Why global lenders are favouring Morocco | Ventures Africa
As a result of economic reforms, “Morocco has grown into a rising African star, charting an economic course for other African nations to follow”:
Over the past half-decade, Morocco has seen a significant improvement in its relationship with the World Bank, International Monetary Fund (IMF) and other multilateral financial institutions. The latest validation of this is a $200 million loan from the World Bank.
This renewed friendship has been driven by a willingness on the part of Morocco to pursue economic and financial reforms, which in turn have propelled it to one of Africa’s most promising economies. Not resting on its oars, the country continues to establish the necessary fundamentals for more economic prosperity, a desire that is clearly expressed in its current move to reduce the strain of subsidies – a gospel of the IMF to African leaders – and public expenditure on growth prospects. It is also promoting access to global markets and investors.
These reforms can be dated back to the global financial crises of 2008 which restricted the growth of other Arab countries. During that period, Morocco improved its economic relations and regional integration effort with African countries, not relying solely on Europe, its biggest trading partner at the time. The economic reforms were set up with the central objective of making Morocco more globally competitive, improving the skillsets of its workforce and strengthening the middle class to serve as the backbone of the entire economy…[Full Story]