Daily Press Review - June 12, 2024
Morocco Reaffirms Support for Ceasefire Initiatives and Humanitarian Aid in Gaza
At the high-level international conference on urgent humanitarian response in Gaza, held near the Dead Sea on Tuesday, Aziz Akhannouch, the Moroccan Prime Minister, reiterated Morocco's strong support, under the leadership of His Majesty King Mohammed VI, for all initiatives and proposals aimed at establishing a sustainable ceasefire in Gaza, delivering humanitarian aid, and protecting civilians.
Representing HM King Mohammed VI at the event, Mr. Akhannouch emphasized the Kingdom's call for a serious and positive approach to these initiatives, aiming to realize the two-state solution. "The situation in Gaza cannot be reduced to just staggering numbers of civilian casualties and massive destruction. It is a genuine unprecedented humanitarian tragedy, with over 2.3 million people living in unbearable conditions," he stated.
Mr. Akhannouch described life in Gaza as a "real hell" due to the persistent blockade and restrictions on access to relief, exacerbating insecurity and lack of access to water, food, and medicine in this densely populated area.
As President of the Al-Quds Committee, HM King Mohammed VI has already ordered the urgent dispatch of humanitarian aid to Palestinians in Gaza and Al-Quds, as well as the provision of additional scholarships to Palestinian students in Moroccan institutions. "Morocco is committed to continuing its support for Palestinians, asserting that humanitarian aid should not be held hostage by political considerations," Mr. Akhannouch emphasized.
Source: Le Matin du Sahara
World Bank Forecasts for Morocco: Growth Slowdown in 2024, Recovery Expected in 2025
In its latest report, the World Bank has revised its economic forecasts for Morocco, announcing a slowed growth rate of 2.4% in 2024, mainly due to a decline in agricultural production. This decline comes despite the resilience of the industrial sector and reconstruction efforts following last year's major earthquake. However, a growth recovery, reaching 3.7%, is anticipated for 2025.
On a global scale, growth is expected to remain at 2.6% in 2024, with a slight increase to 2.7% in 2025-2026, well below the pre-Covid-19 pandemic average of 3.1%. According to the World Bank's forecasts, 60% of economies, representing over 80% of the global population and GDP, will experience slower growth than before the pandemic.
For the Middle East and North Africa (MENA) region, marked by geopolitical tensions and uncertainties, growth is expected to accelerate to 2.8% in 2024 and 4.2% in 2025, compared to just 1.5% last year. This acceleration will mainly be due to the gradual increase in oil production and a resurgence of economic activity starting from the fourth quarter of 2024.
In oil-importing countries, growth is expected to reach 2.9% in 2024 and remain around 4% per year in 2025-2026. However, for Morocco, a growth rate of 2.4% is projected in 2024, following a rate of 2.8% in 2023. The decline in agricultural production will be partially offset by a strong performance in the industrial sector, notably due to post-earthquake reconstruction efforts. In 2025, Moroccan growth is expected to accelerate to 3.7%, surpassing the global average.
Source: Le Matin du Sahara
Bank Al-Maghrib Analyzes the Impact of Exchange Rate Variations on Inflation in Morocco
As Morocco moves towards greater flexibility of the dirham, Bank Al-Maghrib (BAM) has recently released a study analyzing the transmission of exchange rate variations to inflation. This study reveals a moderate but significant pass-through of 33% on consumer prices.
In an open economy like Morocco's, understanding the relationship between the exchange rate and inflation is crucial. Exchange rate fluctuations can directly affect the prices of imported goods and, indirectly, influence domestic production and foreign demand, thereby increasing inflationary pressures.
In an international context marked by rising inflation, BAM conducted this study to assess the degree of transmission (pass-through) of exchange rate variations on inflation in Morocco. This analysis is particularly relevant as the country progresses towards a more flexible exchange rate regime, where the role of the exchange rate becomes increasingly central.
