PFor the 2030 edition, SKG tried to quantify the budgetary envelope that the Kingdom will have to mobilize to meet its investments, integrating a certain number of hypotheses, in particular those relating to the modernization of construction standards, the effects of inflation and higher expectations in terms of budget following the edition of Qatar 2022. Taking into account the average cost of organizing a World Cup, and the asset manager’s forecasts, the latter could locate oneself between 15 and 20 billion dollars for the Morocco-Spain-Portugal trio.
Morocco’s share of this organizational budget should be around 5 to 6 billion dollars (or between 50 – 60 billion dirhams). “Our analyzes show that the budget balance could deteriorate slightly, but that financing should be done without pressure additional information on public finances. On the other hand, we should record a short-term widening of the current account deficit due to increased imports of finished and semi-finished products. This trend should be reversed in the medium to long term thanks in particular to the increase in tourism revenue,” explains the asset manager.
Financing the total organizational cost
For the Asset Manager, the total cost of constructing stadiums and training centers should be borne entirely by the State in its budget for 2024-2030: i.e. an envelope of 25 billion DH Financing of related projects infrastructure and the transport network should be supported by SEGMA through bank credits and/or recourse to the private debt market for an amount estimated at 17 billion DH. SKG also plans external concessional loans, and donations/aid from other countries could take place in order to finance the other costs inherent to the organization for some 10 billion DH.
In terms of macro impacts, the financing of the budget balance should be done without upward pressure on rates over the 2024-2030 horizon; the current account is expected to widen by 2030 in line with the increase in imports of finished and semi-finished products (around 25 billion DH, or 1.5% of GDP). For credits, the situation is profitable for the banking sector, through the financing of construction and infrastructure projects.
Stock market: the winning sectors
-SKG also looked at the impacts on the stock market, highlighting a few sectors that should benefit from this co-organization. “Regarding the Casablanca Stock Exchange, the results of the organization of the World Cup will be largely positive. The banking and construction sectors were expected to benefit greatly from the investment effort in infrastructure and hotel capacity,” says Ton. The construction sector would be driven for several months, even years, for large-scale projects (stadiums, infrastructure, roads, etc.), thus strengthening the utilization rate of operators. The installed capacities for the production of cement (22 MT compared to 14 MT of current consumption) and reinforcing steel would be sufficient in relation to demand.
The various projects should increase the order book of listed construction companies. The banking sector should benefit from the organization of this World Cup through the increase in the outstanding amount of bank financing dedicated to infrastructure projects (construction of hotels and other infrastructures); the good dynamics of other sectors (transport, tourism, etc.) should also benefit the banking sector and the increase in the use of banking services: foreign exchange transactions, withdrawals, electronic payments, etc. The organization of this World Cup should have a positive impact on the Moroccan tourism sector in the short and medium term thanks to a significant flow of tourists for the year in which the competition is organized and the years that follow, and an improvement in national hotel supply to achieve the objectives of the tourism sector in the medium and long term.
The telecoms sector should benefit from the organization of this World Cup through an increase in voice and data traffic, as well as an improvement in penetration rates at national level and investments in the extension and improvement of network infrastructures. of the country as well as the acceleration of the implementation of 5G. This “assessment” exercise of the impacts of the organization of the 2030 World Cup on the Moroccan economy will be enriched and updated as future figures and publications become available, concludes SKG.
A €650 million financing project from the ADB to prepare for the 2030 World Cup
The African Development Bank (AfDB) wants to support Morocco’s preparations for the 2030 World Cup, through financing of 650 million euros (M€), its president, Akinwumi Adesina, recently announced. “To support Morocco’s preparations for the 2030 World Cup, the ADB will soon submit, for approval, a financing project of 650 million euros for the development of railway and airport infrastructure, thus strengthening Morocco’s competitiveness in this area “, he said. Reaffirming the bank’s continued support for Morocco’s structural reforms, Adesina also recalled that the Kingdom is the Institution’s main partner, with an active portfolio of 37 projects totaling $3.6 billion, covering strategic sectors such as infrastructure, energy, water, sanitation and the private sector. And to support: “This year, the AfDB approved financing of $1.5 billion for the Kingdom, reflecting the importance of this partnership.”
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