Based on its assessment of the state of private investment (90 billion dirhams per year, with approximately 40% driven by foreign direct investment), the ministry has set itself, among other objectives for 2026, to "increase the share to 50% of total investment," but also to "minimize territorial disparities." The goal is to enable all regions of the Kingdom to capture a larger share of private investment, the same source specifies.
Territorial equity in investment has been the subject of numerous reports. Among them is the one by the Court of Auditors published at the end of 2023 regarding the implementation of advanced regionalisation. Regarding shortcomings, the experts cite the "non-implementation of regional strategies in the field of investment development," particularly in the areas of water and energy economics. It simultaneously recalls that "regions are endowed with their own competencies in terms of supporting businesses and attracting investment." Furthermore, it specifies that "the framework law forming the Investment Charter (n°03-22) highlighted their contribution to achieving the objectives related to the development and promotion of investment within the framework of the competencies devolved to them."
Towards a necessary strengthening of financial autonomy
Admittedly, the thematic report of the Court of Auditors praises the diversity of measures undertaken by the regions in this regard, "notably the conclusion of partnerships for the creation of economic activity zones with a view to facilitating investors' access to land," but it deplores certain shortcomings. "These measures are not part of formalised regional strategies for attracting and promoting investment, adapted to the specificities of each region and accompanying sectoral strategies in terms of investment," it indicates. The goal is to ensure convergence and complementarity of the interventions of the various parties at the regional level. In its recommendations, the jurisdiction notably calls on the Ministry of Economy and Finance to provide the Regional Project Execution Agencies (AREP) with an "appropriate legal status allowing them to increase their attractiveness and attract quality human resources while taking into account the specificities of their territories of intervention."Regions, these still untapped territories
The new development model (NMD) recalls, for its part, that the Kingdom has undertaken several reforms to lay the foundations for balanced territorial development, "translating into the field the choice of advanced regionalisation, through the process of decentralisation and deconcentration." According to the text, these reforms have made it possible "to breathe additional momentum into the dynamics of the territories, but they have not succeeded in correcting territorial disparities, insofar as national wealth remains driven by a reduced number of regions."Overall, the NMD calls for accelerating the process of advanced regionalisation "with effective deconcentration and the lifting of the reluctance that delays it." With a view to the completion of this project, the text recommends "a consolidation of the financial resources of local authorities," as well as "the use of public-private partnerships to support the implementation of regional development projects." To ensure the success and sustainability of this advanced regionalisation project, and to strengthen the attractiveness of the regions while stimulating investment flows, deconcentration must be the watchword. Several master plans can be deployed in this sense. The NMD notably recommends the establishment of an ad hoc administration in charge of regional affairs under the walis.
Southern Provinces, a source of inspiration
According to the NMD, the experience of the Southern provinces, the first territories to benefit from a specific development model, "indicates that the mobilisation of the potential of the territories is possible." The efforts deployed by the public authorities have made it possible to place these provinces on "a promising development path." The NMD cites as proof "their dynamic of accelerated convergence towards the targets of the Sustainable Development Goals (SDGs) by 2030, compared to other regions of the Kingdom." An attractiveness confirmed on the ground through the growing investment flows prevailing in this part of the Kingdom. Territorial upgrading: a vision beyond the host cities of the 2030 World Cup. The Royal desire to go beyond the purely event-based framework to include the World Cup in a long-term development project demonstrates a clear ambition: to make this deadline a real engine of transformation for all Moroccans. To give substance to this orientation, emphasis was placed, during the Council of Ministers chaired by His Majesty King Mohammed VI on December 4, 2024, on the launch of an integrated territorial upgrading programme for the 2030 World Cup organised jointly by Morocco, Spain and Portugal.This programme, which goes beyond the framework of just the host cities of the matches, aims to modernise infrastructure, improve public services and strengthen the attractiveness of the regions, whether they are directly or indirectly concerned by the World Cup. Beyond stadiums and sports facilities, it is a question of promoting a structural transformation affecting several areas such as transport and mobility, urban infrastructure and the local economy. In other words, regions that are not directly involved in hosting matches will also benefit from this dynamic. This aims to avoid a concentration of investment in host cities, while ensuring an equitable distribution of resources and opportunities. It thus appears that this programme is in line with the objectives of the new development model, by promoting an integrated approach where sports infrastructure becomes a lever for development for the whole country. To ensure the success of this programme, close coordination between the various ministries, regional councils and local actors will be essential.
