Morocco Plans Merger of National Railway and Highway Companies Amid Economic Challenges

According to statements by the Minister of Economy, Finance and Administration Reform, Mohammed Benchaâboun, the plan could include a merger of the National Railway Office (ONCF) and the motorway company ADM into a single entity.

The health crisis could cause the country’s economy to decline by 5% this year, resulting in a budget deficit of around 7.5% of GDP and a Treasury debt of 75.3% of GDP. Based on these forecasts, the government intends to anticipate a likely recession through the implementation of certain measures. In his speech to the nation, King Mohammed VI announced a 120 billion dirham stimulus plan, or about 11% of GDP.

The stimulus includes 75 billion dirhams in state-guaranteed loans to private and public companies and 45 billion dirhams as a strategic investment fund to finance public-private projects, Mr. Benchaaboun said. According to the minister, Morocco’s plan to universalize social security in five years would guarantee health insurance, pensions and unemployment benefits for all.

According to the planning agency, more than a third of Moroccan workers already work in unregistered companies without social protection, doing manual labor or street vending, which accounts for 14% of GDP.