On Morocco’s capital markets’ maturation process, digitalisation efforts and regional integrationHow mature is the securities market in Morocco?
FATHÏA BENNIS: Casablanca is a financial ecosystem that meets investors’ needs, both in terms of its regulatory framework and its modern infrastructure. Financial tools owned by different authorities and institutions allow Morocco to comply with most international standards and regulations. In addition, the main market stakeholders such as banks, the Casablanca Stock Exchange (CSE) and asset management companies have proceeded with upgrading their processes and IT systems over recent years.
The kingdom has reached a very high level of capital market sophistication. As a central securities depository we have noted a very positive dynamic in different market segments such as Treasury bonds or undertakings for collective investment in transferable securities, which show significant potential for development. Short-term perspectives are encouraging as well, with continuous efforts to reorganise institutions, strengthen the role of regulation entities, ease foreign exchange regulations and develop new financial products. Allowing both banks and insurance companies to offer participative financing products is an interesting means of boosting the financial sector.
Innovative products such as green bonds will also bolster the market. In addition, the CSE will set up a financial futures market, introducing derivative products and helping to diversify the range of listed instruments. We are getting closer to our goal of having a financial hub that allows local and international issuers and investors to meet, and that creates a value for both Morocco and African countries.
What benefits are there for a company that chooses to dematerialise its securities?
BENNIS: Dematerialisation of securities implies numerous benefits for a company. It enables it to significantly reduce its environmental footprint, as physical securities mean lots of paper and ink. Dealing with securities digitially also provides more flexibility, safety and transparency, as much as it decreases management costs. It helps prevent loss, theft, destruction and fraud. In terms of safety, dematerialised securities are always backed up by a second information system in case of natural disasters, cyberattacks or computer crashes. Dematerialising securities can also represent a first step towards being listed on the stock market.
Existing partnerships between MAROCLEAR and several associations – among them the Association of Moroccan Capital Investors, the Order of Chartered Accountants and the Professional Association of Stock Exchange Companies – aim to boost the dematerialisation process. There is also a lot of work with small and medium-sized enterprises to increase awareness of these benefits. Moroccan companies are often family-owned businesses, and stocking securities digitally can be of great help in the event of a transmission from one generation to another, and it can ensure more visibility for potential investors in case of capital opening.
How would you define the Moroccan approach to South-South financial cooperation?
BENNIS: Morocco is deeply rooted in Africa’s development, and South-South cooperation is considered as a top priority at the highest levels. MAROCLEAR has assisted the Central Africa Stock Exchange to successfully set up the central securities depository and regional stock exchange, both of which are now up and running successfully. Moreover, MAROCLEAR has been appointed to support the Central Bank of West African States in the implementation of its new front-to-back Treasury bonds management system.
We are convinced that the integration of African markets is the best way to promote Casablanca as a regional hub. In that regard, several partnerships are being developed, with countries such as Côte d'Ivoire, Gabon, Senegal and Nigeria. Exchanging expertise and best practices, pushing towards a common regulatory framework, and keeping each other updated on technological and safety innovation can only improve regional integration within the globalised financial environment, which is in the interest of states and private investors alike.
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