Morocco’s Covid-19 Fund Nears Depletion, Raising Economic Concerns

Due to the health crisis, for nearly a year and a half, Morocco has set up a kitty to support populations and businesses. This fund, which has been heavily solicited, is in the process of being exhausted, warns Eco actu. The overall cost of the crisis is estimated at nearly 40 billion DH due to a large drop in revenue associated with the unavoidable nature of expenditure, according to the recent analysis of CDG capital. Moreover, despite the drop in tax revenue estimated at 34.5 billion DH in 2020 and 33.6 billion DH in 2021 against a picture outside the health crisis, i.e. a loss of 68.1 billion DH, the State must continue its support to several sectors.

Thus, during the 12th meeting held on April 2 and given the current situation, the Economic Monitoring Committee decided to extend until June 30, 2021, the measures for the 8 program contracts (tourism, catering, caterers and events, amusement and theme parks, the press, cultural and creative industries, private sports halls and nurseries), i.e. nearly 102,000 employees to be taken into account and financed by the Special Fund for the Management of the Coronavirus Pandemic "Covid-19", with nearly 612 MDH over 3 months, in addition to the cost of allowances for employees in certain sectors, the subject of agreements, not yet paid.

However, given that the Special Fund for the Management of the Pandemic has only 3.5 billion DH which must also be used to finance the vaccination campaign which is still in its infancy, many are concerned about the government’s strategy to get out of this situation.

Will the State again call for donations to replenish the Fund, or will it resort to other own funds? Will we still have to count on private companies, public institutions, civil servants, Moroccans living abroad and others who have already been tested? What will the government concretely do for the survival of the national economy? All eyes are on the Executive.