WILLIAM GUMEDE | Morocco makes democratic, economic strides but still fails on the human rights front

As its North African neighbours such as Tunisia, Algeria and Libya falter, either experiencing economic crisis, political instability or country break-up, Morocco is increasingly transforming itself into a pivot within Africa, switching up its economy, democracy and position in the world.

Morocco is adopting pragmatic policies, leveraging the private sector for growth and more recently fighting corruption more actively, while many African countries, including South Africa, Algeria and Tanzania, are de-industrialising because of ideologically fixed policies, hostility to entrepreneurs and not using foreign policy strategically to boost growth and employment.   

Morocco is leveraging its geo-strategic location, as African but close to Europe and the Middle East, for industrialisation. The country has signed free trade agreements with more than countries.

In May, Morocco launched the first “made in Morocco” car, to be sold for 170,000 Moroccan dirhams (R320,914). Neo Motors is establishing a motor industrial complex in Ain Aouda, outside the capital Rabat, to manufacture cars for the local and international market.

Last year, the Moroccan government unveiled an industrial plan to make the country a hub for electric cars, to take advantage of the global demand for hydrogen and hybrid cars, as the world shifts towards clean energy. The Moroccan industrial plan envisaged doubling the current production of electric cars within three years. The country is rapidly expanding its green hydrogen production capacity.

The country has also prioritised aeronautics, which now accounts for $2bn (R38bn) in export income. Morocco is building an aeronautics parts production hub to manufacture parts for global aeronautics companies such as Boeing, Airbus and Pilatus.

Morocco has also used special economic zones (SEZ) to great effect to meet strategic industrialisation targets, using public-private sector partnerships and linking production in these zones to local supply chains. The country has 7 SEZs and 119 industrial zones, which prioritise new manufacturing for export. In these zones, companies pay no taxes in the first five years, and a reduced rate thereafter, on condition they manufacture new products the country does not produce and bring local companies into their supply chains.

Morocco’s Tangier Med Zone, in 2020 was ranked second in the world after Dubai’s ultra-successful Multi Commodities Centre, by the Financial Times’ FDI Global Free Zones of the Year rankings.

Like all African countries, Morocco’s economy was battered by the Covid-19 pandemic. The global spillovers from Russia’s invasion of Ukraine in 2022 — which increased global energy, food and logistics prices, have further shaken the Moroccan economy. Slowdown in major industrial economies after the Russia-Ukraine war, particularly European markets, have contributed to slow growth. Morocco’s economy is also facing climate risks — as most economies across Africa. The country experienced its biggest drought in decades, crippling agriculture, which contributes 14% of GDP to the economy.

Immediately after the lifting of the Covid-19 lockdowns, Morocco’s economy grew a mouth-watering 7.9% in 2021. The country saw a rebound in tourism after the end of Covid-19 lockdowns and rising exports of vehicles and pharmaceutical products.

However, the impact of Russia’s war on Ukraine, combined with a devastating drought, hammered the economy.

Economic growth in 2022 grew only 1.2% — which is still better than many African countries which have fallen into recession on the back of the Covid-19 long-impact and Russia’s war against Ukraine. Inflation came at 5% in 2022. The decline in economic growth in 2022, reduced tax revenues for the fiscus, compelled the Moroccan government to increase subsidies and social safety nets to the poor and vulnerable.

The impact of the Russia’s war on Ukraine — which disrupted global supply chains, increased fuel, logistics and food prices and shortages, combined with a devastating drought — hammered the economy.

Morocco’s central bank, Bank Al-Maghrib (BAM), has warned that given the continuation of the Russia-Ukraine war and the lingering impact of the drought, and likely more climate-related risks, inflation will remain high. Figures from Morocco’s statistical agency shows that at the end of February 2023, inflation rose 10% because of a 18.9% spike in food prices. Ahmed Lahlimi, head of the higher commission for planning, said high inflation was caused by “shortage in production and supply”. 

