MOROCCO

Located at the crossroads of the African, European and Arab worlds, Morocco’s unique commingling of cultures and reputation for religious tolerance have enabled it to play the role of regional moderator. A world leader in phosphates production and an increasingly popular destination for offshoring, the kingdom is making inroads into global business thanks to its “advanced status” with the EU and a series of free trade agreements. Having long served as a model for education and environmentalism, Morocco is now looking to improve its domestic life by reducing poverty and diversifying the economy.

The following is a summary of report: ‘Morocco 2009’ published by Oxford Business Group:

Politics

The political system is a constitutional monarchy with a parliamentary form of government – as such, the king appoints the prime minister following elections. The largest parties are the centre-right Independence Party, the mainstream Islamic Justice and Development Party and the centre-left Socialist Union of People’s Forces, with a fourth, the recently formed Party for Authenticity and Modernity, gaining sizeable support in 2009. The government’s powers are circumscribed by the throne, and voter turnout remains low (37% of registered voters), although local elections held in June saw greater community participation. To counteract public corruption, King Mohammed VI outlined an extensive reform plan which targets better training of officials, ethics training, improved safeguards and accountability, and greater procedural transparency. A signee of the UN Convention Against Corruption, Morocco has also introduced reforms that have helped reduce money laundering and improve the public procurement process. With ties to Africa, the Middle East and Europe, the kingdom often plays the role of moderator in international discussions, including those pertaining to the Arab-Israeli conflict. While the US has been a historic political ally, the EU is Morocco’s biggest trade partner, accounting for three-fifths of trade. Diplomatic relations with Algeria have been strained by a territory dispute in the Western Sahara, with an Algerian-backed guerrilla group, the Polisario Front, seeking independence for the region. In response to rising levels of urban poverty, the government has staged a massive relocation and social support programme, Cities Without Slums, over the past six years. Progressive legislation has given women more freedom in marriage and public life, and the king has introduced multiple initiatives to bridge the gender gap in education. With up to 5m Moroccan workers in Europe, the country’s second-largest source of foreign revenue after exports is remittances from expatriates. Joint EU-Morocco efforts to stem illegal migration flow to Europe have reduced the number of migrants reaching Spain by as much as 60% in 2007.

His Majesty Mohammed VI, King of Morocco, gives his viewpoint on the successes of the last decade and a vision for the next. This chapter also provides interviews with Miguel Sebastián Gascón, Spanish Minister of Industry, Trade and Tourism, and Hans-Gert Poettering, MEP and former President of the European Parliament.

Economy

The economy has remained insulated from the worst effects of the world crisis. Due in part to the rebounding of the agricultural sector, which had suffered from a 2007 drought, the economy expanded 5.6% in 2008, with 5.7% growth forecasted for 2009. Morocco’s economy is the 61st largest in the world, according to the IMF, though its per-capita GDP is low compared to similarly ranked nations. King Mohammed VI has recently launched two national economic strategies: Plan Maroc Vert and Plan Emergence. The first seeks to create 1.5m jobs in the agriculture sector, and add around €7.65bn to GDP through €10.8bn of investments by 2020, while the latter will establish new industrial zones and boost training to increase efficiency. Additionally, phosphates production, which accounted for more than a third of 2008 exports, is being restructured for greater value. A reliable European ally in fighting terrorism, drug trafficking and illegal immigration, Morocco was granted an “advanced status” from the EU in 2008, shoring up bilateral trade relations with Europe. The official unemployment rate reached a 10-year low of 8% -- the rate in cities was 12.6%, while in rural areas it was just 3%. Inflation remains low at 3.9% in 2008 as the government maintains a restrictive currency regime. The government’s budget surplus increased to 0.4% of GDP in 2008, up from 0.2% the previous year, despite privatisation revenue dropping to zero. As commodity prices surged, the government spent an all-time high on subsidies in 2008, which it slashed at the start of 2009 to offset lower tax revenues. In 2008, foreign direct investment (FDI) declined for the first time since 2004, retreating 29% in 2008 to Dh27.1bn (€2.4bn), and the balance of payments’ current account posted a deficit for the first time in eight years on the back of the spiralling trade deficit and a decline in remittances and tourism revenue. Morocco’s Customs Department has embarked on a series of reforms to improve its efficiency, such as a €9m automated clearance system enabling a number of procedures to be completed electronically. The country fell eight places on Transparency International’s 2008 Corruption Perception Index to 80th out of 180 nations, indicating an outstanding problem the government must address in order to attract investors.

