Morocco is poised to create an impressive 1.7 million new jobs by the year 2035, along with a significant boost to its real GDP, which could rise nearly 20% beyond current projections. This optimistic forecast stems from a recent report published by the World Bank Group, which emphasizes the necessity for structural reforms to invigorate the economy. The report, titled the Morocco Growth and Jobs Report, was developed in collaboration with the Moroccan government and highlights a comprehensive strategy aimed at stimulating economic growth, attracting private investments, and expanding employment opportunities, particularly for women and the youth demographic.
The World Bank Group notes that while Morocco has made substantial strides in economic development throughout recent decades, the benefits of this growth have not been sufficient to generate adequate job opportunities. Between 2000 and 2024, the nation’s working-age population has grown at an alarming rate, nearly 2.5 times faster than the increase in employment levels. This disparity indicates a pressing need for reform to align employment growth with the expanding labor force.
One of the critical findings of the report is that around 40% of Moroccan industries are still functioning under limited competitive pressures, which hampers their ability to scale up operations and enhance productivity. Moreover, despite a relatively high level of educational attainment among women, their participation in the labor force remains alarmingly low compared to global standards. To address these challenges, the report outlines four primary reform areas: enhancing market competition, fostering the emergence of more dynamic firms, increasing the efficiency of public investments, and creating more inclusive labor markets.
The World Bank posits that by implementing these essential reforms, Morocco could not only create 1.7 million additional jobs by 2035 but potentially increase this figure to 2.5 million by 2050. This would result in a substantial long-term economic output for the country. Ahmadou Moustapha Ndiaye, the International Bank for Reconstruction and Development (IBRD) Division Director for the Maghreb and Malta, stated, “Morocco has built a strong foundation, and with the policy recommendations of the Growth and Jobs Report, the Kingdom can go even further, generate millions of jobs, deepen private investment, and create real opportunities for women and youth. The World Bank Group is fully committed to this journey alongside Morocco.”
In addition, another report from the World Bank Group highlights that private investments play a crucial role in creating jobs and enhancing the country’s GDP through targeted sectors. Key areas for investment include decentralized solar power generation, low-carbon textiles, argan-based cosmetics, and marine aquaculture. These sectors are in line with Morocco’s priorities for green growth, industrial development, and regional progress. However, the report identifies that the primary challenge hindering these investments is not a lack of opportunities but rather policy and regulatory constraints, including cumbersome administrative procedures and regulatory frameworks, as well as skills gaps that deter potential investors.
To overcome these barriers, the World Bank recommends streamlining and digitizing administrative processes, clarifying regulations, bolstering traceability systems, and enhancing access to infrastructure and renewable energy resources. If these measures are successfully executed, the report estimates that Morocco could attract approximately $7.4 billion in private investments and generate over 166,000 jobs across the targeted sectors within the next five to ten years. Cheick-Oumar Sylla, the International Finance Corporation (IFC) Division Director for North Africa and the Horn of Africa, emphasized, “Morocco has the sectoral assets and the policy ambition to attract significantly more private investment. The country is ready for the next level of private sector engagement, and this diagnostic highlights concrete opportunities that could mobilize private investment equivalent to around 4% of GDP.”
As reported by moroccoworldnews.com.
