Morocco country profile

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The Kingdom of Morocco is located in the northwest of the African continent. Its northern coastline borders the Mediterranean Sea, while its western seaboard overlooks the Atlantic Ocean.

It is bordered by Algeria to the east and the non-self-governing territory of the Western Sahara, over which it claims sovereignty, to the south. The administrative capital is Rabat, while the commercial capital - and largest town in the Maghreb region – is Casablanca.

Morocco gained independence in 1956, having been a Franco-Spanish protectorate since 1912. The Alawi dynasty that had ruled the kingdom since the mid-17th century was restored and King Mohammed V assumed the throne. King Hassan II succeeded King Mohammed V in 1961, and the first general elections were held two years later.

King Hassan II was succeeded by his son King Mohammed VI in July 1999. King Mohammed VI's accession was seen as a turning point for the kingdom. A gradual liberalisation and reform process began, and exiled dissidents were able to return to the country. Efforts are being made to address the kingdom's greatest issue, that of poverty and unemployment.

A Justice & Reconciliation Commission was set up in late 2003 to look into human rights abuses and the use of torture under King Hassan II, announcing its findings in 2005. Political reform, however, has moved far slower than economic reform.

Continued economic hardship, and in particular high youth unemployment, has been identified as the root causes of the intermittent surfacing of Islamist terrorism. In the latest incidents, on 10 and 15 April 2007, five suicide bombers killed themselves in the commercial capital of Casablanca, injuring four people. Government attempts to address poverty and unemployment, which are particularly acute in rural areas, have been frustrated by its rising fiscal deficit.

Morocco is locked in a dispute over the status of the Western Sahara region in the south, which is a UN-designated non-self-governing territory. Morocco gained control of the region in 1975 when Madrid withdrew from what had been the Spanish Sahara.

But in 1973 the Polisario movement was formed, calling for an independent state. Algerian-backed Polisario forces and government military have been involved in clashes ever since, despite a UN-backed ceasefire in 1991 and the UN's subsequent efforts to reach a solution through its Mission for the Referendum in Western Sahara (Minurso).

Efforts to hold a referendum have been frustrated by Rabat's reluctance to engage in the process and the Polisario's objection to the movement of people to the region from the rump of Morocco in what they see as a blatant move by Rabat to swing any potential vote.

The first face-to-face talks between the two sides took place in June 2007, but after a second round of talks in August negotiations stalled. Rabat submitted plans for the region to have limited autonomy, while the Polisario continued to propose independence for what it calls the Saharawi Arab Democratic Republic (Sadr). Sadr launched its second oil and gas licensing round in late 2007, but any acreage awarded cannot be actively explored until the resolution of the territory's status.

Table: Morocco at a glance

Government

Morocco is a constitutional monarchy with a bicameral legislature. Members are elected to the 325-seat Assembly of Representatives (lower house) for five-year terms, with 295 of them elected to multi-seat constituencies and 30 from women-only national lists. Representatives to the 270-seat Assembly of Councillors (upper house) are elected for nine-year terms by a mixture of local councils, professional chambers and wage-earners. The number of constituencies was increased from 91 to 95 prior to the 2007 elections, the second in the reign of Mohammed VI.

Since independence, Morocco has been characterised by a multi-party system that makes it difficult for a single party to govern alone. The country has 26 political parties, and coalition governments have been the norm. Genuine executive power lies largely with the monarch, who is head of state, military chief and religious leader.

The 2007 elections were the first to be monitored by foreign observers, who concluded that they were largely free and fair, but voter turnout was the lowest in the kingdom's history. This was largely attributed to the population's frustration with the crown-dominated political system.

The Socialist Union of People's Forces – the largest party in the outgoing government – lost almost 25 per cent of its seats. It was replaced as the largest party by its coalition partner, Istiqlal. Istiqlal leader Abbas el-Fassi was made Prime Minister on 19 September. The pro-government, liberal People's Movement and Constitutional Union parties were the main gainers in the elections. The representation of the opposition Islamist Justice & Development Party, which had been tipped as a possible winner, increased only modestly.

