Moroccan Economy

The 90s

The 90s decade was characterized by a wave of privatizations

Affected Sectors:

Large State-owned Farms

Telecoms

Oil Refinery (Samir)

Revenues from privatization between 1993 and 2005: MAD 75.5 billion, about ($ 9.5 billion).

The 2000s

Major Exports:

Agriculture, phosphates and tourism.

Agriculture:

Largely dependent on rainfall despite irrigation policy

Farming on a small scale

Large profitable farms are subsidized and state owned + wealthy owners.

Fishing

EU contracts

Tourism

Hotels, resorts, riads, beaches, desert.

Target market: Europeans (drastic change of scenery, moderately priced, hospitable, somewhat low standards of service)

Subsidies

Bread, Milk, Oil, Butane, Sugar.

Burden on treasury

Regulated Economy

Government has a stake and a say in most sectors

Sources of Hard currency transfers:

Remittances from Moroccans residing abroad

Exports: Phosphates

Tourism

Distribution of hard currency:

Oil (Occasional Gulf countries)

Butane

Grains (Chronic shortage: wheat – Rice to a lesser extent)

Limitations of transfers of hard currency:

Businesses imports are tracked but not limited in theory

School Tuition

Leisure/Business trips limits

Healthcare procedures

Highlights/Positives

Infrastructure

Roads (Rest Stops)

Tram (Casablanca + Rabat)  (Effectiveness, Better ways of public transportation, subsidized tickets)

Internet (usage was 51% in 2011 – very high considering illiteracy 56.1%)        Source: ITU

Supermarkets

High Speed Rail Railway Infrastructure (current network needs expansion/overhauling)

Construction

Social housing (Moderately-priced housing)