Interview with the economist, expert on social issues and president of the Open University of Dakhla Driss Guerraoui: "Shouldn't we think about developing real regional investment charters?"
Le Matin: What are the main challenges related to territorial attractiveness that the regions must still overcome?
Driss Guerraoui: The examination of the issue of territorial attractiveness in connection with the problem of advanced regionalisation is radically changing in nature. There are several reasons for this. Firstly, because competition between potential investors, whether local, national or foreign, is increasingly overlapping with competition between cities and regions. As a result, we are witnessing an unprecedented situation in economics where, on the one hand, it is the regions and cities that are becoming the makers of business and investment and, on the other hand, the determinants of attractiveness are not only changing in nature, but they are shifting from an attractiveness based on price and the quality of goods, services and factors of production to those that highlight several other factors. In addition to stability and security, which fall under national territorial governance, it is about proximity, mobility, the quality of institutions within a territory (region, city or municipality), the organisation of services to businesses and households, notably the quality of transport, the education and health system, territorial administration, digital land use planning and its connectivity, the degree of development of local and regional information, training, research and innovation systems, as well as banking, financial and stock market activities, not to mention the dimensions related to the quality of life in a territory, in particular infrastructure related to cultural and leisure activities.
Therefore, the major preliminary challenge facing regions today in terms of attractiveness is first and foremost that related to their ability to build, through successive touches, this complex and integrated ecosystem of services and infrastructure. Because it is this ecosystem that is in fact the true arbiter of the assessment by potential investors of the business climate in a territory and their decision to invest, and therefore to establish themselves in a region. But it must be noted that, faced with the scale of this challenge, not all regions are endowed with the same human and financial means that allow them to make shortcuts in all the components of this attractiveness ecosystem.
In your opinion, how should regions finance their structuring projects, particularly within the framework of advanced regionalisation?
The issue of financing is another crucial challenge for the regions. As we know, regions have four types of resources: resources transferred by the State, own resources, resources from public-private partnerships and those generated by international financing. According to data from the Ministry of Economy and Finance, provided by the Monthly Bulletin of Local Finance Statistics, the budget of the 12 regions for the year 2023 would represent 10% of the State's general budget, i.e., the equivalent of 12 billion dirhams, of which 15% for the Casablanca-Settat region, 12% for the Rabat-Salé-Kénitra region, 10% for the Marrakech-Safi region, against less than 5% for the Draâ-Tafilalet region and 4% for the Oriental region. When we know that 80% of the resources of the 12 regions are composed of resources transferred by the State, we understand from then on the scale of the structural financial dependence of the regions, why they do not manage to carry out all the projects set by their Regional Development Plan within the allotted time, and correlatively why they struggle to build real poles of competitiveness. Faced with this situation, a fundamental question arises: how can regions finance their development in the future? At this level, enlightened by the experience of the new development model of the Southern provinces, several avenues are available to the regions:
• Mobilise the collective intelligence and genius of their actors and vital forces to produce new wealth. In this perspective, the regions must unleash the energies of all their components to allow all those among their populations who want to take risks, innovate, invest and create economic activities to be able to do so without any obstacles and constraints. In this context, economic governance must effectively consecrate equal opportunities for all, businesses and citizens, before the economic act. This implies the establishment of a business climate that replaces rationality based on rent-seeking situations, concentrations, privileges, favouritism, clientelism and kinship, with that of merit, competence, risk-taking, innovation and fair, loyal and transparent competition. It is this systemic territorial rationality that will create in the regions a territorial economic dynamic that will contribute to broadening the social base of productive activity, will diversify business opportunities and will form real middle classes. It is also this dynamic that will lead the regions to develop their own resources and will lead them to a real and healthy financial autonomy. Ultimately, it is this dynamic that will offer the regions the conditions to consolidate the territorial bases for building real poles of competitiveness, attractiveness and excellence.
• Rethink public-private partnership.
• Radically change the approach to decentralised cooperation. • Implement specific proactive policies to attract foreign direct investment.
• Establish responsible financial governance free from administrative burdens and complexities. This governance must be based on the digitalisation of the administration, transparency, monitoring, evaluation, control and accountability. The objective is to rationalise the management of resources and pool their use.
• Finally, create within each region a permanent body dedicated to territorial economic intelligence.
To what extent could the Investment Charter have a significant impact on the flow of investment in the regions?
