IMF: Morocco Stands Out in Africa with Lower Budgetary Priority

Friday 28 - 10:31

Morocco occupies a unique position in the latest analysis by the International Monetary Fund regarding structural reforms that could support the growth of major African economies. Among the eight countries of the African Union examined, the Kingdom is the only one whose budgetary policy reforms are not considered a high priority.

This assessment is included in the report “G20 Report on Strong, Sustainable, Balanced, and Inclusive Growth 2026”, published in August 2026 by IMF staff. The study is based on evaluations conducted by the Fund's teams in various countries during the month of April.

However, the document emphasizes that the levels of priority assigned to different reforms reflect the specific characteristics of each economy and do not constitute a direct ranking between countries.

Morocco is an Exception Among Eight African Economies

The analysis covers Algeria, Angola, Egypt, Ethiopia, Ghana, Kenya, Morocco, and Nigeria, selected among the main economies of the African Union, excluding emerging economies belonging to the G20.

In this group, the IMF estimates that several structural projects remain necessary, particularly in the budgetary, monetary, and financial sectors, as well as in governance.

However, when assessing the urgency of fiscal and budgetary reforms, the Fund clearly distinguishes Morocco. While this category is placed at a high priority level for the other studied economies, it is classified at a medium level for the Kingdom.

This particularity does not mean that issues related to public finances have disappeared from the reform agenda. It rather reflects a different hierarchy of structural priorities.

Public Spending Efficiency Remains a Major Challenge

The IMF continues to identify several areas for improvement related to public resource management. Morocco is notably among the countries where the efficiency of spending and the quality of public finance management remain important levers.

The challenge particularly concerns the ability to maximize the economic and social impact of public investments. According to the Fund's approach, insufficient financial governance can reduce the effectiveness of mobilized resources and limit the expected benefits of investment projects.

Conversely, strengthening management and evaluation mechanisms can help improve resource allocation and reduce losses related to less efficient use of public funds.

For Morocco, the IMF's diagnosis seems therefore more oriented towards seeking better quality of spending rather than the urgency of a vast budgetary overhaul comparable to that identified in several other major African economies.

Governance and Employment Among High Priorities

The hierarchy of reforms appears more demanding in other areas. The IMF thus ranks governance among the high priorities for Morocco.

The report highlights several avenues related to transparency, the quality of public management, and strengthening institutional mechanisms. The fight against corruption is also among the areas mentioned for Morocco, alongside Kenya and Nigeria.

Labor market institutions are also among the projects considered a priority. This orientation underscores the importance given to reforms that could improve the functioning of the labor market and, more broadly, the conditions necessary for more dynamic and sustainable growth.

The contrast is therefore clear: while budgetary policy is placed at an intermediate level in the IMF's evaluation grid, governance and the labor market appear as areas requiring more sustained attention.

Structural Reforms for Growth

Beyond the Moroccan case, the IMF report is part of a broader reflection on the constraints weighing on medium-term growth prospects.

The institution believes that public policies, the quality of institutions, the business environment, and the functioning of the labor market can directly influence the ability of economies to attract investments and improve their productivity.

In this perspective, governance is not only an institutional issue. It can also have direct economic consequences by influencing the level of trust, the cost of economic activities, and the allocation of resources towards productive investments.

The IMF also reminds that its structural evaluations should be distinguished from its immediate macroeconomic recommendations. For several studied African economies, budgetary policies are already oriented towards a short-term tightening trajectory, and Morocco is part of this group.

Moderate Budgetary Priority, but a Still Dense Reform Agenda

The unique position of Morocco in this analysis should not be interpreted as the absence of challenges regarding public finances. It rather highlights a different distribution of urgencies among the major structural projects identified by the IMF.

Improving the efficiency of public spending, strengthening governance, and evolving labor market institutions remain at the core of the axes that could support economic performance in the medium and long term.

In the landscape of the eight main African economies studied, Morocco thus stands out with a budgetary priority deemed less urgent. But the IMF's assessment simultaneously outlines a transformation agenda where the quality of institutions and the effectiveness of public policies remain essential factors for strengthening growth and improving resource allocation.