Morocco - Morocco Economic Competitiveness Support Programme

Project Summary

Approval Date	08 Jul 2015
Signature Date	28 Jul 2015
Planned Completion Date	31 Dec 2016
Last Disbursement Planned Date	31 Dec 2016
Sovereign / Non-Sovereign	Sovereign
Sector	Finance
DAC Sector Code	24030
Environmental Category	3
Commitment	U.A 85,561,741.35
Status	Completion

Project General Description

Economic Competitiveness Support Programme (PACEM) aims to create accelerated growth through improved competitiveness of the economy. It aims to contribute to efforts by the authorities to reduce microeconomic constraints, including those on efficient public and private investment, tax system distortions and the slow enforcement of court decisions on businessrelated cases. Hence, while addressing the country’s financing needs for 2015, PACEM will allow for continuation of dialogue on competitiveness-supporting reforms with the Moroccan authorities, before engaging in a medium-term programme-based support. The programme seeks to consolidate and deepen reforms implemented under the Economic and Financial Governance Support Programme (PARGEF/Hakama). The expected programme outcomes include: (i) improved competitiveness of the Moroccan economy; (ii) increased number of sole proprietorships (“auto-entrepreneurs”); (iii) improved public investment management; and (iv) greater transparency in the public procurement system. PACEM comprises two complementary components: (I) Improve the private investment climate; and (II) Improve public investment efficiency.

Project Objectives

PACEM aims to contribute to create conditions for accelerated and inclusive economic growth by strengthening the competitiveness of the Moroccan economy. Specifically, its objective is to improve the efficiency of private and public investment, with a view to maximizing the impact on growth, economic transformation and job creation.

Beneficiaries

PACEM will benefit the entire Moroccan population by improving competitiveness that will underpin growth and job creation. In particular, it will benefit: (i) Moroccan SMEs that will witness the lifting of several constraints hampering the development of their activities, especially provision of public procurement collaterals and additional incentives to employ workers; (ii) major project investors, who will have a more transparent and encouraging framework for investment and negotiation, as well as a clear system for PPPs; (iii) informal sector workers and the unemployed, mostly women, who will make the most of the tax amnesty and the new incentives system set up as part of the sole proprietor arrangement.

Participating Organization

Implementing

GOUVERNEMENT DU MAROC MINISTERE DES FINANCES DIRECTION DU

Funding

African Development Bank

Information

IATI identifier	46002-P-MA-H00-004
Last Update	22 Mar 2023

Export

Geographic Location

Country	Morocco

Coordinates	Location Name
34.0133 -6.83255	Rabat

Project Classification

Finance Type	Aid Loan Excluding Debt Reorganisation
Flow Type	ODA
Aid Type	General Budget Support

Commitments

U.A 85,561,741

African Development Bank

U.A 85,561,741.35

Disbursements

Repayments (Interest & Loan)

Document Type	Language	Document
Appraisal report	fr	Maroc-RE- Programme dappui à la compétitivité de léconomie
Appraisal report	en	Morocco-AR-Morocco Economic Competitiveness

Indicator	Indicator Measure	Target Year	Target Value
Global Competitiveness Index	Scale (1-7)	2015	4.21
Members monitored as sole proprietors	Number	2015	5000.0
Members monitored as sole proprietors - of which women	Number	2015	1500.0
PEFA Indicator PI-11 on public investment management	Score	2015	B
PEFA PI-19 on competitive bidding, optimal use of resources and monitoring of public procurement (CSI)	Score	2015	A
Adoption of the Investment Bill	None	2015	Draft bill adopted by the Council of Ministers before end-2016
Validation of the National Anti-corruption Strategy	None	2015	Strategy validated by the National Anti-Corruption Commission headed by the Head of Government before end-2016
Adoption of the National Business Climate Commission (CNEA) Action Plan	None	2015	Action Plan adopted by the steering committee before end-2015
Submission to the SGG of the draft bill on arbitration and conventional mediation	None	2015	The Bill is submitted to the SGG before end-2015
Decree on the repayment of the accumulated VAT credit (2004-2013 period) to companies	None	2015	The decree on refund of the accumulated VAT credit is adopted before end-2015
Adoption of two decrees concerning the status of sole proprietors	None	2015	Decrees adopted by the Council of Ministers before end-2015
Reduced employment cost through the introduction of income tax exemption for up to five employees of business start-ups and up to a ceiling of MAD 10 000	None	2015	Finance Bill incorporating this reduction before end-2015
Adoption of the Decree on public-private partnership for implementation of the PPP Law (86.12)	None	2015	Decree adopted by the Council of Ministers before end-2015
Number of public establishments and enterprises implementing the Moroccan Code of Good Governance Practices	Number	2015	15.0
Extension of the use of programme budgeting	Number	2015	6.0
Adoption by the Council of Ministers of the Decree on the preparation and execution of finance acts making it mandatory on pioneering LOLF departments to submit a performance draft and the related monitoringevaluation system, including impact on gender	None	2015	Decree adopted by the Council of Ministers before end-2016
Adoption of the decree establishing the CNCP	None	2015	Decree adopted by the Government Council before end-2015
Decree on e-procurement	None	2015	The Order on eprocurement is issued before the end of 2015