Mohamed Boussaid: "Morocco wants to anchor its economy in Africa"
9 June 2015
Read by 2614 persons
King Mohammed VI of Morocco, accompanied by a large delegation including several ministers, is currently on an African tour. The first stop on this tour was Senegal, the second was Guinea-Bissau, followed by Ivory Coast and Gabon. Exclusively, Afrik.com was able to reach the Moroccan Minister of Economy, Mohamed Boussaid, by phone in Paris, who spoke to us about this tour and the Moroccan economy.
A member of the National Rally of Independents (RNI), Mohamed Boussaid has been Minister of Economy and Finance since October 2013. In 2004, he was appointed Minister in charge of the Modernization of Public Sectors and in October 2007, Minister of Tourism and Handicrafts. In 2010, Mohamed Boussaid was appointed Wali of the Souss-Massa-Draa region, governor of the prefecture of Agadir Idda Outanane, then Wali of the Greater Casablanca region, Governor of the prefecture of Casablanca, in May 2012. He also held other positions, including portfolio manager at the Large Companies department at the Moroccan Bank of Commerce and Industry (BMCI), head of the Cabinet of the Minister of Public Works, and head of the Cabinet of the Minister of Agriculture, Equipment and Environment.
Afrik.com: At the penultimate stage of this African tour, can you tell us about its purpose and objectives?
Mohamed Boussaid: This tour confirms Morocco's desire to build an innovative partnership through South-South cooperation based on sharing, exchange of experience, and pooling our resources. This tour will allow Morocco to anchor its economy in Africa and actively participate in the development of this continent, particularly in sub-Saharan Africa, especially West Africa. The main theme of this year's tour is human development, because most of the agreements signed or projects launched concern small projects that will have a significant impact on the population and their living conditions, whether small fishing ports, health infrastructure, or solidarity agriculture. As a Moroccan citizen and member of the government, I can only be proud to see that Morocco is taking its responsibility towards this continent within the framework of its African vocation, to actively participate, given its resources and its policy, in the development and coordination with sub-Saharan African countries. It is the spirit of sharing that drives Morocco's desire to strengthen its cooperation with African countries.
Afrik.com: What are the economic stakes and impacts of the African tour you are currently undertaking with King Mohammed VI?
Mohamed Boussaid: Morocco is establishing government-to-government relations within the framework of South-South cooperation and the pooling of experience sharing. You know that Africa has enormous challenges for the future related to energy production, water issues, and the possibility of providing decent jobs for its youth, as Africa is a young continent. There are also issues related to the public sector, such as health or education, and Morocco has experience to share in some of these areas. For example, in agriculture with the "Green Morocco Plan," which involves using renewable energies, and this is now of interest to African countries. The second pillar of this tour is partnership in the private sector. Today, the Moroccan private sector has been relatively dynamic in West African countries for several years, through the banking sector, insurance, and telecommunications. The presence of the private sector and the development of private-private partnerships make this relationship mutually beneficial.
Afrik.com: What are the main agreements signed during this tour?
Mohamed Boussaid: These agreements concern the establishment of a driving group with private sector leaders to advance cooperation in this sector. Therefore, this private-private driving group will be the consultation body to find ways, sectors, and means to improve and strengthen this cooperation and development in the private sector. A total of 28 agreements were signed with Senegal, including an agreement concerning the acquisition of 850 trucks to improve Senegal's logistics in terms of transport and exchange with neighboring countries, and full autonomy within the framework of its new logistics park. Another agreement for the construction of a large university. These agreements were signed with Moroccan banks that will finance the projects. One project caught my attention: the creation of a microcredit center through a Moroccan bank for the financing of small job-creating projects. There is also the launch of a fishing village to improve the marketing conditions of fish, and many other agreements in other areas were also signed. For Guinea-Bissau, there is also an agreement that concerns me personally: the agreement on double taxation and the protection of investments to improve the installation and investment conditions for both countries. And the strong interest shown by this country in the agricultural sector has resulted in the signing of agreements in this sector, and Morocco's duty is to support this country in the development of its agriculture.
In Ivory Coast, there are extremely important projects, including a fishing village, the depollution of Lake Cocody, a vocational training center, which is one of the essential means of improving the employability of young people and their integration into the workplace. There are also projects concerning the improvement of health coverage. For Gabon, the agreements will focus on vocational training and agriculture.
