Latest news with #AhmadouMoustaphaNdiaye
Morocco World
26-03-2025
- Business
- Morocco World
World Bank: Morocco's Economic Growth Set to Reach 3.6% in 2025
Doha – Morocco's economy is projected to grow at 3.6% in 2025, up from 3.2% in 2024, according to the World Bank's latest economic update titled 'Prioritizing reforms to boost the business environment.' The report indicated that despite drought conditions affecting agricultural output in 2024, non-agricultural growth increased to 3.8%, driven by industrial sector revival and gross capital formation rebound. Inflation has dropped below 1%, enabling Bank Al-Maghrib to ease monetary policy. 'Morocco's economic outlook remains robust, characterized by controlled inflation, a strong external position, a steady path towards fiscal consolidation, and a stable debt-to-GDP ratio,' said Ahmadou Moustapha Ndiaye, Division Director for the Maghreb and Malta at the World Bank. The agricultural sector is expected to show improvement in 2025, with agricultural GDP projected to expand by 4.5%. Non-agricultural growth is anticipated to decrease to 3.5% due to base effects, as sectors that demonstrated strong growth in 2024 will continue to grow robustly but at a slightly lower rate than the year before. Recent rainfall has contributed to more favorable conditions for the agricultural sector, with agricultural GDP expected to stabilize at around 2.6% growth in the medium term, according to Javier Diaz Cassou, Senior Principal Economist at the World Bank in Morocco. Read also: Fitch Solutions: Moroccan Economy to Grow 5% in 2025 Despite Agricultural Headwinds The country's external position remains stable, with a moderate current account deficit supported by increasing foreign direct investment inflows. The debt-to-GDP ratio continues its gradual decline, expected to settle between 67% and 68% over the projection period. The budget deficit is following a trend of progressive reduction toward pre-pandemic levels. The labor market presents ongoing challenges. While urban areas created approximately 162,000 jobs in 2024, employment growth has not kept pace with demographic changes. Over the past decade, the working-age population increased by more than 10%, while employment grew by only 1.5%. This gap stems from lingering post-pandemic shock impacts, delayed reform effects, and low women's participation in the labor market. The global lender's analysis shows Morocco outperforms similar-income countries in regulatory frameworks and public services but faces operational efficiency challenges. The Bretton Woods institution recommends that the country address high costs and barriers to formal hiring, improve transparency in dispute resolution, expand digital processes, and complete the legal framework for insolvency cases. Recent inflationary pressures have impacted household purchasing power, leading to decreased confidence indicators. However, Diaz Cassou notes that 'inflation should remain controlled despite certain trends observed during Ramadan, a period when price pressures are traditionally observed.' The current account deficit is expected to widen slightly while remaining notably below historical averages, reflecting the recovery of domestic demand in the Moroccan economy. Capping the discussion, the senior economist spotlighted the public sector as a pivotal force shaping Morocco's economic trajectory, noting its expanding role aligns seamlessly with the ambitions of the New Development Model. Tags: Moroccan Economyworld bank
Zawya
26-03-2025
- Business
- Zawya
Strategic and Targeted Reforms Can Strengthen Morocco's Business Landscape: Report
The Moroccan economy demonstrated resilience and positive trends in 2024 despite facing significant challenges. Recent rainfall has alleviated drought conditions, contributing to a more favorable outlook for the agricultural sector. Overall growth is projected to increase to 3.6 percent in 2025, according to the World Bank's latest economic update for Morocco, "Prioritizing reforms to boost the business environment". In 2024, Morocco's overall Gross Domestic Product (GDP) growth decelerated to 3.2 percent due to drought impacts. However, non-agricultural growth increased to an estimated 3.8 percent, driven by a revitalized industrial sector and a rebound in gross capital formation. Inflation fell below 1 percent, allowing Bank Al-Maghrib to begin easing monetary policy. Morocco's external position continues to be stable, with a moderate current account deficit financed by increasing foreign direct investment inflows, supported by strong investor confidence. Despite spending pressures, the debt-to-GDP ratio is gradually declining. Significant socioeconomic challenges persist. The recent inflationary shock has eroded households' purchasing power, resulting in depressed confidence indicators. Although urban labor markets showed improvement, with the addition of approximately 