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In conjunction with KPMG, OBG explores the taxation system, examining Morocco’s investor-friendly environment. OBG talks to Fouad Lahgazi, Senior Partner, KPMG, on new legislation governing public-private partnerships (PPPs).

The rise of new print titles in an increasingly digitally driven sector shows that the Moroccan media business still has the capacity to absorb innovative products, particularly if they cater for the larger, Arabic-speaking public. A 14-member commission led by the minister of communication has been set up to design a new press code to include standards for online newspapers and to create a national council for press and ethics, while a new law that would allow non-Moroccan citizens to hold up to a 30% stake in local newspapers is expected to be approved by parliament in the second half of 2013. With the rising number of media ventures in different communication vehicles, Morocco’s media sector is setting the pace for continued growth. The global economic downturn has had tangible effects on the advertising sector, with spending dropping from €524.5m in 2011 to €497.8m in 2012. Nevertheless, Morocco remains one of the main advertising markets in the Maghreb in terms of its size and dynamism. Television is still the most important of traditional media vehicles, and local channels are seeing increased competition from pan-Arab satellite channels, steadily claiming pieces of the advertising pie. The internet continues to become a more attractive medium to invest in, as new online products are further threatening the hegemony of print media outlets. Industry stakeholders met in the beginning of 2013 to discuss the development of a new code of conduct for the sector, in an effort to move away from strict sanctions by the regulatory body, the High Commission for Audio-visual Communications.

Continuing its efforts to improve literacy rates and match curricula with employers’ needs, Morocco has been increasing its investment in education. Rural enrolment levels are steadily rising, climbing from 49.7% in 2007/08 to 56% in 2010/11. Economic growth is bringing opportunities for increased participation of the private education sector, while international cooperation with new universities and research institutes is opening the door to a more globalised higher education system, positioning the country as a regional centre for tertiary provision. An increased focus on research capabilities is expected to enhance Morocco’s education capabilities and help to build a closer link between the education system and the companies working in emerging priority sectors such as aeronautics and renewable energies. This chapters contains an interview with Thami Ghorfi, President, ESCA Ecole de Management.

Galvanised by encouraging policy-driven results, as well as by the 2011 constitutional amendments that enshrined access to health care as a basic right of all citizens, Morocco is securing the gains it has made over the past two decades. While health care indicators have shown improvements in recent years, a noticeable gap continues to exist between the country’s urban and rural areas, prompting new government programmes to correct this. Although the RAMED insurance scheme should greatly increase the number of people who have access to medical services, future success will depend on revamping existing infrastructure and deploying new equipment into less developed areas. The kingdom’s pharmaceuticals sector has seen steady growth over several decades, with the number of local and foreign manufacturing units growing from 13 facilities in 1975 to 32 in 2011. Sales reached €755.7m in 2012, a 4% increase on 2011 figures. Production accounts for 70% of local consumption, but exports are still low compared to capabilities, at 10% of annual output. This chapter includes an interview with Houssaine Louardi, Minister of Health.

In the face of important environmental challenges created by rapid population growth, pollution and climate change, Morocco has established itself as a strong advocate for environmental protection and conservation. The government’s major new energy strategy focuses on diversifying energy sources with the target to produce 42% of electricity needs from renewables by 2020. Despite the presence of many environmental challenges to the kingdom, Morocco has initiated several rounds of regulations and reforms aimed at improving and expanding its environmental protection commitments. More extensive reforms are also in the process of being introduced, including a new law intended to facilitate access to information on environmental developments and regulations against soil erosion and noise pollution. With growing concerns about air and water pollution, inadequate waste management facilities, burgeoning costs for energy imports and the destruction of the kingdom’s ecosystems, the government has adopted a multitude of initiatives to combat these issues, setting an impressive example for the rest of the region. This chapter contains an interview with Ahmed Squalli, President, Amisole.

As a rapidly growing country with only modest energy resources, Morocco’s dependence on external power supplies continued to increase over 2012, with the value of energy imports jumping 11.9% year-on-year from 2011 to 2012. With 96% of energy needs met by fossil fuel imports, especially oil and coal, the country is in a precarious fiscal position as government budgets grapple with elevated oil prices. As one of the most underexplored countries worldwide for oil reserves, authorities are seeking to raise incentives for international firms through a number of schemes, including a 10-year corporate tax break for new discoveries. Greater interest from international energy groups by way of new licences for drilling rights has led to a higher volume of offshore exploration. The search for domestic hydrocarbons resources is being complemented by a focus on developing renewable energies and increasing energy efficiency, which – in addition to creating opportunities for local and foreign investors – looks set to reduce costly imports and ensure that supply keeps pace with demand. In short, Morocco’s diversification of energy sources has created a number of promising prospects for growth. This chapter includes interviews with Ali Fassi-Fihri, Director-General, National Office of Electricity and Water Supply (ONEE); and Amina Benkhadra, General Director, National Hydrocarbons and Mining Office (ONHYM).