Fatima Ezzahra El Mansouri's Vision for a Prosperous Morocco
In a significant development for Morocco, the newly appointed Prime Minister Fatima Ezzahra El Mansouri has introduced an ambitious government program aimed at enhancing social benefits, introducing tax relief, reforming pensions, and making substantial investments in job creation, energy, and infrastructure. On October 19, 2026, she presented this political agenda for the legislative period from 2026 to 2031 before both chambers of parliament in Rabat. The government's objective is to achieve an average annual economic growth of five percent while capping inflation at a maximum of two percent. Central to this plan are the purchasing power of the population, addressing high youth unemployment, and ensuring the economic independence of the nation.
Key Initiatives for Economic and Social Development
El Mansouri announced a series of targeted measures aimed at alleviating the financial burden on households. The direct social assistance is set to double by the end of the legislative period from 500 to 1,000 Dirhams. Future eligibility for this assistance will be more closely tied to actual household income. For qualifying households, an automatic subsidy for electricity bills will be provided, covering costs up to 100 Dirhams without requiring a separate application. Furthermore, a gradual reform of income tax is planned to increase net incomes for employees while promoting regular, registered employment.
The government also intends to intervene in food prices, establishing regional cooperatives and marketing platforms to aggregate agricultural products and bring them closer to consumers. Reforming supply chains for meat and fish is a priority, as is better aligning domestic market supply with agricultural exports. El Mansouri emphasized a shift from expanding social protection to enhancing service quality, from the volume of investments to their yield, and from the diversity of programs to their coordination and actual impact.
A comprehensive pension reform is among the central social policies of the new government. The minimum monthly pension in existing systems will gradually rise to 3,000 Dirhams. Additionally, El Mansouri announced plans to increase survivor pensions for widows to 100 percent of the deceased husband's pension, up from the current 50 percent. The government aims to better coordinate various pension systems and include those who currently lack sufficient retirement security.
Addressing youth employment is another critical area of focus. According to El Mansouri, approximately 2.9 million Moroccans aged 15 to 29 are neither employed nor in educational or vocational training, with a staggering unemployment rate of 29.2 percent among those aged 15 to 24. To tackle this issue, a national program will be launched in 2027 to facilitate the transition into training and employment, targeting the vocational qualification of 100,000 youth and providing practical work experiences for an additional 100,000 each year.
Moreover, the government plans to support 60,000 businesses in their development through improved financing options, state guarantees, and easier access to public contracts. El Mansouri also announced agreements with foreign partner countries to facilitate legal labor migration, enabling young Moroccans to access jobs where labor is sought elsewhere.
In the realm of education, by 2031, the government aims for at least 80 percent of students to master basic educational competencies, with plans to expand existing reform schools, implement regular assessments, and enhance individual support offerings. The healthcare sector will focus on improving medical care outside major cities, emergency medical services, and patient treatment organization, alongside a unified national health information system.
Morocco aims to further develop its energy sector and reduce dependence on energy imports. The government plans to increase the share of renewable energy in the energy mix to over 52 percent by 2030, with key projects focused on green hydrogen production and enhancing gas infrastructure. Additionally, measures to limit energy consumption through efficiency initiatives and address water supply issues are also prioritized.
To ensure long-term water supply for the population, agriculture, and industry, a new national water plan will be implemented, which includes the construction of dams and accelerated establishment of desalination plants. The government also plans to renovate or construct 100,000 homes in rural areas during the legislative period, providing direct financial support and free technical advice to eligible households.
In terms of economic policy, the new government has set concrete goals to achieve by 2031, including an average GDP growth of five percent between 2027 and 2031, and keeping the annual budget deficit around three percent of GDP. The public debt is targeted to reduce to approximately 62 percent of GDP by 2031, with a significant portion of investments expected to come from private enterprises.
In a bid to decentralize the state administration and empower regional institutions, the government will allocate more financial resources to regions, with state transfers reaching at least 12 billion Dirhams by 2027. Additionally, measures will be put in place to combat corruption, enhance public procurement controls, and promote small and medium-sized Moroccan enterprises.
El Mansouri called upon both chambers of parliament to trust her government program, expressing a desire for collaboration with the parliamentary majority, opposition, social partners, and civil society to achieve these ambitious goals.
As reported by fokus-afrika.de.