162,000 jobs in 2024, job creation remains a critical challenge. Over the past decade, the working-age population has grown by over 10 percent, while employment has increased by only 1.5 percent. This gap is influenced by the lingering impacts of the post-pandemic shocks, the delayed impacts of recent reforms, and the low level of women's participation in the labor market. The economy is expected to grow faster at a pace of 3.6 percent in 2025, and improved climatic conditions should allow for a partial recovery in agricultural output, with agricultural GDP projected to expand by 4.5 percent. Non-agricultural growth is expected to decelerate slightly to 3.5 percent due to base effects. "Morocco's economic outlook remains robust, characterized by controlled inflation, a strong external position, a steady path towards fiscal consolidation, and a stable debt-to-GDP ratio," said Ahmadou Moustapha Ndiaye, Division Director for the Maghreb and Malta at the World Bank. " Pursuing structural reforms to address recent shocks and employment challenges, particularly those affecting young Moroccans, remains crucial for sustaining economic growth. This will require targeted improvements to the business environment." The report includes a special focus chapter covering Morocco's business climate, with insights from the Business Ready report dataset published in 2024, highlighting opportunities for reform. Morocco outperforms similar-income countries in regulatory frameworks and public services but lags in operational efficiency. Highlighted areas of improvement include addressing high costs and barriers to formal hiring, clarifying procedures and enhancing digital processes and transparency in dispute resolution, finalizing the legal framework, and digitizing services for insolvency cases. The section includes an analysis looking at leading countries to help inform the prioritization of reforms going forward. The report underscores that with strategic reforms and a commitment to modernization, Morocco has the potential to significantly enhance its business environment, fostering economic growth and creating a more inclusive job market. Distributed by APO Group on behalf of The World Bank Group.
Morocco World
20-03-2025
- Business
- Morocco World
Morocco Secures $600 Million in World Bank Funding for Human Capital Initiative
Rabat – The World Bank has approved $600 million to finance the third and final phase of Morocco's human capital development program, designed to build national resilience. The World Bank's announcement detailed that this final stage aims to focus on four key areas. These include strengthening the country's 'resilience to health risks, improving human capital during childhood, reducing poverty among the elderly, and bolstering climate risk management.' The international body's Director for Maghreb and Malta Ahmadou Moustapha Ndiaye explained that this funding builds upon previous operations with the aim of solidifying Morocco's social protection framework. As quoted in the statement, Ndiaye spoke of the significant progress Morocco has already achieved saying: 'Currently, the system is already helping around 75 percent of the population to have access to more affordable health care and over 40 percent of households to access cash transfers.' He further explained that 'these reforms are designed to make the system more comprehensive, equitable, and efficient, particularly benefiting climate-vulnerable populations like farmers.' The initiative comes at a critical time for Morocco, which has undergone numerous crises since 2020, including COVID-19, fluctuating commodity prices, inflation, a devastating earthquake, and prolonged droughts. Read also: Morocco's Ambitious Modernization Agenda Looks Promising Despite Challenges These challenges prompted the North African country to take steps towards bold reforms under its New Development Model framework, seeking to foster more inclusive and robust economic growth. This third funding package is set to consolidate earlier achievements by enhancing governance structures, refining cash transfer mechanisms and pension systems, and strengthening disaster risk management protocols. The program advances Morocco's goal of universal health coverage by expanding health insurance, modernizing healthcare services, and improving the distribution of medical professionals nationwide. Previous funding rounds approved in 2022 and 2023 have already facilitated significant legislative advancements, including generalizing mandatory health insurance and launching a comprehensive social assistance program. Tags: Morocco Human Capitalworld bank
Zawya
20-03-2025
- Business
- Zawya
World Bank Enhances Commitment to Human Capital Development in Morocco
