Moroccan Expat Remittances Soar, But Fail to Boost Economic Growth

MRE fund transfers have increased from 60 billion dirhams in 2019 to 115.3 billion in 2023, and are expected to reach 120 billion dirhams in 2024. But Morocco is not benefiting from these funds, the majority of which are directed towards consumption and savings, and a tiny fraction towards productive investment, the report states, specifying that MRE transfers represent more than 7% of the kingdom’s GDP and contribute to stabilizing the dirham, strengthening foreign exchange reserves and reducing the trade deficit.

According to the official data cited in the report, nearly 60% of these transfers are intended for families, 30% for savings and only 10% for productive investment. In a comparative approach, the report notes that contrary to Morocco, the bulk of the diaspora’s transfers in countries like Nigeria and Kenya is intended for investment. The proportion is around 45% in Nigeria and 35% in Kenya, the document indicates, calling for the implementation in Morocco of innovative mechanisms aimed at encouraging productive investment with these MRE transfers.

According to the Observatory, these MRE transfers represent about 20% of the resources collected by banks. Significant liquidity that allows them to finance development projects and grant loans to families and businesses. In short, these transfers contribute to supporting the economic momentum, ensuring the sustainability of the banking sector and strengthening its role in the development of the kingdom, the report concludes.