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Economy

World Bank Unlocks $600 Million to Bolster Moroccan Public Sector Performance

Tuesday 25 June 2024 - 08:50

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The World Bank has approved a substantial $600 million financing package aimed at strengthening public sector performance, enhancing inclusivity, and improving the quality of public services in Morocco. This strategic decision underscores the bank's commitment to supporting the North African nation's development agenda.

According to a statement released on Monday from Washington D.C., the first program, valued at $350 million, is dedicated to supporting the implementation of the reform of public establishments and enterprises (EEP). Its primary objective is to improve the governance, restructuring, competitive neutrality, and performance monitoring of EEPs.

The additional $250 million financing for the "Performance of the Moroccan Public Sector" program (ENNAJAA) will continue to bolster the Moroccan government's efforts to enhance performance and transparency. This program focuses on modernizing public administration through digitization and public financial management reforms.

"The primary goal of these two projects is to improve public sector performance and the quality of public services delivered to Moroccan citizens, aligning with Morocco's new development model," remarked Jesko Hentschel, World Bank Country Director for the Maghreb and Malta, as quoted in the statement.

The World Bank's support will accompany the Moroccan government from the initial phases of the EEP reform, emphasizing results-driven outcomes. It will strengthen the technical and implementation capacities of the two executing agencies—the Ministry of Economy and Finance, particularly its Directorate of Public Enterprises and Privatization (DEPP), and the newly established National Agency for Strategic Management of State Holdings and Monitoring of the Performance of Public Establishments and Enterprises (ANGSPE)—while fostering coordination.

"The EEP reform is a priority for Morocco, as highlighted during the recent Council of Ministers chaired by His Majesty King Mohammed VI on June 1st," added Jesko Hentschel. "From a national prosperity perspective, the objective is to restructure the public portfolio, improve its performance, and implement reforms to offer the population accessible and high-quality services."

Regarding public sector performance, the initial ENNAJAA program has already achieved "significant" results after almost two years of implementation. This includes a notable increase of nearly 7% in additional tax revenues due to improved compliance at the national level, as well as a 22% increase in revenues collected by the ten largest municipalities at the sub-national level.

According to the World Bank, this additional financing for the ENNAJAA program will prioritize enhancing the efficiency of public expenditure and revenue management, including greater budgetary transparency for citizens regarding public spending. Furthermore, it will facilitate the adoption of climate-sensitive budgeting, a first for Morocco, and gender-sensitive budgeting for eight ministerial departments by the project's expected completion in 2028.