"This continent represents the future of the world"
Afrik.com: How do you see the economic future of Africa?
Mohamed Boussaid: Very promising, but it depends on its political and economic stability. Africa faces obstacles, including the recent Ebola epidemic that severely affected three countries, or what is happening today in some countries where terrorist groups such as Boko Haram in Nigeria and Al-Shabaab, which threaten Africa's security, are active. Unfortunately, the continent still suffers from some problems requiring, in some cases, global solidarity and, in others, continental solidarity. But I think that today, the will to move forward is there, and this involves, first, improving collective security conditions, infrastructure, and increasing energy production, which only represents 3 or 4% of the entire continent, which is insufficient in terms of energy. The mining and agricultural sectors also have enormous potential, but the highest priority is improving governance and institutions to catch up on development. When there is political will, stability, and security, I think Africa will succeed in developing its economy.
Afrik.com: Do you think Africa could be the solution to the global economic crisis?
Mohamed Boussaid: Africa is already contributing and can contribute even more actively to the development of global growth. I think this continent is turning the page on the past to look more to the future. We must trust each other and help each other so that we can together bring forth this continent, which today represents the future of the world. Over the past ten years, Africa's economic growth has been very significant, around 5% per year. This continent continues, of course, to suffer from constraints and problems that need to be resolved within the framework of this South-South partnership. But we must also seek triangular partnerships concerning technology and the strength to support this continent on its path to progress and development.
Afrik.com: In a context of regional, continental, and global economic crisis, how does Morocco intend to get out of this impasse and develop its economy?
Mohamed Boussaid: Morocco, as an open country, has certainly been impacted by the years of crisis since 2008, but has nevertheless recorded annual growth of 4% between 2008 and 2014. The Moroccan economy has been able to withstand the crisis thanks to the strategies launched for almost 15 years and to its diversified economy, which relies on several sectors and contributes to economic growth. Today, the automotive sector is the leading export sector, not phosphates or textiles. Sectoral diversification, a strong point of the Moroccan economy, has allowed Morocco to relatively withstand the crisis. But there was also a willingness to strengthen investments, particularly in the private sector, and thus strengthen consumption. Morocco has signed free trade agreements with the EU, the United States, and countries in the Middle East and sub-Saharan Africa. The diversification of partnerships and economic relations with the world today helps to contribute to resilience in the face of economic uncertainty. For 2015, we are forecasting growth exceeding 5%, and to this end, we are insisting on restoring macroeconomic balance and reducing the budget deficit and the current account deficit. I think that the Moroccan economy is on the right track today. It is a healthy, strong, robust, and ambitious economy that is attracting more and more foreign investors. Since the beginning of the year, we have seen an increase in foreign investment of around 12%. It must be said that the Moroccan economy also has its fragility, and today it must respond faster and more significantly to the challenges of the labor market, particularly for young people.
Afrik.com: How do you feel the crisis in Morocco in this case?
Mohamed Boussaid: It is there, but less painful. In Europe, in 2015, growth is expected, which remains insufficient, but there is still a gradual improvement. And if I speak of Europe, it is because it is our main partner, but there are also the United States, which have emerged from the crisis. The crisis is behind us, but today's growth is not enough to solve the problems arising from this crisis, which are linked to the fragility of the labor market and the reduction of the unemployment rate, but I think that Morocco is on the right track for a recovery, albeit slow but encouraging.
Afrik.com: How does Morocco intend to get back on this right track to leave the crisis far behind?
Mohamed Boussaid: Today, Morocco is continuing in the face of the uncertainties of the crisis. Morocco has made a significant effort to redress its economy. There have been some impacts on its macroeconomic framework and the budget deficit, and we are working to put the macroeconomic framework back on the right track for a good balance. In this continuity, the sectoral strategies that Morocco launched a few years ago are now beginning to yield positive results, such as "Green Morocco," the strategy for the emergence and acceleration of industry in our country, the logistics strategy, the tourism strategy by 2020, and the strategy concerning renewable energies. We must continue on this path and improve the coherence between all the sectoral strategies, as they have allowed us to increase growth, improve Morocco's resilience to the crisis, and now open interesting prospects for the country, and this in continuity.
Afrik.com: In Morocco, we are witnessing a growing socio-economic gap between the poor and the rich. Today, there are more and more poor people and more and more rich people; do you intend to bridge this gap?