The efficiency, effectiveness and reach of the Investment Charter on the attractiveness of the regions depends on the ability of elected officials to appropriate this Charter based on a good knowledge of all the provisions and incentives it proposes and which they can use to attract investment flows to their region. In this perspective, each Regional Council is called upon to use it by highlighting the comparative, competitive and strategic advantages that are specific to the territory of its region, with a view to developing differentiated tax incentive guides dedicated, according to the specificity of the projects, programmes and territorial declinations of the defined sectoral policies, in view of these advantages. This approach should be adopted by all regions and not just those like Casablanca-Settat, Rabat-Salé-Kénitra, Laâyoune-Sakia Al Hamra and Dakhla-Oued Eddahab, which are already in an advanced state in terms of structuring into poles of competitiveness.
However, the optimisation of this Charter with a view to producing a significant impact on the flow of investment in the 12 regions presupposes the preparation of all regions at all levels (Regional Councils, Provincial Councils and Communal Councils) through the strengthening of the capacities of their human resources. It also and above all implies a general mobilisation of all the State's external services and socio-professional representation bodies dedicated to economic action in the region, under the coordination of the walis and governors in order to guarantee unified institutional steering.
This general mobilisation must focus on concrete actions, concerning subjects of interest for investment, and in particular land, the development of industrial and logistics zones, the creation of specialised sectoral clusters, the development of a territorial marketing strategy, and the influence of the region in the world. To this end, shouldn't we think about developing real "Regional Investment Charters"?
Interview with the President of the Casablanca-Settat Regional Council
Le Matin: What are the challenges that Casablanca-Settat must meet in terms of strengthening its regional attractiveness?
Abdellatif Maâzouz: First, I would like to recall that the region has enormous assets at the national level, but also at the level of the African continent, which makes it an attractive region, whether in terms of infrastructure, connectivity, logistics, but also human resources with our various public and private universities and our higher schools. Casablanca is also the leading financial centre on the continent. There are very varied ecosystems that make Casablanca and its region an attractive asset for investors, but also for living. It offers a good quality of life that has improved over the last two years. We can cite in this regard the creation of new green spaces or the reconstitution of old ones, cleanliness, access and exit roads and those inside Casablanca, but also on the side of Nouaceur, Mohammedia, Berrechid and El Jadida. There have been significant investments at this level.
But we still have to face some challenges. These challenges are the counterparts of the assets. We are ranked first region at the national level in terms of industrial production with 50%, and first exporting region with a share of 50% as well. We also concentrate 40% of the national vehicle fleet. This makes Casablanca-Settat the leading region for greenhouse gas emissions. We are working very hard to try to reduce this pollution by acting on a set of assets. First, by decreeing that Casablanca, Greater Casablanca, can no longer receive polluting industries. Those already present are improving their processes in this regard. As you know, to penetrate international markets, particularly European ones, we must have a low carbon impact. An upgrading has therefore been initiated for these industries, especially since this is a region where they are exporters. Reducing pollution also implies acting on improving the environment, and therefore green spaces. The more you green, the more you will reduce the impact of pollution.
The second challenge is that of water stress. We are the region where it is the highest. Our reserves in relation to the population are the lowest in Morocco. This implies the obligation of very efficient management of water resources, whether it is drinking water, water intended for agriculture or water intended for industry. This is another sector in which we are investing a lot. These investments notably relate to the transfer of water from the Saïss perimeter to our region. We are also investing in wastewater reuse stations for watering in particular. We know that it is the equivalent of a large desalination plant that is thrown into nature and into the sea in particular.
Let us recall that the State has made a considerable effort for the desalination of seawater. The large Casablanca station is under construction. There is also a desalination plant in Jorf Lasfar set up a few years ago by OCP, intended for the production and transport of fertilisers. Today, it also supplies the region with drinking water. Cities like El Jadida, Moulay Abdellah and Azemmour are entirely supplied with drinking water produced thanks to desalination, coming from Jorf Lasfar. In the same way, we are placing small or medium-sized monobloc stations in different areas of the region. They allow for the desalination of seawater or brackish water. Like generators for electricity. These stations are transportable and also allow for the treatment of water in territories a little far from the sea.
The third challenge, which is not specific to our region, but to the whole of Morocco, and for which the region is investing a lot, is employment. We have a high unemployment rate which comes not only from our own demographics, but also from the exodus. The Casablanca Settat region is known for its dynamism and attracts opportunity seekers from all over Morocco, and even from the continent. We must therefore be inventive to facilitate investment and use all the facilities granted in this sense by the State, the Investment Charter which we supplement by the development of economic activity zones including industrial, logistics and service zones that allow investors to avoid the often heavy constraint of the cost of land.