This chapter provides interviews with Salaheddine Mezouar, Minister of Economy and Finance; Abdellatif Maâzouz, Minister of Foreign Trade; Faouzi Chaabi, Administrator of Ynna Holding; and Donald Kaberuka, President of African Development Bank.

Banking

Morocco’s banks have been largely unaffected by the credit crisis due to their limited connection to global financial markets. The number of people with a bank account increased from 25% in 2007 to 29% in 2008, while deposits rose by 11.1% to a record Dh572.3bn (€51.5bn), 20% of which belong to Moroccan nationals living abroad. Remittances from expatriates, however, have fallen in 2009, with transfers from the 3.1m-strong community retreating 14% to Dh14.6bn (€1.31bn) through April. Rapid expansion of banks’ distribution networks may have come at the cost of security – in May 2009, the Ministry of Interior ordered 270 banks to increase their security measures to reduce the number of bank robberies in the country. Private banks are increasingly moving towards universal banking, buying companies in all segments of the financial industry. While GDP advanced 5.6% in 2008, outstanding loans jumped 23% to a record Dh519.3bn (€46.74bn) as more people bought and furnished property. As the rest of the world saw lending dry up, Moroccan banks issued more loans, showing 2.6% growth in the first five months of 2009. From a high of 19.4% in 2004, non-performing loans in 2008 fell to 6% of outstanding loans, with overall provisions standing at a five-year high of 75.3% by December. Due to limited exposure to toxic assets combined with an increase in deposits and viable loans, overall earnings increased, with some banks posting a 30% gain in profit. New bond issues in 2008 jumped 20% to €585m, with banks raising most of the funds. After dropping eight places on the Corruption Perception Index in 2008, the government targeted reducing financial crime, establishing a unit in December to crack down on money laundering. At its peak in 2007, the banks’ minimum reserve requirement was 16.5%. To fight liquidity, the bank reserve ratio was cut from 15% to 12% in December 2008, then reduced further to 10% in June 2009, which was partially offset by a solvency ratio increase to 10%. Despite fiscal and regulatory barriers to entry, Middle Eastern investors have demonstrated interest in Islamic banking in Morocco.

This chapter provides interviews with Pierre-Louis Boissière, Chairman of the Executive Board, Crédit du Maroc; Anass Alami, Director-General of Caisse de Dépôt et de Gestion; and Mohamed Damak, Associate at Standard & Poor’s Financial Services. Abdellatif Jouahri, Governor of Bank Al Maghrib, offers his viewpoint on development prospects and challenges ahead.

Capital Markets

The financial crisis did not cause much of a slump on the Casablanca Stock Exchange (CSE), with the Morocco All Share Index falling less than 14% in 2008 (compared to the Saudi Tadawul All Share Index’s drop of 57% and Egypt’s CASE 30’s 34% slide). Trading around 80 companies, the stock exchange is the sixth largest in the Arab world and the 3rd ranked in Africa. At the end of July 2009, market capitalisation stood at €48bn. The capital markets regulator lifted restrictions on buyback rules in 2008, curbing market correction. Of the five IPOs that took place in 2008, all were oversubscribed by more than four times, mostly by retail investors betting on the past history of post-IPO rallies. However, 4 of the 5 companies that went public in 2008 saw their shares fall below IPO price. The government has initiated fiscal incentives to increase IPOs and to attract listings by foreign companies, though market conditions remain unfavourable. As a result, some companies are turning to the fixed-income securities market for financing. Banks accounted for a great deal of the bourse’s growth, as the central bank raised the solvency ratio to 10% from 8%, requiring banks to increase their tier 1 capital. Monetary authorities have recently initiated reforms to allow institutional investors to buy some financial instruments on international markets. In 2008, the holdings of foreign institutional investors totalled €13.4bn, some 27.5% of the market. With exports to Africa standing at less than 6%, the CSE is looking to increase the flow of goods and services between countries by encouraging dual listings.