Mohamed Boussaid: Certainly, there is social disparity in Morocco, and this relates to the question of wealth distribution. Morocco is aware of the need to review its social model to produce more wealth, but also to distribute it equitably. A study is currently being developed by the Higher School of Economics and Social Environment, on the intangible capital of our country in order to know how to invest in this capital, find ways to distribute wealth, and thus reduce the disparity that exists between social classes and regions. Morocco is aware of the importance of this issue and is ensuring that the entire population can benefit from the wealth produced. I also have high hopes for the social reform that Morocco has launched, particularly with regionalization and appropriate partitioning. With the local elections starting soon, each region will have its own responsibilities, a regional council elected by suffrage, and substantial financial resources so that at the regional level, solutions can be found to some of the problems facing the populations. Today, thinking from the capital is no longer effective. We will therefore restore balance between the regions, which is now necessary to maintain the overall cohesion of society, which is based on regional solidarity. But the main point on which Morocco is working is employment, which helps to reduce social disparities.
Afrik.com: Today, unemployment in Morocco mainly affects young people who represent the future of the country. Concretely, how do you see the economic future in the next 10 or 20 years, and what are the prospects for these young people?
Mohamed Boussaid: For the next 10 or 20 years, studies by the World Bank and the AfDB forecast growth between 4 and 5% for Morocco, but I think we can do more given Morocco's geographical position and its open-door policy in various sectors, which allows for greater economic growth. Sectoral strategies are entering their full swing, particularly through "Green Morocco" and all the trades related to the environment and ecology. The priority today concerns employment, especially for young people. Morocco is experiencing a demographic transition, but in the next 10 or 20 years, demographic pressure will decrease in view of this transition. Many young people will claim their right to enter the labor market, and it is our duty to respond to their demands. This issue is being addressed by the government through improving growth and the employability of young people. Our education system is not perfect and does not meet the needs of the labor market. Morocco is investing heavily in vocational training and will continue to do so. We are also counting on the new industrial acceleration strategy, which will allow the growth of our industry to increase from 14% to 23% and create 500,000 jobs by 2020. The reindustrialization of the country is necessary, because during the crisis period, industry declined, while taking advantage of our potential, and the openness that the country has, through free trade agreements, so that Morocco can truly become a production and industrialization platform. And exports are an essential way to solve the employment problem in our country.
Sarah Douza.
Afrik.com
Published June 8, 2015.
Posted online June 9, 2015.
A member of the National Rally of Independents (RNI), Mohamed Boussaid has been Minister of Economy and Finance since October 2013. In 2004, he was appointed Minister in charge of the Modernization of Public Sectors and in October 2007, Minister of Tourism and Handicrafts. In 2010, Mohamed Boussaid was appointed Wali of the Souss-Massa-Draa region, governor of the prefecture of Agadir Idda Outanane, then Wali of the Greater Casablanca region, Governor of the prefecture of Casablanca, in May 2012. He also held other positions, including portfolio manager at the Large Companies department at the Moroccan Bank of Commerce and Industry (BMCI), head of the Cabinet of the Minister of Public Works, and head of the Cabinet of the Minister of Agriculture, Equipment and Environment.
Afrik.com: At the penultimate stage of this African tour, can you tell us about its purpose and objectives?
Mohamed Boussaid: This tour confirms Morocco's desire to build an innovative partnership through South-South cooperation based on sharing, exchange of experience, and pooling our resources. This tour will allow Morocco to anchor its economy in Africa and actively participate in the development of this continent, particularly in sub-Saharan Africa, especially West Africa. The main theme of this year's tour is human development, because most of the agreements signed or projects launched concern small projects that will have a significant impact on the population and their living conditions, whether small fishing ports, health infrastructure, or solidarity agriculture. As a Moroccan citizen and member of the government, I can only be proud to see that Morocco is taking its responsibility towards this continent within the framework of its African vocation, to actively participate, given its resources and its policy, in the development and coordination with sub-Saharan African countries. It is the spirit of sharing that drives Morocco's desire to strengthen its cooperation with African countries.
Afrik.com: What are the economic stakes and impacts of the African tour you are currently undertaking with King Mohammed VI?
