Morocco's Minister of Economy and Finance, Nadia Fettah Alaoui, highlighted, last Thursday in Brussels, the Moroccan experience in mobilizing domestic resources to finance sustainable and inclusive growth, in complementarity with international initiatives.
''Further reforms should be supported in the sense of the optimization of expenditure and tax potential, and the use of innovative financing mechanisms that do not generate debt'', underlined the minister, who was speaking during a round table on "financing sustainable and inclusive growth", within the framework of the 6th European Union-African Union Summit (17-18 February).
In Morocco, the post-Covid-19 recovery strategy seeks to look for funding targeting the private sector, explained Ms. Fettah Alaoui, noting that this strategy was driven by two major projects, namely the overhaul of the national system of guarantee and support for entrepreneurship and the creation of the Mohammed VI Fund for investment in order to promote a new format of financing, which can meet the requirements of the new pillars of growth.
On the other hand, she pointed out, the promotion of private investment in Africa should constitute a battle horse to ensure sustainable and inclusive growth, through the continuous improvement of the business climate, welcoming in this regard the initiative launched at the last Paris Summit aimed at giving new impetus to the Compact with Africa promoting the development of the private sector.
"Economic recovery in Africa remains dependent on our countries' ability to access funding," she stressed, noting that the post-COVID phase represents a real opportunity for African countries to rethink their reform programs in order to build a more resilient economic and societal model.
Nevertheless, said the Minister, the issues and the complexity of the current situation, together with limited leeway, make the choice of priorities increasingly difficult.
Noting that a premature withdrawal of support measures could alter the momentum of the recovery, the minister stressed that given high debt levels and high financing needs, their long-term management will require bolder solutions, including through the strengthening of global financial safety nets.
According to the minister, regional and international cooperation, which has been highlighted since the onset of this crisis, is essential to support the national policies put in place, which cooperation has certainly made it possible to support the response to the crisis in Africa, but remains unfortunately insufficient.
''This is why we continue to advocate for more efforts in channeling Special Drawing Rights (SDRs) to African countries,'' she said, calling for an international debate on the relevance of sovereign country risk assessment criteria, in order to free up additional financing for the continent.
Emphasizing the importance of deepening reflection on the financing of growth in Africa, the Minister underlined that this theme is in line with the constant orientations of HM King Mohammed VI.
''The Sovereign has in fact placed the triple issue of ecological transition, sustainable development and the reduction of the social divide at the heart of the strategy pursued by the Kingdom, making it possible to have a trajectory that is both exemplary and united with our African partners'', underlined Ms. Fettah Alaoui.
On the Covid-19 health crisis, which had harmful implications on the global economic situation, thus jeopardizing the chances of meeting the global SDG agenda, she pointed out that these negative impacts have particularly affected public finances, particularly in Africa where the situation is marked by a drastic reduction in budgetary space, at a time when financing needs are enormous.
“While today the global economy seems to be recovering from the crisis, many African economies are still struggling with the pandemic, further widening the gaps in living standards between countries. This situation requires collective and urgent action by the international community to support the efforts of African countries,'' she said, welcoming all the initiatives launched by the IMF, the World Bank, the G20 and other partners of the Paris Declaration, aimed at alleviating debt and meeting Africa's financing needs.
Morocco, which is delighted to have participated in the Paris Summit, today reiterates its support for all these initiatives, she said.
On this occasion, the Minister launched an appeal "to our EU partners to capitalize on the strengths of the density of historical and economic relations and geographical proximity, to take full advantage of the investment opportunities abounding in our continent, particularly in the wake of the green and digital transition and the African Continental Free Trade Area, and make them levers of co-development and shared prosperity."
The Moroccan delegation taking part in the EU-AU summit is led by the Minister of Foreign Affairs, African Cooperation and Moroccans Abroad, Nasser Bourita.
