Morocco Country Profile

Snapshot of the Morocco Country Profile


Morocco enjoys macroeconomic stability with low inflation, a large reserve of foreign exchange and a diminishing foreign debt. The country's economic performance for the past few years has been good. Nevertheless, Morocco faces some structural problems. It has a high unemployment rate, a heavy reliance on agriculture and a budgetary deficit. Morocco is highly accommodating to both foreign and domestic investment, and the government is making continuous efforts to improve the investment climate by, for example, streamlining paperwork in connection with investment. Public procurement amounts to 15% of the country's GDP and is allegedly stained by corrupt practices with pernicious consequences for both the cost and quality of public services, despite the fact that government tender processes have been reformed to enhance transparency.

Positive developments in relation to corruption and investment:

  • The legal framework concerning corruption, transparency and integrity seems to be in place, and the regulatory system itself is becoming increasingly transparent.
  • Regional Investment Centres were established in 2002 in cooperation with USAID, in order to provide one-stop shops to facilitate and expedite the investment process by eliminating cumbersome bureaucratic procedures.
  • Morocco's problem with corruption has been well-publicised, and the fight against corruption has been strongly advocated by the country's outspoken media, civil society and the successive governments.

Risks of corruption:

  • The prosecutions have been accused of targeting only petty corruption. Also high profile cases and cases where the misdeeds were shown to result from the regime's style of governance have been promptly halted in order to avoid political embarrassment.
  • Allegations persist that regulatory agencies fail to discipline contravening companies owned by highly influential persons and that regulations shown to jeopardise the entrenched interests of the higher circles of political and economic power are disregarded.
  • Economic reforms have failed to materialise fully into increased investments, as many Moroccan investors lack confidence in the business environment.


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