Rabat - The World Bank and Morocco announced a $350 million financing agreement to support reforms of public enterprises and establishments (EEP).
Morocco’s Minister of Economy Nafia Fettah El Alaoui, and World Bank’s Maghreb and Malta Department director, Jesko Hentschel, signed the agreement in Rabat on Thursday.
During the signing ceremony, the Moroccan minister outlined the agreement’s potential in strengthening cooperation with the World Bank as well as supporting the implementation of the EEP reform process.
The agreement was reached following the approval on June 1 of making the state shareholder policy as one of the pillars of the EEP sector reform.
Fettah El Alaoui presented the shareholding policy guidelines at a council of ministers that King Mohammed VI chaired in June. The council meeting identified key areas needed for reform, including restructuring the public portfolio, improving its management and implementing key sector reforms to enhance public service quality and accelerate the development of the state’s shareholding policy.
The policy covers seven guidelines, including strengthening national sovereignty through supporting different vital sectors such as health, water and food security.
According to the Ministry of Economy, this program seeks to strengthen state shareholder functions and EEP governance framework to r enhance competitive neutrality and improve EEP performance monitoring including climate impacts.
The implementation of the program, which will be financed by the World Bank, will span over a five-year period.
The National Agency for Strategic Management of State Holdings and Monitoring of EEP performance will supervise the implementation of the program in collaboration with the Directorate of Public Enterprises and privatization.
Morocco’s shareholding policy guidelines also aim to promote continental and international integration to meet geostrategic challenges and enhance South-South cooperation, especially with African Union countries.
The program’s primary objective is to stimulate private investment through cooperation with the private sector as well boost economic competitiveness and promote productive employment.
Additionally, the program aims to ensure territorial equity, promote responsible natural resource management, strengthen resilience to climate change, and improve the performance of government and public establishments.