This chapter provides interviews with Karim Hajji, CEO of Casablanca Stock Exchange, and Younes Benjelloun, Partner & Board Member of CFG Group.

Insurance

The insurance sector, contributing 3% to GDP, continues to be a regional leader, ranking second continentally. The largest market segment is non-life, taking a 66.7% share with €1.18bn in total premiums for 2008, up 11.5% from 2007. Within that, automobile is the largest, bringing in 30.3% of total insurance revenue in 2008. However, life is the fastest-growing segment, with a 12.3% increase in 2008 with Dh5.8bn (€522m). The growth has been driven by bancassurance, which now holds 50% of the life insurance market. As the result of numerous mergers, four insurance companies now hold a 69.5% combined market share, and the process of consolidation continues among the 16 total players. Breaking the Moroccan Mutual Agriculture Insurance Agency’s monopoly on coverage, sector leader Wafa Insurance entered the agricultural insurance market in 2009, a vote of confidence for the Plan Maroc Vert scheme for agricultural development. Other niches are being explored, including micro-insurance targeting the low-income population. Comprehensive restructuring of Morocco’s pension fund system will begin in 2010. Companies are competing to add new products to the automobile segment, with segment leader CNIA SAADA Assurance opening Check Auto Express (CAE), a fast-track motor indemnity centre, in February 2009.

This chapter provides a roundtable with Said Ahmidouch, General Director of Caisse Nationale de Sécurité Sociale; Khalid Cheddadi, CEO of Caisse Interprofessionnelle Marocaine des Retraites; and Mohamed Bendriss Benahmed, Director of Caisse Marocaine des Retraites.

Tourism

Tourism has seen solid growth in recent years, rising from 4.4m visitors in 2001 to 7.4m in 2007. The government had targeted 10m tourists by 2010, a figure that looks increasingly difficult in the current financial climate. Tourist volume grew 6% in 2008, stopping short of the 8m mark. However, hotel nights and tourist income showed small drops, indicating that that while visitors are still travelling to Morocco, they are taking shorter breaks and spending less. A 10% drop in receipts is expected for 2009. The percentage of Moroccan nationals living abroad who come back to travel comprises a significant portion of the total visitors. To counteract flagging tourism volume, the government launched CAP 2009, a plan to better promote Morocco globally as a tourism destination and to increase tourism in untapped markets, including Russia and China. Additionally, the creation of resorts and leisure facilities tailored to locals is aimed at increasing domestic travel to 2m trips per year. Medical tourism is also getting a boost from the construction of a Dh1.8bn (€162m) health and wellbeing complex. Six integrated resorts costing €4.05bn are being built in accordance with Plan Azur, a national tourism strategy -- the first of these, Saidia, was inaugurated in June. Total investment in tourism is expected to reach €7.2bn over the next five years, mainly from the banking and financial sectors. Tourism authorities are cracking down on unregulated businesses operating in the sector, while the government signed an agreement with the National Hotel Industry to ensure that job offers will be made available to the best students in hotel training programmes.

This chapter provides an interview with Othman Cherif Alami, President of the National Tourism Federation.

Environment

While Morocco is already a model of water management in the MENA region, upgrades to its water system under the National Wastewater Management Programme should further improve wastewater treatment and maximise efficient water usage. Authorities are promoting better water rationalisation in agriculture, which uses 80% of water resources, by replacing existing irrigation systems with micro- irrigation and drip networks. A net energy importer, Morocco launched the National Renewable Energy and Efficiency Plan in February 2008 to develop alternative energy to meet 15% of its domestic needs and increase the use of energy-saving methods. It is expected to create more than 40,000 jobs and stimulate over €4.5bn in investment by 2020. The National Plan for the Development of Solar Thermal Energy, formulated in 2001, aims to install 440,000 solar-powered water heaters by 2012, of which 235,000 are completed. In May 2009, the World Bank approved a €121m loan to help finance the implementation of the kingdom’s solid-waste management programme, which targets a 90% waste disposal rate for urban areas by 2021. The government is taking measures to mitigate the harmful effects of tourism on Morocco’s natural resources, while increasing incentives for a growing niche of ecotourism projects. As of January 2008, hotels with good environmental practices will receive a Green Key label as part of a programme by the Mohammed VI Foundation for the Protection of the Environment. Under a ten-year plan for the protection of natural resources, 40,000 to 50,000 ha of forests are replanted annually with indigenous trees.