We are buying land. We ensure that these activity zones are as close as possible to employment basins so that citizens do not have to travel dozens of kilometres to reach their place of work. At the same time, we are deploying financial means to encourage the creation and development of SMEs and startups in Fintech with CFC (Casablanca Finance City), in the artistic, tourism, craft and social economy fields with the departments, offices and foundations concerned.
I would add a fourth challenge, very important for the region, and for all large metropolises, it is the challenge of mobility. It is very important for us to facilitate the movement of citizens within cities, but also between municipalities. This is the best way to ensure the economic and social inclusion of the different populations of the region. It also encourages citizens not to use only their own vehicles, thus reducing the costs of their travel, just as they contribute to preserving the environment. This is the reason why we have invested heavily in rail transport with the RER, regional trains, the tramway and the BRT. The objective is to exceed 50% of overall mobility at the regional level through public transport.
Regional Development Plan, new development model, Investment Charter, advanced regionalisation... How to best cross these different strategies to win the bet of strengthening the attractiveness of the region?
For the regions, in general, and thanks to the foresight of His Majesty the King, may God assist Him, I would first say that we are lucky to be organised as such. The region is a territory that allows for a concrete basis for the convergence of public policies. At the central level, ministerial departments work mainly on their own sector. In the region, we supplement and concretise in the territories, in different strategies and several major sectoral projects, but whose common objective is the improvement of the conditions and quality of life of citizens and the sustainable and inclusive development of our country.
The fact of having today a sufficiently developed Investment Charter makes it possible to attract investors. The latter, to be attracted by the region, must find opportunities there. There are many in a territory like ours with the ecosystem of aeronautics, health, new technologies, agri-food, textiles and clothing. I told you about economic activity zones. We are precisely setting them up to encourage investors to come and take advantage of these ecosystems and thus supply the national and international market. Through the prism of the new development model, when we developed our vision, the regional development programme, we first had this reflection: we have a territory, how can we define the vocation of each of its major components? We have declined five relating either to heavy industries, or to services, to agriculture or agri-food, to services and high value-added activities, etc.
From there, we started to guide investors and we work for this in collaboration with the Regional Investment Centre, the authorities and the regional directorates of the various departments. We must ensure that we gradually balance our territories. This is what we are doing, for example, in terms of drinking water supply, sanitation, roads, lighting, etc., in coordination with the departments concerned and local authorities. The same applies to major infrastructure in relation to the 2025 Africa Cup of Nations and the 2030 World Cup. This is to tell you that there is a real convergence of public policies at the territorial level.
The Regional Development Programme, developed for the 2022-2027 period, takes all this into consideration. We find in our development model the farsighted orientations of His Majesty. This model itself has strongly inspired the government's programme, which we translate in terms of priorities and specificities of our territory. I would say that the Moroccan legislator, by putting in place Law 111-14 on advanced regionalisation, also thought about planning and implementation tools. These tools are for us the Regional Land Use Planning Scheme and the Regional Development Programme.
What are the different sources of financing for regional development and are there so-called innovative mechanisms?
I would say that this is another challenge for the Regional Councils which have only few own resources, managed directly, unlike the municipalities. Regions are allocated percentages on certain taxes such as corporate tax (IS), income tax (IR) and some taxes such as the tax on port services or that on insurance vignettes, on hunting licences or on quarry production... Now, we are trying to innovate through two levers. The first is to seek additional financing for our projects. When we invest in a project, a ministerial department, a municipality and organisations will also invest with us. If I take the example of wastewater reuse stations, we finance a part and the Ministry of the Interior finances another. The latter has a fund dedicated to this effect. And this without forgetting the municipalities concerned. This allows us to finance these projects serenely.
We are also looking to raise direct financing on the capital market. You will see, moreover, in the coming days, we are issuing a bond loan of one billion dirhams. We are looking to develop own resources through the return on income-generating projects such as industrial zones, wholesale markets, etc., to allow us to repay these loans, but also to launch other projects.
We also use international organisations that trust us and make credit lines available to us. We are in contact with several funders to try to diversify our sources of financing, including climate finance, often less expensive than conventional financing. Finally, I would like to emphasise that the Casablanca-Settat region is omnipresent in most of the major structuring projects of more than a hundred municipalities and that Greater Casablanca occupies a significant share of it, given its driving role for our region and for our entire country.