The World Bank's Board of Directors has approved a $600 million financing package for the third phase of the "Strengthening Human Capital for a Resilient Morocco" program. The last in a series of three, this operation aims to enhance Morocco's resilience to health risks, improve human capital during childhood, reduce poverty among the elderly, and bolster climate risk management. Since 2020, Morocco has faced numerous challenges, including the COVID-19 pandemic, commodity price fluctuations, inflation, a devastating earthquake, and prolonged droughts. In response, Morocco has launched ambitious reforms guided by the New Development Model to foster stronger and more equitable growth. This initiative supports Morocco's national reforms to expand mandatory health insurance, extend free health insurance to vulnerable populations, overhaul healthcare services, implement a Direct Social Aid program, expand sustainable pension coverage, and improve protection against climate shocks. The first two financing operations, approved in June 2022 and December 2023, supported substantial legislative changes, including generalizing compulsory health insurance and launching a comprehensive social assistance program. The third operation aims to consolidate these gains by strengthening governance, detailing the implementation of cash transfer and pension schemes, and increasing the effectiveness of disaster risk management. Morocco is advancing towards Universal Health Coverage by implementing reforms to improve health risk protection through increased health insurance coverage, modernizing health service provision, and ensuring equitable distribution of healthcare workers. The government aims to cover the entire population under a unified health insurance scheme managed by the National Social Security Fund (Caisse Nationale de Sécurité Sociale – CNSS). Despite significant progress, with 75 percent of the population now effectively covered, challenges remain, particularly for non-salaried workers. The Direct Social Benefits Program, supported by the new National Social Support Agency (Agence Nationale du Soutien Social - ANSS), will target up to 60 percent of the population not covered by other family allowance schemes. "This initiative, which aligns with the two previous operations, aims to further enhance Morocco's social protection system. Currently, the system is already helping around 75 percent of the population to have access to more affordable health care and over 40 percent of households to access cash transfers," said Ahmadou Moustapha Ndiaye, Division Director for the Maghreb and Malta at the World Bank. "These reforms are designed to make the system more comprehensive, equitable, and efficient, particularly benefiting climate-vulnerable populations like farmers." Distributed by APO Group on behalf of The World Bank Group.
Morocco World
26-02-2025
- Business
- Morocco World
Morocco, World Bank Partner to Boost Data-Driven Policymaking
Rabat – Morocco and the World Bank have signed a cooperation agreement to develop expertise-sharing and support policymaking through data-based methods. The agreement aims to open the way for deeper economic and social collaboration, and was signed on Tuesday in Rabat by High Commissioner for Planning Chakib Benmoussa and the World Bank's Country Director for the Maghreb and Malta Ahmadou Moustapha Ndiaye. Benmoussa talked about Morocco's willingness to transition into more wide-ranging cooperation with other countries through the World Bank. Reliable data, he urged, plays a crucial role in shaping policies, with continuous improvements ensuring that all stakeholders' needs are met. He also called for better analytical tools and forecasting systems, arguing that stronger data capabilities would lead to more informed judgments and more effective public policies. Ndiaye called the agreement a key step toward stronger collaboration . He reaffirmed the World Bank's commitment, adding that global experts in research, statistics, and economic modeling will work alongside Moroccan specialists. A key aspect of the partnership involves the harnessing of data to improve sectoral and regional assessments. By analyzing trends of economic growth and employment, the initiative seeks to identify challenges and opportunities in priority areas that are capable of creating jobs, attracting investment, and driving economic activity. Moreover, Ousmane Dione, the World Bank's vice president for the Middle East and North Africa, stressed the importance of this partnership as data and knowledge play a growing role in development. He talked about the need for evidence-based decisions, where economic projections, growth trends, and unemployment concerns come to the forefront. Morocco has recently placed a strong focus on data to drive sound policy and sustainable development . The North African country's goal is to make more informed choices, enhance economic projections, and create new possibilities in key industries through international alliances and improved analytics. Tags: data analysisHCPMorocco and World BankThe World Bank