Last elections to the Assembly of Representatives: 7 September 2007

Leading parties at last elections (turnout 37 per cent):

• Independence Party (Istiqlal) 494,256 votes, 10.7%, 52 seats (change +4)

• Justice & Development Party (PJD) 503,396 votes, 10.9%, 46 seats (+4)

• People's Movement (MP) 426,849 votes,  9.3%,  41  seats (+14)

• National Rally of Independents (RNI) 447,244 votes,   9.7%,  39 seats (–4)

• Socialist Union of People's Forces (USFP) 408,945 votes, 8.9%, 38 seats (–12)

• Constitutional Union (UC) 335,116 votes, 7.3%, 27 seats  (+11)

• Party of Progress & Socialism (PPS) 248,103 votes, 5.4%, 17 seats   (+6)

• National Democratic Party / Al-Ahd (PND/Al-Ahd) 253,816 votes, 5.5%, 14 seats  (–3)

Government officials

• King: King Mohammed VI

• Prime Minister: Abbas El-Fassi

• Minister of Agriculture, Rural Development & Sea Fisheries: Aziz Akhenouch

• Minister of Communications & Government Spokesperson: Khalid Naciri

• Minister of Culture: Touriya Jabrane

• Minister of Economy & Finance: Salaheddine Mezouar

• Minister of Employment & Vocational Training: Jamal Aghmani

• Minister of Energy, Mines, Water & Environment: Amina Benkhadra

• Minister of Equipment & Transport: Karim Ghellab

• Minister of Foreign Affairs & Cooperation: Taieb Fassi-Fihri

• Minister of Foreign Trade: Abdelatif Maazoz

• Minister of Habous & Islamic Affairs: Ahmed Toufiz

• Minister of Health: Yasmina Baddou

• Minister of Industry, Commerce & New Technologies: Ahmed Chami

• Minister of Interior: Chakib Benmoussa

• Minister of Justice: Abdelwahed Radi

• Minister of National Education, Higher Education, Staff Training & Scientific Research: Ahmed Akhchichine

• Minister of Social Development, Family, & Solidarity: Nouzha Skalli

• Minister of State without portfolio: Mohamed El-Yazghi

• Minister of Tourism, Handicrafts & Social Economy: Mohamed Boussaid

• Minister of Youth & Sport: Nawal El-Moutawakil

• Minister in Charge of Relations with Parliament: Mohamed Saad El-Alami

• Secretary General of the Government: Abdessadek Rabii

• Minister-Delegate to the Minister of Foreign Affairs & Cooperation in Charge of

• Moroccan Expatriate Affairs: Mohamed Ameur

• Minister-Delegate to the Prime Minister in Charge of the Admin. of National Defence: Abderrahmane Sbai

• Minister-Delegate to the Prime Minister in Charge of General & Economic Affairs: Nizar Baraka

• Minister-Delegate to the Prime Minister in Charge of Urbanization & Housing: Ahmed
  Toufiq Hejira

• Secretary of State to the Minister of National Education, Higher Education, Staff Training & Scientific Research: Latifa Labibda

• Secretary of State to the Minister of Energy, Mines, Water, & Environment: Abdelkebir Zahoud

• Secretary of State to the Minister of Foreign Affairs & Cooperation: Ahmed Lakhrif

• Secretary of State to the Minister of Foreign Affairs & Cooperation: Latifa Akherbach

• Secretary of State to the Minister-Delegate to the Prime Minister in Charge of Urbanisation & Housing: Abdeslam Al-Mesbahi

• Secretary of State to the Minister of Interior: Saad Hassar

• Secretary of State to the Minister of Tourism, Handicrafts & Social Economy: Anis Birou

• Governor, Central Bank: Abdelatif Jouahri

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Economy

Morocco's economy is underpinned by agriculture, tourism and remittances from abroad. The kingdom enjoyed real GDP growth in 2006 as a result of a strong performance in the agriculture, construction and tourism sectors. Strong growth is expected in the medium term, with agricultural growth set to exceed 5 per cent and real GDP expected to increase by about 5 per cent a year for the next five years. Inflation over the same period is expected not to exceed 2.5 per cent, and the current account is expected to enjoy a small surplus in the short and medium term. The kingdom is expected to run a fiscal deficit of 2-3 per cent of GDP for the next five years.

