Morocco Strengthens Western Economic Ties as King Hosts World Bank and IMF Leaders

On the sidelines of the IMF and World Bank annual meetings held in Marrakech from October 9 to 15, Mohammed VI received an audience on Friday in Rabat with the President of the World Bank, Ajay Banga, and the Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva. The Bretton Woods institutions had not held their annual meetings in Africa since those in Nairobi, Kenya, in 1973, recalls the French newspaper L’Opinion.

The choice of Morocco to host these General Assemblies is not a coincidence. The kingdom is a good student who applies almost to the letter the economic model of the Bretton Woods institutions. This is evidenced by its rapid response to crises, such as during the September 8 earthquake, its control of inflation, the reduction in the unemployment rate, etc. Morocco has also anchored its development dynamics to the new challenges of the global economy, focused on the fight against climate change and renewable energies.

Morocco is also positioning itself as the hub of trade between Europe, the Gulf countries and Africa. Its trade with Europe amounted to 63 billion euros in 2022, or 58.8% of the kingdom’s total goods traffic and three times that with Asia and ten times that with Africa. To attract investors, the kingdom has adopted a new investment charter aimed at granting tax incentives to promote future technology sectors and promote job creation.

Morocco is gradually recovering from the health crisis, with expected growth of 2.4% this year and 3.6% in 2024. But these efforts remain insufficient, after the devastating September 8 earthquake. The IMF has just allocated the kingdom a financing of $1.3 billion, and the European Bank for Reconstruction and Development (EBRD), more than $1 billion, to help with the reconstruction of the affected areas. Clearly, the holding of the IMF and World Bank annual meetings in Marrakech has allowed Morocco to tighten its ties with its multilateral and bilateral partners.