This chapter provides an interview with Said Mouline, Director-General, Center for Development of Renewable Energies (Centre de Développement des Energies Renouvelables).

Transport

A five-year transport sector strategy was unveiled in 2008. With a €11bn budget for infrastructure works, the government will focus on large-scale public projects. Increased tourism -- the country saw nearly 8m visitors in 2008, and is hoping for 10m for 2010 -- has necessitated the expansion of airport capacity, with a target of 30m by 2010. Casablanca Mohammed V, Morocco’s principal airport, is undergoing a €46m terminal upgrade, while Marrakech and Oujda airports will also receive new terminals. Casablanca is slated to become the world’s first “green airport” by 2010, with wind power generating 90% of its energy needs. In April 2009, the African Development Bank provided Morocco a €240m loan to upgrade airport infrastructure. International passenger traffic almost doubled between 2003 and 2008 as new airlines entered the sector and flight routes were added as part of an “open-skies” agreement with the EU. In the low-cost sector, European giants RyanAir and easyJet now compete with the national carrier Royal Air Maroc, along with Jet4you and newcomer Air Arabia Maroc. Africa’s fourth-largest port, Casablanca Port is being expanded to accommodate growing container traffic, with the construction of Tanger-Med, set to be one of the world’s largest ports, also helping to improve Morocco’s maritime connectivity. Freight turnover is expected to triple by 2015 through the development of railway infrastructure, such as a 43-km line linking Tanger-Med to the national rail network, inaugurated in June 2009. The €1.8bn contract for a national high-speed train network was awarded in April 2009 to a joint venture between Société Nationale des Chemins de Fer France (SNCF) International and Inexia. The train will operate at about 200 km per hour, reducing travel time between Casablanca and Tangier from five hours and 45 minutes to two hours and 10 minutes. A comprehensive expansion and diversification of Morocco’s national road networks is underway, with a 510-km Mediterranean Expressway on the Algerian border due for completion in 2011. Casablanca Transport Company, created in 2008 to manage the city’s public transport infrastructure, began construction on a tramway network in February 2009.

This chapter provides interviews with Driss Benhima, Chairman and CEO of Royal Air Maroc (RAM), and Mohammed Abdeljalil, President of Marsa Maroc.

Construction & Real Estate

Following the global construction slowdown, Morocco is moving government-backed social housing projects to the front of the queue as demand for high-end projects decreases. Most sector indicators, from cement sales to FDI, dropped while completion times were extended in the case of many large projects. Six large resorts worth Dh50bn (€4.5bn) are still in the works, part of the national tourism strategy Plan Azur. Infrastructure projects are also underway, including construction on two dam projects, two tramway systems and road work in rural areas. The south of the country, which has unrealized economic potential, has received particular attention recently, with €635m spent on development over the past four years. The New Cities programme, which envisions the creation of 15 new cities to decongest Morocco’s main urban centres, began with the construction of the 1300-ha city of Chrafate, due for completion in 2020. International funding from Japan and Saudi Arabia is helping Morocco to realize its infrastructure projects.

Following the international trend, Morocco’s real estate sector suffered in 2008 as the housing bubble burst. In previous years, the luxury market had expanded greatly, driven in part by foreign demand, but high-end property fell 10-15% in price in 2008. Demand for low- and medium-income housing continues to be strong, with an estimated deficit of 610,000 units. The government is working to reduce the housing shortage to 27% by 2012, with social housing accounting for 129,000 out of a total of 300,000 units built in 2008. The New City programme will also provide a glut of housing, with 1700 homes built in the new city of Tamesna by April 2009. Moreover, citizens are receiving government aid in the form of loans to help with the purchase of homes. Some tourist-related real estate projects under the Plan Azur are on hold due to the departure of foreign developers, but the first of Morocco’s seaside resorts, Saïdia, celebrated its opening on June 2009. While high-end office complexes abound, many major cities are facing a shortage of affordable office space.

