Morocco’s new government eyes 5% growth, a wider tax base, and more social aid in its five-year plan

Morocco is looking to hit 5% average annual growth between 2027 and 2031, as Prime Minister Fatima Ezzahra El Mansouri’s government looks to widen the country’s tax base, introduce income tax reforms, raise direct social assistance, and hike private investments. The five-year economic plan, which El Mansouri — the country’s newly-minted premier — presented to parliament on Monday, will go up for a vote at the House of Councillors today, according to Morocco World News.

BY THE NUMBERS- El Mansouri’s 2031 plan sees inflation holding at 2%, a budget deficit under 3% of GDP, and public debt down to around 62% of GDP. The IMF sees Morocco’s GDP growing at a 4.7% clip this year and inflation averaging at 0.9% by the end of the year, before accelerating to 1.4% in 2027.

The priority that runs through the five-year program and the 2027 state budget: Directing money towards what households pay, rather than rolling out new programs. Under the program, the government plans to double monthly direct social assistance to MAD 1k (USD 102.2) by the end of the five years, enforcing a minimum basic pension of MAD 3k per month (USD 306.5), raising widows’ pension benefits to 100% of the relevant amount from 50% currently, and introducing relief measures for utility bills, Morocco World News reports.

IN CONTEXT- Direct assistance already reaches some 4 mn families and 5 mn children, and mandatory health ins. covers 87% of the population, so the term’s work is on the size of the payment rather than the reach of the system.

The agenda puts youth employment, expanded health coverage, and direct housing support at the top of the line. El Mansouri and her government plan to train 100k young people each year to employer specifications, back 60k businesses with incubation and easier access to financing, and expand affordable housing. Preparations for the 2030 World Cup, which Morocco is co-hosting with Spain and Portugal, come with a commitment to write young Moroccans into project contracts.

Private capital is expected to carry two-thirds of national investment, which makes the state’s role one of procurement and support. The government is directing 30% of public contracts to Moroccan SMEs, targeting 26 mn tourists by 2030, and working through the Investment Charter and continued reform of the Regional Investment Centres. It also wants domestic industry to displace imports of finished products.

Institutional credibility is where the programme makes its sharpest commitments. The government plans to criminalize illicit enrichment and conflicts of interest and to improve the efficiency of public enterprises. “We believe that institutions will not regain public trust without an effective fight against corruption and conflicts of interest,” El Mansouri said.