist in African states, do you think that this regional continental market can really assert itself as a viable and sustainable trade platform?
M. H. : I am an eternal optimist. These problems are not insurmountable, as long as there is the will. Don’t they say that “to want is to be able”? When there is the commitment of everyone to work together to move forward on all levels, within the framework of south-south cooperation and regional economic integration, we can achieve a lot. Unfortunately, conflicts between neighbors still occur today. Which is a significant obstacle. According to official statistics, Africa’s share of world trade does not exceed 3% and intra-African trade does not exceed 16%. Compared to Europe 60% and Asia 70%. This means that we have a long way to go. How do you want to export from one country to another when the borders are closed? For example, borders like those between Benin and Niger or between Morocco and Algeria have been closed for years; the situation in the DRC with the M23, the lack of infrastructure, etc., all these challenges hinder fluid cooperation between States. Despite these obstacles, I am convinced that we can move forward thanks to strong political will. Western media, unfortunately, often project a negative image of Africa, emphasizing conflicts and problems. However, many African countries are examples of success. Therefore, we must show this other image of Africa with diverse potential, work to remove trade barriers, strengthen regional cooperation and attract more foreign direct investment. Africa is full of potential, but its development relies on its youth. It is crucial to offer them opportunities, so that they do not get lost in emigration projects in the deserts and in the seas at the risk of their lives. Africa will only develop with and by Africans.
FNH: At the end of COP29, only $300 billion was promised to countries in the South to deal with climate change. Should Africa, which is part of this bloc, continue to count on aid from Northern countries for its transition?
M. H. : First there is the “polluter pays” principle which is the concept used within the framework of the COP negotiations. Then, commitments of $100 billion per year that have only recently been met. When I see the figures coming from Baku, Africa asked for 1,000 billion. It only obtained a vague commitment for a much lower sum, announced at 300 billion dollars by 2035. In addition, no details were given on the distribution of these funds or on their implementation . Today, the debate is heated between the countries of the North which require the countries of the South not to use fossil fuels. But for countries like Nigeria or Algeria, where 95% of their exports come from oil, if they stop exporting, how will they develop? The whole problem is there. It is time for Africa to take charge of its destiny. And in response, two encouraging initiatives were taken this year. First, that of the creation of an association of African oil-producing countries, whose headquarters is in Nigeria. Second, the creation of the African Energy Bank, which will aim to pool the efforts of African countries in order to continue to support investments in the fossil energy sector. But they must be accompanied by adequate Africa-specific resources and solid governance. Africa has the means and talents necessary to develop. What we must do is leverage our youth, our resources and our intra-African cooperation to build a sustainable future.