This chapter provides interviews with Hamza Kabbaj, Director of Société Générale des Travaux du Maroc, and Karim Belmaachi, Managing Director of Alliances Développement Immobilier.

Agriculture

An economic pillar, the agriculture sector employs 40% of the population and accounts for between 19% and 21% of GDP, though productivity is always at the mercy of climactic fluctuations. The outlook for 2009’s harvest looks optimistic, with the High Planning Commission predicting 6.7% sector growth, up from 5.8% in 2008. The Green Morocco Plan (Plan Maroc Vert), launched in April 2008, outlined a national strategy for long-term agriculture development, which includes boosting sector GDP contribution to up to Dh100bn (€9bn) annually from Dh38bn (€3.42bn) in 2008. Additionally, it targets modernizing production and boosting quality to make Moroccan goods attractive in global markets. Fruit and vegetables production, accounting for 30% of total agricultural employment, has doubled over the last decade to 7.2m tonnes in 2008. Due to fluctuations in production and poor marketing, Moroccan olives are losing out to more competitive producers such as Tunisia on global markets as well as domestically. With about 3000 km of coastline, Morocco is the continent’s top fish producer and 25th in the world. It remains the world’s largest sardine exporter, with sardines accounting for 90% of canned goods exports. While most of its fish is exported to the EU, the fishing industry is looking to penetrate new markets in North America and the Middle East and is showcasing at international trade fairs.

This chapter provides interviews with Abed Yacoubi Soussane, President of Mutuelle Agricole

Marocaine d’Assurances/Mutuelle Centrale Marocaine d’Assurances (MAMDA/MCMA), and Aziz Akhannouch, Minister of Agriculture and Fisheries.

Telecoms & IT

The government has launched several initiatives in recent years to develop its ICT industry. The 2005 Plan Emergence, designed to increase exports across sectors, led to the creation of Casanearshore and Rabat Technopolis offshoring centres, with three more tech-focused centres in the pipeline. A new four-year Impact Plan aims to further boost offshoring potential, as well as support small and medium-sized business (SME) computerisation, e-government and broadband access and promote entrepreneurship in new and niche ICT areas, ultimately bringing sector revenue to $1.7bn by 2013. A Dh100m (€9m) fund has been established to provide loans to SMEs with innovative IT projects, while the government is taking action to computerise its activities, now allowing people to pay local taxes online. Around 40 government services should be online by 2013. A low internet penetration rate (21%) presents a challenge for the development of e-commerce. 3G technology, introduced to the market in 2007, shot up 527.5% in 2008 to reach 268,131 subscribers, now accounting for 35.4% of Internet connections. In 2009, IT research and consulting firm Gartner placed Morocco in its top 30 destinations for offshoring. To address a shortage of skilled workers in the offshoring sector, which is projected to create 100,000 jobs by 2015, the government aims to train 22,000 graduates by the end of 2009.

The telecoms market generated more than $3.75bn in turnover in 2008, or 7% of GDP. The state’s monopoly on telecommunications ended in 2000 when the first private operator, Meditel, was granted a mobile licence, though partially state-owned Maroc Telecom remains the sector leader with a 64.36% mobile market share. The third operator, Wana, holding only 1.91% of the mobile market, was granted a 2G mobile licence by the telecoms regulator in February 2009 to increase competition. The mobile penetration rate rose from 65.7% at the end of 2007 to 74% at the end of 2008. Prepaid cards dominate the mobile market with a share of 95.96%. Prepaid subscriptions grew 13.86% in 2008, while postpaid increased 15.25%. Fixed lines also enjoyed a renaissance in 2008, growing 24.96%, which necessitated the addition of an extra digit to existing phone numbers. With Spain’s Telefonica, its former investor, Meditel launched Africa Gate, a 2520-km fibre-optic network that links Morocco and Spain, in September 2008. Maroc Telecom is hoping to become more of a regional player, with ambitious plans to expand into Mali and set up a fibre-optic cable link with West Africa. Due to a multilingual workforce and low costs, Morocco’s call centres are increasingly attractive to European companies.