Mohamed Boussaid: Morocco is establishing government-to-government relations within the framework of South-South cooperation and the pooling of experience sharing. You know that Africa has enormous challenges for the future related to energy production, water issues, and the possibility of providing decent jobs for its youth, as Africa is a young continent. There are also issues related to the public sector, such as health or education, and Morocco has experience to share in some of these areas. For example, in agriculture with the "Green Morocco Plan," which involves using renewable energies, and this is now of interest to African countries. The second pillar of this tour is partnership in the private sector. Today, the Moroccan private sector has been relatively dynamic in West African countries for several years, through the banking sector, insurance, and telecommunications. The presence of the private sector and the development of private-private partnerships make this relationship mutually beneficial.
Afrik.com: What are the main agreements signed during this tour?
Mohamed Boussaid: These agreements concern the establishment of a driving group with private sector leaders to advance cooperation in this sector. Therefore, this private-private driving group will be the consultation body to find ways, sectors, and means to improve and strengthen this cooperation and development in the private sector. A total of 28 agreements were signed with Senegal, including an agreement concerning the acquisition of 850 trucks to improve Senegal's logistics in terms of transport and exchange with neighboring countries, and full autonomy within the framework of its new logistics park. Another agreement for the construction of a large university. These agreements were signed with Moroccan banks that will finance the projects. One project caught my attention: the creation of a microcredit center through a Moroccan bank for the financing of small job-creating projects. There is also the launch of a fishing village to improve the marketing conditions of fish, and many other agreements in other areas were also signed. For Guinea-Bissau, there is also an agreement that concerns me personally: the agreement on double taxation and the protection of investments to improve the installation and investment conditions for both countries. And the strong interest shown by this country in the agricultural sector has resulted in the signing of agreements in this sector, and Morocco's duty is to support this country in the development of its agriculture.
In Ivory Coast, there are extremely important projects, including a fishing village, the depollution of Lake Cocody, a vocational training center, which is one of the essential means of improving the employability of young people and their integration into the workplace. There are also projects concerning the improvement of health coverage. For Gabon, the agreements will focus on vocational training and agriculture.
"This continent represents the future of the world"
Afrik.com: How do you see the economic future of Africa?
Mohamed Boussaid: Very promising, but it depends on its political and economic stability. Africa faces obstacles, including the recent Ebola epidemic that severely affected three countries, or what is happening today in some countries where terrorist groups such as Boko Haram in Nigeria and Al-Shabaab, which threaten Africa's security, are active. Unfortunately, the continent still suffers from some problems requiring, in some cases, global solidarity and, in others, continental solidarity. But I think that today, the will to move forward is there, and this involves, first, improving collective security conditions, infrastructure, and increasing energy production, which only represents 3 or 4% of the entire continent, which is insufficient in terms of energy. The mining and agricultural sectors also have enormous potential, but the highest priority is improving governance and institutions to catch up on development. When there is political will, stability, and security, I think Africa will succeed in developing its economy.
Afrik.com: Do you think Africa could be the solution to the global economic crisis?
Mohamed Boussaid: Africa is already contributing and can contribute even more actively to the development of global growth. I think this continent is turning the page on the past to look more to the future. We must trust each other and help each other so that we can together bring forth this continent, which today represents the future of the world. Over the past ten years, Africa's economic growth has been very significant, around 5% per year. This continent continues, of course, to suffer from constraints and problems that need to be resolved within the framework of this South-South partnership. But we must also seek triangular partnerships concerning technology and the strength to support this continent on its path to progress and development.
Afrik.com: In a context of regional, continental, and global economic crisis, how does Morocco intend to get out of this impasse and develop its economy?
Mohamed Boussaid: Morocco, as an open country, has certainly been impacted by the years of crisis since 2008, but has nevertheless recorded annual growth of 4% between 2008 and 2014. The Moroccan economy has been able to withstand the crisis thanks to the strategies launched for almost 15 years and to its diversified economy, which relies on several sectors and contributes to economic growth. Today, the automotive sector is the leading export sector, not phosphates or textiles. Sectoral diversification, a strong point of the Moroccan economy, has allowed Morocco to relatively withstand the crisis. But there was also a willingness to strengthen investments, particularly in the private sector, and thus strengthen consumption. Morocco has signed free trade agreements with the EU, the United States, and countries in the Middle East and sub-Saharan Africa. The diversification of partnerships and economic relations with the world today helps to contribute to resilience in the face of economic uncertainty. For 2015, we are forecasting growth exceeding 5%, and to this end, we are insisting on restoring macroeconomic balance and reducing the budget deficit and the current account deficit. I think that the Moroccan economy is on the right track today. It is a healthy, strong, robust, and ambitious economy that is attracting more and more foreign investors. Since the beginning of the year, we have seen an increase in foreign investment of around 12%. It must be said that the Moroccan economy also has its fragility, and today it must respond faster and more significantly to the challenges of the labor market, particularly for young people.