The study, using econometric models in reduced form (ARDL) and structural (VAR), was conducted for the period 2007-2021. The results indicate an incomplete pass-through of the exchange rate to the Consumer Price Index (CPI), standing at 33% in the long term. For the underlying CPI, which excludes volatile products such as energy and fresh food, this rate is even lower, at 14%.
Analyzing the transmission of variations in bilateral exchange rates, it appears that the degree of pass-through from the euro to the dirham (34%) is similar to that of the overall nominal effective exchange rate. In contrast, the impact of the US dollar on domestic prices is less pronounced, with a transmission rate of only 10.5%.
Source: Les Inspirations Eco
Morocco and Planeta Formación Offer Scholarships for Moroccans Residing in Spain
Morocco, in partnership with Planeta Formación y Universidades, announces the second edition of its scholarship program for Moroccans residing in Spain. This initiative, the result of collaboration between the Embassy of Morocco and Planeta Formación y Universidades, offers 241 new scholarships for the academic year 2024-2025.
The call for applications for the 2024-2025 academic year allows students to access various diploma courses, including postgraduate programs, intermediate and higher-level training cycles, as well as continuous training and doctorates.
The collaboration offers three types of scholarships covering 100%, 75%, and 50% of training fees, respectively. This initiative aims to facilitate access to higher education for Moroccans residing in Spain, by reducing financial barriers and supporting their academic and professional development.
Source: Les Inspirations Eco
Historical Record of Capital Raising in 2023: Moroccan Private Equity on the Rise
The year 2023 marks a historic turning point for private equity in Morocco. According to the recent report by the Moroccan Association of Capital Investors (AMIC), capital raising reached a record of 3.01 billion dirhams (MMDH) for the year, bringing the total funds raised over the past five years to 9.87 MMDH. This amount represents more than double the funds raised between 2012 and 2017.
This spectacular growth is detailed in the 2023 activity report of Moroccan private equity actors, prepared by the Grant Thornton firm under the direction of the AMIC Studies & Statistics Commission. The report covers a scope of 24 management companies and 47 funds under management (including 23 active funds and others in the divestment or divested phase), representing almost all management companies with an office in Morocco.
AMIC emphasizes that transregional funds account for 78% of capital raised for Morocco since 2012. These funds mainly adopt a foreign legal form due to constraints related to changes and taxation. Local funds, on the other hand, constitute 22% of fundraising and prefer Moroccan legal vehicles, notably the OPCC form. Moreover, international development organizations and banks/asset management companies contributed to nearly 70% of fundraising between 2018 and 2023, with 44% and 25% of the amounts raised, respectively.
Morocco Shares its Experience on Peaceful Uses of Nuclear Energy in Washington
Morocco's ambassador to the United States, Youssef Amrani, participated on Monday in an important meeting in Washington, chaired by Bonnie Jenkins, U.S. Under Secretary of State for Arms Control and International Security. This meeting focused on the Sustained Dialogue on the Peaceful Uses of Nuclear Energy, Science, and Technology (SDPU).
The meeting, held at the State Department headquarters, was an opportunity for Mr. Amrani to highlight Morocco's efforts under the SDPU initiative. He described this initiative as an "important platform and valuable partner" for scientific and technological cooperation, particularly in key sectors such as water, environment, food, and health.
Mr. Amrani emphasized that the goals of the SDPU initiative align perfectly with Morocco's national priorities, as outlined in the New Development Model. He also reiterated the Kingdom's commitment to the Sustainable Development Goals (SDGs), stating that the peaceful use of nuclear energy can play a crucial role in achieving these goals.
Aïd Al-Adha in Casablanca: 120 Tons of Biodegradable Bags and 6,000 Cleanliness Agents Mobilized
As Aïd Al-Adha approaches, the city of Casablanca is preparing to manage a massive influx of waste, estimated at nearly 30,000 tons during the festive days. For this titanic task, 6,000 cleanliness agents and 1,040 vehicles will be mobilized, announced Ahmed Alilal, Vice President of the Casablanca Commune Council, in charge of the hygiene sector.