This chapter provides an interview with Mohamed Lasry, General Director of Casanearshore.

Industry & Retail

Though parts of the Moroccan industrial sector performed well in 2008, especially on the local market, several indicators point towards a slowdown. Textiles production saw a 3.3% drop, leather fell by 12.5%, and metal products by 40.9%, mostly as a result of a decrease in international demand. The textile sector shed nearly 50,000 jobs in 2008 as sales fell by 10.5%, while phosphates sales plummeted 59.5% in February 2009, partly due to the product’s increased price. However, as the world’s largest phosphates exporter, Morocco is expecting a rebound and moving forward with production expansion. The auto industry also received a drop in international orders, although the local car market grew by 17% in 2008. Nissan withdrew from the joint construction of a factory with Renault in February 2009. However, Morocco remains an attractive destination for low-cost carmakers on account of its competitive pricing. Pharmaceuticals sold well domestically, with average expenditure per person rising from €26 in 2007 to €30.60 in 2008. On the back of a construction boom in recent years, cement companies saw a sharp decrease in sales in 2008, though the local market grew 9.9%. Several new steel factories will open in the near future, creating a surplus of production capacity which should force producers to widen their export market. Despite a free trade agreement that went into effect in 2006, Morocco’s exports to the US have been limited (reaching €1.68bn in 2008) due to an unfavourable dirham/dollar exchange rate, the inadequate capacities of small and medium-sized enterprises (SMEs), and a lack of visibility. To help develop export activities, the Ministry of Foreign Trade has formulated the Maroc Export Plus plan for 2009, which involves the promotion of Moroccan products worldwide under the “Made in Morocco” label. Trade relationships with Brazil and Canada have been bolstered, while the second National Pactfor Industrial Emergence aims to attract more FDI, support SMEs and improve the business climate. A consortium of Moroccan banks will grant the National Ports Agency a Dh1.2bn (€108m) loan to develop ports through infrastructure upgrades and studies to improve information systems and port security.

Retail sales have been less affected by the financial crisis, with only some non-food products, including clothing and household goods, posting slight declines. Among foreign brands, US marks are gaining ground due to a recent free trade agreement. While designer fashion is popular -- European fashion houses Missoni, Roberto Cavalli and Louis Vuitton all opened stores in Morocco in 2009 – counterfeit goods are as well, with 53% of women surveyed admitting to buying them. The electronics sector saw a 14% sales increase over 2007, though growth has slowed in recent years. Though the approximately 400,000 small grocers in the country still account for 91% of the total market, the supermarket segment has expanded in the past year to include French hypermarket chain Carrefour and Turkish discount store BIM. When Morocco Mall opens in Casablanca in 2010, it will be North Africa’s largest mall with 15m visitors per year forecast. Franchising grew by 8.2% in 2008 -- almost 80% of these franchises are foreign, and of these some 44% are French.

This chapter provides interviews with Ahmed Reda Chami, Minister of Industry, Trade and New Technologies; and Dr Farid Bennis, Honorary President of the Industrial Pharmacists National Order of Morocco and Vice President of the Moroccan Pharmaceutical Industry Association.

