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Moroccan Diaspora Remittances Surge to Record Levels, Boosting Economy
Sunday 1 January 2023, by
Remittances from Moroccans living abroad have reached record levels in recent years, despite the Covid-19 health crisis and the economic situation. By the end of 2022, these transfers could reach 100 billion dirhams, an increase of 13% compared to the same period last year. But where do these funds sent by the Moroccan diaspora go?
The answer to this question has been provided by several experts approached by the daily Les Inspirations Eco. According to economist Omar Bakkou, these funds sent by the Moroccan diaspora are largely intended to support relatives, but also for savings and investment.
Explaining the record level of MRE transfers observed in recent years, the expert indicated that this trend is attributable to the ease of transfers offered by new technologies, coupled with the crisis born of the Coronavirus pandemic which has expanded the spectrum of contributors acting out of solidarity.
Thus, more than 75% of MRE transfers are intended to help their families. And this is the first item of allocation of the funds sent. "It is a tradition that is strengthening in crisis contexts, as we saw during the Covid period, during which transfers accelerated," explained Karim Amor, president of the group of Moroccan entrepreneurs of the World, for his part.
In second place, we find savings and this concerns about 15% of the transfers. Of the remaining 10%, 8% go to real estate acquisitions. Only about 2% of these amounts currently go to direct productive investment, but the trend would be substantially strengthened. More and more MREs are starting to repatriate their assets in order to invest in economic activities in their country of origin, notes Bakkou. We find it in the economy through less visible projects: cafes/restaurants, hotels, small businesses... As many very job-creating niches.