Morocco's Mid-Term Government Report: Achievements and Challenges at a Glance

Morocco's long-awaited mid-term government report has delivered an in-depth analysis of achievements and ongoing challenges. Prime Minister Aziz Akhannouch's address to the bicameral parliament on Wednesday outlined the administration's priorities, presenting a comprehensive overview of Morocco's socioeconomic landscape.

Social Programs Impact 5.3 Million Families
At the halfway point of its tenure, the Moroccan government's social programs have benefited 5.3 million families, 70% of the nation's 7.3 million households. This significant reach highlights the administration's commitment to improving citizens' lives.

Direct Social Assistance: Reaching 3.5 Million Families
Between December 2, 2023, and March 31, 2024, direct social aid was provided to 3.5 million families, totaling over 12 million people. This group included about 5 million children, with 1.2 million under the age of 5, and 200,000 beneficiaries over 60 years old. Moreover, 400,000 childless families received a fixed monthly allowance of 500 Dirhams.

Universal Healthcare Coverage
The "AMO Tadamon" health insurance scheme now covers 10 million citizens, with the state covering monthly contributions, totaling 9.5 billion Dirhams annually. Since its launch, the program has reimbursed expenses for over 5.1 million cases, amounting to approximately 5 billion Dirhams. This includes 32,701 medication cases, totaling 330 million Dirhams, and 153,091 cases related to long-term and costly medical conditions.

Additionally, as of March 26, 2024, 1.87 million self-employed professionals were registered with the National Social Security Fund (CNSS), covering 4 million insured individuals, including their dependents. The CNSS processed over 2.2 million reimbursement claims from these groups, with payouts totaling 1.9 billion Dirhams.

Pension Increases and Salary Hikes
The government has overseen a 5% increase in private-sector pensions, benefiting 600,000 families. Additionally, 400,000 public sector employees received salary increases.

Housing Assistance
The government has allocated 9.5 billion Dirhams over five years to assist 330,000 families with housing aid as part of its 2024-2026 program. As of April 1, 2024, 60,976 applications were registered, with 90% passing initial screening, and 7,416 requests fulfilled, totaling over 618 million Dirhams.

Enhancing Purchasing Power
In alignment with the commitments outlined in the April 30, 2022, agreement with social and economic partners, the government has taken steps to bolster purchasing power for over 420,000 families. These measures include:

- Increasing the minimum wage in the public sector, the SMIG (minimum wage for industry, commerce, and services), and the SMAG (minimum wage for agriculture) by 10%.
- Raising the average public sector salary from 8,287 Dirhams in 2022 to 8,561 Dirhams in 2023.
- Increasing private sector pensions by 5%.
- Boosting family allowances for the 4th, 5th, and 6th children from 36 to 100 Dirhams.
- Raising salaries for educational personnel, teacher-researchers, and physicians.
- Extending VAT exemptions to include essential products like medicines, school supplies, butter, canned sardines, powdered milk, and household soap.
- Supporting transportation professionals with 8 billion Dirhams.
- Providing approximately 20 billion Dirhams in financial aid for farmers.

Healthcare System Upgrades
The healthcare sector's budget has increased by 35%, reaching 30.7 billion Dirhams in 2024. The government has created 16,500 jobs in the healthcare sector and improved physicians' salaries by applying index 509, resulting in a monthly increase of approximately 3,800 Dirhams after a 15-year wait.

The administration has also initiated plans to increase healthcare students by 20% annually, aiming to surpass the World Health Organization's recommended minimum of 23 medical and paramedical personnel per 100,000 citizens by 2025 (currently at 17 per 100,000).

Further, the government has launched a program to rehabilitate 1,400 health centers, with 481 primary care facilities already renovated. Additionally, construction has started on three new regional hospitals in Errachidia, Guelmim, and Beni Mellal, along with a new University Hospital Center in Rabat.

Education Initiatives
The education sector's budget has risen to over 74 billion Dirhams in 2024, up from 62 billion in 2022. The "pioneer schools" initiative, designed to improve educational quality, currently encompasses 626 primary schools, with plans for nationwide implementation over the next four years.

The "TaRI" support program, implemented in pioneer schools, has yielded noticeable improvements in student performance, with significant increases in mathematics, Arabic, and French language scores.

The government has also improved the status and compensation of educational personnel by providing:

- A net salary increase of at least 1,500 Dirhams.
- A 1,000 Dirham allowance for out-of-scale teachers starting from the 3rd level instead of the 5th.
- Allowing primary and middle school teachers to be promoted to out-of-scale positions.
- Addressing the issue known as "cell 10."
- Regularizing the status of teachers with master's or doctoral degrees or equivalents.
- Creating a new teacher-researcher position.
- Providing retroactive administrative effects for previously excluded personnel.
- Establishing a new administrative corps within the Ministry of National Education.

Macroeconomic Equilibrium
Morocco's economy grew by 3.2% in 2023, recovering from a -7% contraction in 2020. The current account balance stood at +0.1% of GDP in 2023, compared to a deficit of 3.5% in 2022. 

State revenues increased by 68 billion Dirhams in 2023 compared to 2021, while overall expenditures rose by 61 billion Dirhams. The budget deficit fell to 4.4% of GDP, and public investment reached 335 billion Dirhams in 2024, an 11.6% increase. Exports grew to about 429 billion Dirhams in 2023, with the import coverage ratio improving from 78% in 2021 to 84% in 2023.

Employment Opportunities
The Moroccan government claims to have created over 621,000 jobs in non-agricultural sectors, an unprecedented achievement. The "AWRACH" program alone generated over 221,486 employment opportunities, while the "FORSA" initiative supported 21,200 entrepreneurs.

Challenges Ahead
Despite notable progress, the mid-term report acknowledges ongoing challenges, such as reducing regional disparities, improving the business climate, aligning education with labor market demands, promoting a green economy, addressing informal employment, and strengthening the competitiveness of key economic sectors like agriculture and industry.

The Path Forward
Prime Minister Akhannouch emphasized the importance of sustaining the momentum of reforms and called for a concerted effort from all stakeholders. The mid-term report serves as a comprehensive snapshot of the administration's achievements and the work that lies ahead to advance Morocco's socioeconomic development.