Media & Advertising

With no new TV licenses granted by the Higher Council for Audiovisual Communication due to fears of sector destabilisation, the TV landscape remains dominated by Arab satellite channels, which have a penetration rate of 66.2%. In comparison, 56.9% of the population watches local channels and 6.6% view French channels. State broadcaster Société Nationale de Radiodiffusion et de Television has plans to launch an Amazigh (Berber) television station for the 25-40% of the population speaking the language. After a call for applicants, four private regional radio licences were granted by the Council in February 2009, which will further contribute to the sector’s diversity following its 2007 liberalisation. Eco Medias, in cooperation with the Ecole Supérieure de Journalisme in Paris, recently opened a journalism school in Morocco. Press freedom, however, remains a challenge – three Moroccan newspapers were fined in June 2009 for criticising Libya’s Colonel Muammar Al Qaddafi. A new press distributor, Al Wassit, entered the market in 2009, joining Sapress and Sochepress, which has a 40% market share. While internet subscribers remain low, an estimated 21% of the population accesses the internet regularly at internet cafes and via other means. Google, YouTube and Yahoo, social networking sites Facebook and Skyrock, and online Arabic-language forum Star Times are the most visited sites by Internet users.

Insulated from the global downturn, the advertising sector is expected to see 5-7% growth in 2009, although the markets most affected by the crisis have scaled back on advertising. Morocco’s advertising spending per capita is higher than its neighbours at $17.70, but much lower than Europe. Total advertisement spending reached Dh4.2bn (€378m) in 2008, with the three telecoms companies (Maroc Telecom, Meditel and Wana) as the biggest spenders. The four main advertising media are TV (with a 47% market share), press (22%), outdoor (20.2%) and radio (11%), which is set to gain a bigger share with the advent of four new stations. Internet advertising has been slow to take hold, earning €3.15m in 2008. In 2009, the public TV and radio provider introduced a new pricing system for advertisers based on blocks of time, with different fees in place depending on the time of day. Marocmétrie, new audience measurement system, allows advertisers to gain detailed information about ad impact by recording the television viewing habits of households across Morocco.

This chapter provides an interview with Khalid Belyazid, Managing Director of Eco Medias.

Health & Education

In 2008, the Moroccan government launched a five-year plan to upgrade the health system, aimed at making treatment accessible to the least privileged sections of the population while rationalising the overall costs of care and medicines. This involves greatly increasing the role of the private sector, which has hitherto been targeted at wealthy patients, and allowing the public sector to access its facilities and equipment. Training programs under the 2008-2012 plan aim to increase the number of doctors, which currently stands one per every 1800 inhabitants, to European standards, adding 3300 doctors a year by 2020. Efforts are being directed at increasing special services, including cancer treatment centres, and the public sector will receive its first organ bank under the five-year plan. The national health insurance programme, the Assurance Maladie Obligatoire (AMO), will be expanded to cover 80% of the population by 2012 (as opposed to 34% now), with 100% of low-income citizens covered under the Régime d’Assistance Médicale (RAMED). Morocco’s health sector is also receiving help in the form of international funding. The EU is planning to give the kingdom €86m for segments of the population not covered by insurance, part of an overall €317m to support sector specific programmes such as education and investment.

The education sector continues to undergo reforms dictated by the National Charter, published in 1999.

However, some of its key targets, including ensuring that a larger number of children complete the basic nine-year compulsory cycle, remain unmet. As a result, a three-year, Dh3bn (€270m) emergency plan was initiated to boost enrolment and matriculation figures and improve teaching standards and management of the sector. Within two years, overall school enrolment is set to increase by 4% from its current level of around 6.5m students. The Ministry of Education dedicated Dh1.5bn (€135m) to the creation of preschools, ensuring that all Moroccan children have access to them by 2015. Spending on education has accounted for more than 5% of GDP every year for the past two decades. The amount earmarked for the sector in 2009, some €4.3bn, is a 23% increase over 2008. Developing infrastructure is also a concern of policymakers -- the national Génie programme aims to increase the use of modern technology in the education system.

This chapter provides a viewpoint by Ron Bruder, Founder & CEO of the Education For Employment Foundation, on youth unemployment.

The Business Guide

In conjunction with KPMG, OBG explores the taxation and accountancy systems, examining the environment for investors. OBG also introduces the reader to the different aspects of the legal system in Tunisia in partnership with Kettani Law Firm. The legal coverage provides a viewpoint from Rita Kettani, a partner at Kettani Law Firm, on the open skies treaty with the EU.

The Guide

This section provides information on hotels, government and other listings, alongside useful tips for visitors on topics like currency, visas, language, communications, dress, business hours and electricity.

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