Country Private Sector Diagnostic

Creating Markets in Morocco: Country Private Sector Diagnostic

October 14, 2019

A second generation of reforms: boosting private sector growth, job creation and skills upgrading

Only a minority of Moroccans hold a job in the formal private sector. The Morocco Country Private Sector Diagnostic (CPSD) examines the constraints that prevent the private sector from creating the jobs that Moroccans need and from contributing more dynamically to the country’s development goals.

While Morocco has been successful at attracting FDI towards strategic sectors and steering public investment in infrastructure and in support of industrial plans, it has been less effective at integrating domestic firms into international value chains to boost jobs and exports. In order to make space for a vibrant private sector that creates jobs and value, concerted efforts are needed to level the competition playing field and to support the emerging entrepreneurship ecosystem. Government also needs to complement a focus on large flagship investments with measures to foster private sector participation in infrastructure and empower domestic firms to participate in global value chains.

The Morocco CPSD also identifies sectors where private investment can support greater spillovers across the economy and create higher quality jobs in productive sectors. These include the automotive and aeronautics industries and tertiary education and vocational training.

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