Afrik.com: How do you feel the crisis in Morocco in this case?
Mohamed Boussaid: It is there, but less painful. In Europe, in 2015, growth is expected, which remains insufficient, but there is still a gradual improvement. And if I speak of Europe, it is because it is our main partner, but there are also the United States, which have emerged from the crisis. The crisis is behind us, but today's growth is not enough to solve the problems arising from this crisis, which are linked to the fragility of the labor market and the reduction of the unemployment rate, but I think that Morocco is on the right track for a recovery, albeit slow but encouraging.
Afrik.com: How does Morocco intend to get back on this right track to leave the crisis far behind?
Mohamed Boussaid: Today, Morocco is continuing in the face of the uncertainties of the crisis. Morocco has made a significant effort to redress its economy. There have been some impacts on its macroeconomic framework and the budget deficit, and we are working to put the macroeconomic framework back on the right track for a good balance. In this continuity, the sectoral strategies that Morocco launched a few years ago are now beginning to yield positive results, such as "Green Morocco," the strategy for the emergence and acceleration of industry in our country, the logistics strategy, the tourism strategy by 2020, and the strategy concerning renewable energies. We must continue on this path and improve the coherence between all the sectoral strategies, as they have allowed us to increase growth, improve Morocco's resilience to the crisis, and now open interesting prospects for the country, and this in continuity.
Afrik.com: In Morocco, we are witnessing a growing socio-economic gap between the poor and the rich. Today, there are more and more poor people and more and more rich people; do you intend to bridge this gap?
Mohamed Boussaid: Certainly, there is social disparity in Morocco, and this relates to the question of wealth distribution. Morocco is aware of the need to review its social model to produce more wealth, but also to distribute it equitably. A study is currently being developed by the Higher School of Economics and Social Environment, on the intangible capital of our country in order to know how to invest in this capital, find ways to distribute wealth, and thus reduce the disparity that exists between social classes and regions. Morocco is aware of the importance of this issue and is ensuring that the entire population can benefit from the wealth produced. I also have high hopes for the social reform that Morocco has launched, particularly with regionalization and appropriate partitioning. With the local elections starting soon, each region will have its own responsibilities, a regional council elected by suffrage, and substantial financial resources so that at the regional level, solutions can be found to some of the problems facing the populations. Today, thinking from the capital is no longer effective. We will therefore restore balance between the regions, which is now necessary to maintain the overall cohesion of society, which is based on regional solidarity. But the main point on which Morocco is working is employment, which helps to reduce social disparities.
Afrik.com: Today, unemployment in Morocco mainly affects young people who represent the future of the country. Concretely, how do you see the economic future in the next 10 or 20 years, and what are the prospects for these young people?
Mohamed Boussaid: For the next 10 or 20 years, studies by the World Bank and the AfDB forecast growth between 4 and 5% for Morocco, but I think we can do more given Morocco's geographical position and its open-door policy in various sectors, which allows for greater economic growth. Sectoral strategies are entering their full swing, particularly through "Green Morocco" and all the trades related to the environment and ecology. The priority today concerns employment, especially for young people. Morocco is experiencing a demographic transition, but in the next 10 or 20 years, demographic pressure will decrease in view of this transition. Many young people will claim their right to enter the labor market, and it is our duty to respond to their demands. This issue is being addressed by the government through improving growth and the employability of young people. Our education system is not perfect and does not meet the needs of the labor market. Morocco is investing heavily in vocational training and will continue to do so. We are also counting on the new industrial acceleration strategy, which will allow the growth of our industry to increase from 14% to 23% and create 500,000 jobs by 2020. The reindustrialization of the country is necessary, because during the crisis period, industry declined, while taking advantage of our potential, and the openness that the country has, through free trade agreements, so that Morocco can truly become a production and industrialization platform. And exports are an essential way to solve the employment problem in our country.
Sarah Douza.
Afrik.com
Published June 8, 2015.
Posted online June 9, 2015.
