Sluggish Reforms Impede Economic Recovery in Morocco

Monday 18 December 2023 - 13:30

The General Confederation of Moroccan Enterprises (CGEM) has voiced its frustration regarding the sluggish pace of reforms in Morocco. In an article published in L’Economiste on Monday, December 18th, CGEM President Chakib Alj emphasized the urgent need to expedite stalled reforms, citing a growing gap between the economic and political spheres.

Alj underscored the failure to fulfill commitments related to the labor code and strike law, pointing out a discrepancy between theoretical progress in streamlining administrative procedures and the actual challenges faced by companies. Additionally, delays in vocational training reform were highlighted as a concerning factor.

Furthermore, Alj raised concerns about the finance law, stating that it did not fully meet the private sector's expectations. Business leaders were taken aback by certain measures within the bill, particularly those related to incomplete VAT reform and clauses that sparked significant apprehension. While amendments by the second chamber addressed some of these worries, the overall message conveyed to companies was perceived as mixed, as reported by the daily.

The CGEM president cautioned against a divergence between political and economic timelines, emphasizing that the global economic crisis and inflation linked to the Russia-Ukraine war have imposed considerable strain on the state budget, hindering efforts for economic recovery.

CGEM believes that decisive action is imperative at this juncture to overcome obstacles and implement crucial reforms. These reforms are seen as vital for stimulating private investment, enhancing productivity, and achieving targets for job creation in Morocco.