A reform programme is under way in the financial sector, where the proportion of non-performing loans has fallen in recent years and the central bank's supervisory role has been extended to include financial institutions other than banks. Structural problems remain, however, with GDP per capital of just $1,800 in 2006 and double-digit unemployment.

Table: Economic indicators

($ million, unless stated) 

Sectors

Oil & gas

Morocco has proven reserves of just 2 million barrels of oil and 43 billion cubic feet of gas, making it by far the largest hydrocarbons importer in the North Africa region. Although a number of international companies have exploration contracts in the kingdom, no significant discoveries have been made. The kingdom relies on imported oil for 62 per cent of its energy consumption, with coal imports making up another 30 per cent. Gas comes largely from its neighbour Algeria.

The situation is exacerbated by rising oil prices. Oil subsidies contributed to a state energy bill of $4.5 billion in 2005, and the government plans to increase the share of gas in the energy mix from 3 per cent in 2007 to 20 per cent by 2012. Plans are under development for a 5 billion-cubic-metre-a-year liquefied natural gas receiving terminal at either Tangier in the north or Jorf Lasfar in the south. Substantial barriers remain to the project, not least securing a source of gas.

Power & water

Rapid population growth is pushing the issue of Rabat's energy deficit up the agenda. Energy consumption almost tripled from 4.6 million tonnes of oil equivalent (TOE) in 1980 to 12.2 million TOE in 2005, while electricity consumption has increased from 4,460 gigawatt hours (GWh) to 18,000 GWh over the same period. Annual electricity demand is growing by an estimated 8-10 per cent a year.

Securing gas has been a major barrier to the country's development of its power sector, and plans for an 800-MW combined cycle power station at Al-Wahda have been repeatedly delayed. In the meantime, Rabat has been seeking alternatives. State energy company Office Nationale de l'Electricite is evaluating locations for a 1,320-MW coal-fired facility, originally planned for Cap Ghir. The kingdom is one of the leading developers of alternative energy in the Middle East. A 472-MW solar hybrid plant at Ain Beni Mathar is being developed, while wind farms are being built at Tangier and Essaouira, with two more planned for Kenitra and Tarfaya.

Industry

The kingdom is the world's largest exporter of phosphates, a sector being developed by state company Office Cherifien des Phosphates (OCP). A number of international companies, including Brazil's Bunge, have signed partnerships with OCP. A study is also under way into the kingdom's uranium potential, and in late 2007, France's Areva signed a headline agreement with OCP for the extraction of uranium from phosphates.

A new port at Tangier, being developed by the Tangier-Mediterranean Special Agency, is set to be one of the largest deep-water ports in the Mediterranean. The first contained terminal opened in July and will be fully operational by the end of 2008. A second terminal, due to be operational in 2012, will increase the port's container capacity from 3.5 million twenty-foot equivalent units (TEU) to 8.5 million TEU. The scheme is being accompanied a series of infrastructure upgrades in the area and is designed to promote regional development in the north of the country. The development of an integrated transport network, including new road and rail networks, is set to cost $5-6 billion.

The kingdom is also becoming a centre for offshoring, with its flagship offshoring zone, CasaNearshore, due to open in 2007 and others to follow in Rabat, Fez and Marrakech. A consortium of international car manufactures Renault and Nissan signed an agreement in September 2007 to invest $1.5 billion to establish a car assembly unit in the kingdom.

Tourism & construction

Under the government's tourism programme, Plan Azur, Rabat aims to increase the number of tourist visitors to the kingdom to 10 million in 2010 from 6.6 million in 2006, in the process raising the sector's contribution to GDP to 20 per cent. Six major resorts are being developed at Saida, Mogador, Mazagan, Lixus, Taghazout and Plage Blanche, for a total cost of more than $4 billion. Tourism complexes are also being developed at Mansour Lake City in Ouarzazate and Oued Chbika in the south, and major hotel-building schemes are under way in Casablanca and Marrakech.

A mixed-use scheme, set to cost about $1.3 billion, is under development in the Bouregreg Valley near Rabat. The 6,000-hectare zone will include industrial, agricultural and tourism zones and involve the construction of associated transport infrastructure. A government scheme to promote the development of low-cost housing is also in place to help meet demand for affordable homes that is rising at 125,000 units a year.