To facilitate waste collection, 120 tons of biodegradable plastic bags will be distributed within the 16 districts of the municipality. This initiative aims to effectively manage waste generated during Aïd Al-Adha and to encourage ecological behaviors among citizens.
Simultaneously, an awareness campaign titled "The cleanliness of our Aïd... The happiness of our city" will be launched. It will involve civil society associations, waste management company teams, as well as local authorities and district presidents. The campaign will include an awareness caravan, posters, and communication materials such as reports highlighting the exceptional work of cleanliness agents.
Source: Aujourd'hui le Maroc
Chariot Limited Announces Audited Results for 2023: A Year of Success and Expansion in Morocco
Chariot Limited, the company focused on energy transition in Africa, has unveiled its audited results for the year 2023, marked by significant achievements and consolidated expansion in Morocco.
In 2023, Chariot welcomed Energean as a partner on its offshore licenses, thus strengthening its position in the Moroccan energy market. The company also obtained the Loukos Onshore license, marking a crucial milestone in its expansion. The first onshore drilling campaign on this license resulted in a gas discovery at the OBA-1 well, with all operations conducted safely and with remarkable efficiency.
Adonis Pouroulis, CEO of Chariot, stated: "Our priority this year will be to implement our offshore drilling program on the Anchois field in the Lixus license, with the aim of increasing resources to nearly 30 billion cubic meters. We are also advancing towards a final investment decision for Anchois and implementing our plans for Loukos."
The electricity trading platform, Etana Energy (Pty) Limited, has become a major pillar of Chariot's "Transitional Power" activity. In January 2024, Chariot increased its stake in Etana Energy to 49%, in partnership with H1 Holdings. This platform not only connects efficient energy supply to end consumers but also develops a new offering for renewable energy generation.
Source: Al Bayane
Central African Republic Reiterates Support for Morocco's Territorial Integrity
During an official meeting held Monday in Rabat, Mrs. Sylvie Baïpo-Temon, Minister of Foreign Affairs, Francophonie, and Central Africans Abroad, reaffirmed the Central African Republic's clear and consistent position in favor of Morocco's territorial integrity.
During a press briefing following her discussions with Mr. Nasser Bourita, Minister of Foreign Affairs, African Cooperation, and Moroccans Residing Abroad, Mrs. Baïpo-Temon expressed her country's unwavering support for the autonomy plan presented by the Kingdom of Morocco. According to her, this plan represents the only credible and realistic solution to resolve this regional dispute, in line with the United Nations Charter.
"The Central African Republic always stands by the side of the Kingdom of Morocco and supports the efforts it makes to find a solid and peaceful solution," she said. She emphasized that the Moroccan autonomy plan is a peaceful solution aligned with the principles of the United Nations Charter.
Source: Liberation
Strategic Partnership: Exporting Green Energy from Morocco to Europe
A new strategic agreement has been reached to export green energy produced in Morocco to Europe and international markets. The Australian green energy giant, Fortescue, and the Belgian maritime construction group, Jan De Nul, have signed an agreement to develop submarine cables to connect the two continents and transport green electricity from Morocco to Europe. The announcement was made via a joint statement.
The pact was signed last May in Rabat, between Fortescue's chairman, Andrew Forrest, and Jan De Nul's CEO, Jan Pieter De Nul. This agreement is part of the joint venture created by the phosphate group OCP and Fortescue Energy, a subsidiary of Fortescue, to provide green energy, green hydrogen, and green ammonia to Morocco, Europe, and international markets. This partnership includes the development of manufacturing facilities and an R&D hub to promote the rapidly growing renewable energy industry in Morocco.
"There is a huge opportunity to send renewable electrons from Morocco and North Africa to Europe, to industries and consumers who deserve better choices than they currently have, fossil fuels that emit carbon and contribute to global warming," emphasized Andrew Forrest, CEO of Fortescue.
This partnership takes on particular importance in a context where Europe plans to impose carbon taxes, through its carbon adjustment mechanism at the borders, on industries that do not switch their energy supply to renewable energies.
Source: L'Economiste