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Lacking the hydrocarbons reserves of some of its neighbours, Morocco has had to rely on imports of fossil fuels to develop its economy. This has left the country exposed to fluctuations in global energy prices and has impacted the kingdom’s budgetary position. However, the country has taken measures to reduce dependence on energy imports. Over the last several years the kingdom has been able to develop know-how in the renewable sector, expand its clean energy production capacity, and establish a new industry that is helping to attract investment and create jobs. All this has helped to inject dynamism into the kingdom’s energy sector, and this momentum is likely to continue over the coming years. In order to be able to build on these achievements, however, the sector authorities will need to step up regulatory efforts to properly define market conditions. This chapter contains an interview with Bertrand Piccard, Founder and President, Solar Impulse Foundation, and UN Ambassador.

Between 1985 and 2016 industry contributed an average of about 19% to GDP, and in 2017 this increased, raising the sector’s contribution to around 25% of GDP. The country’s industrial offering is diverse and includes products in the automotive, electronics, textile, offshoring, pharmaceuticals, aerospace, chemicals and electronics segments. The sector will continue to play an integral role in Morocco’s economy and is set grow an additional 5% by 2022. However, it must first diversify its offering, which could include further shifting to high value-added manufacturing such as aerospace or automotive, and increasing overall exports. The kingdom also has plans to leverage its textile industrial capabilities to become a global sourcing centre for fast fashion and denim. The retail sector in Morocco is expected to continue to grow due to demographic shifts. In addition, higher internet penetration rates and the increasing popularity of online shopping are all levers for sector growth. This chapter contains interviews with Othman El Ferdaous, Secretary of State for Investment, Ministry of Industry, Investment, Trade and Digital Economy; Jean Christophe Quemard, Executive Vice-President for the MENA region, Groupe PSA; Farid Bensaïd, CEO, Ténor Group and President, National Federation of Insurance Agents and Brokers; and Abdellatif Kabbaj, Managing Director, Soft Group.

Building on several years of sustained growth, Morocco’s insurance sector is implementing a series of significant reforms that appear set to boost future expansion. New rules have changed key aspects of insurance distribution and established a range of new compulsory products that are set to boost the overall issuance of premiums. In addition, these reforms are expected to expand the country’s product offering, including the creation of a takaful (Islamic insurance) segment. Morocco already has one of the best-developed insurance markets in the region and these changes – bolstered by an increase in competition in the life insurance segment – should help to support sustained sectoral performance over the medium and long term. This chapter contains interviews with Hassan Boubrik, President, Supervisory Authority of Insurance and Social Welfare; and Coenraad Vrolijk, Regional CEO, Allianz Africa.

Economic progress and the country’s natural position as an investment bridge between Europe and Africa have allowed Morocco to establish one of the continent’s largest and most sophisticated capital markets. Despite its advantages, however, the Casablanca Stock Exchange has been affected by low levels of liquidity, a scarcity of new listings and an overall lukewarm performance. One significant difficulty has been the bourse’s inability to attract new firms and spur the interest of a large volume of individual investors. Still, the government’s new roadmap is likely to positively impact the stock exchange over the medium term by helping improve offerings and boost demand. Government plans to list certain public companies and attract private investors is also expected to improve performance. This chapter contains interviews with Nezha Hayat, Chairperson, Moroccan Capital Markets Authority; Karim Hajji, General Manager, Casablanca Stock Exchange; and Younes Benjelloun, Partner and CEO, CFG Bank.

In hand with sustained economic growth in recent decades, Morocco has been able to establish one of the region’s most competitive and sophisticated banking sectors. This has translated into significant penetration levels for banking services, a wide array of products and a handful of large-scale banking players with international reach across the continent. Despite the years of development, however, the sector has had to contend with slower rates of lending and a lukewarm economic context of late. This has led to some strategy realignment, both by the country’s lenders as well as by the monetary authorities, who are keen to maintain the industry’s role as a dynamic factor in the kingdom’s economy. This chapter contains interviews with Abdellatif Jouahri, Governor, Bank Al Maghrib; and Ismail Douiri, General Manager, Attijariwafa Bank.

While 2018 marked a deceleration from the economic growth of 2017, Morocco’s overall picture continues to look stable: the IMF forecast GDP growth of 3.2% for 2018, a substantial figure, and projected growth of 3.2% for 2019. A number of key developments are expected to support economic growth in coming years. A rapidly improving business environment and infrastructural base, the gradual liberalisation of the local currency, and increased investment into export-oriented industries are all set to raise living standards and drive the emergence of a large national middle class. Broader growth is not without its challenges, however, and officials are likely to put more effort into overcoming entrenched socio-economic problems and stubborn unemployment. Still, the medium-term upward trajectory of the nations’ GDP also appears to be holding steady, which will bring added help in tackling such issues. This chapter contains interviews with Mohamed Benchaâboun, Minister of Economy and Finance; Moulay Hafid Elalamy, Minister of Industry, Investment, Trade and Digital Economy; Salaheddine Mezouar, President, General Confederation of Moroccan Enterprises; and Said Ibrahimi, CEO, Casablanca Finance City Authority.