Morocco’s statistics agency figures show that unemployment rose to 12.9% in the first three months of 2023. Most of the jobs were shed in the agriculture sector amid the worst drought in years. Unemployment for young people stood at 35.5% and for women 18.1%. Women, who make up 29.7% of jobs, are mostly employed as manual labourers.

However, two-thirds of the country’s jobs are in the informal economy, which accounts for 35% of the country’s economy. Almost all the employment — 97% in the agriculture sector, which makes 14% of Morocco’s GDP — is in the informal economy. Many of those who lost jobs in the agriculture sector, have sought jobs in the services sector, which now soaks up 41% of the country’s employment.

In April 2022, the government signed a social accord with trade unions to increase wages in the public and private sectors to counter the surge in inflation, living costs and decrease in purchase power of ordinary citizens.

However, last Sunday hundreds, under the auspices of the Democratic Labour Confederation, demonstrated in Morocco’s economic capital Casablanca against high food, basic staples and fuel prices and the rising cost of living, saying the government is not doing enough to tackle the problems.

Though the government is now prioritising fighting corruption, progress has been slow. Morocco, like most African countries in the past, has not seen corruption as a major issue. Under Moroccan King Hassan II, who died in 1999, talking about corruption was illegal. King Mohamed VI, who acceded in 1999, in 2011 introduced constitutional reforms, including setting up a National Commission for Integrity and Anti-Corruption, to stave off Arab Spring revolts. However, King Mohamed VI only appointed a head for the institution in 2018, seven years after he established it.

The government rolled out a 10-year national strategy for anti-corruption, which comes to an end in 2025, aimed at halving corruption. The government also launched a national charter for good governance and launched a national plan to promote transparency and integrity in public administration. However, the country’s corruption levels have not declined as much as these strategies hoped for.

In January 2023, the Moroccan government was engulfed in corruption, having been accused of giving cash to MPs of the European Parliament in exchange for favourable view of the country’s occupation of the Western Sahara and suspicions that it had been using Israeli Pegasus software to spy on European leaders.

Morocco is a key partner with the EU in the bloc’s fight against illegal migration, terrorism and extremism from Africa. Morocco deploys more than 80,000 coast guards — with financial support from the EU — to prevent illegal migration from Northern Africa to Europe. Morocco has within the decade blocked more than half-a-million illegal migrants crossing into the EU.

Morocco’s King Mohamed VI survived the 2010/11 Arab Spring uprisings against authoritarian regimes by pro-actively introducing democratic reforms, including a new democratic constitution, a parliamentary constitutional monarch and a multiparty system, which allowed the Islamist Justice and Development Party — reconciling Islam with democracy — to operate. Government exercised executive power, power shifted from the monarchy, and parliament was given more powers.

However, the monarch continues to wield power through formal and informal influence, traditional structures and through his religious status as “commander of the faithful”. Several royalist political parties support the monarchy. The king also has substantial business interests. Human Rights Watch have criticised the Moroccan government for cracking down on critics, journalists and human rights activists and using politically motivated prosecutions.

Morocco’s penal code also criminalises criticisms of the monarchy and Islam and advocacy for the independence of Western Sahara. Discriminatory laws against women, LGBTQ+ people and immigrants continue. Authorities restrict the movement, speech and association of rights activists in the contested Western Saharan region. For example, YouTube commentator Chafik Omerani and protest Noureddine Aouai were jailed for “defaming constitutional institutions” after they criticised King Mohammed VI. Historian Maati Monjib was imprisoned for “receiving funds from a foreign organisation to undermine Morocco’s internal security” because he received grants from the EU for a NGO he set up to defend free speech. Since November 2020, the security forces have blockaded the house in Boujdour of the Western Saharan independence activist Sultana Khaya. The police have raided her house several times. Continuing such attacks on human rights, freedom of speech and sexual orientation may ultimately erode the economic transformation gains.

William Gumede is Associate Professor, School of Governance, University of the Witwatersrand, and author of South Africa in Brics (Tafelberg)