Morocco's Map

The Kingdom of Morocco is the most westerly of the North African countries known as the Maghreb. Strategically situated with both Atlantic and Mediterranean coastlines, but with a rugged mountainous interior, the country remained independent for centuries while developing a rich culture blended from Arab, Berber (Amazigh), European and African influences.

 

OVERVIEW

Morocco's strategic location has shaped its history. Beginning with the Phoenicians, many foreigners were drawn to this area. Romans, Vandals, Visigoths, and Byzantine Greeks successively ruled the area. Muslim and Arab forces began their conquest of Morocco in the seventh century A.D., bringing their civilization and Islam. Several dynasties, both Arab and Berber (Amazigh), have reigned in Morocco. The current dynasty, the Alaouite, has ruled Morocco since 1649 Morocco's location and resources led to early competition among European powers in Africa, beginning with successful Portuguese efforts to control the Atlantic coast in the 15th century. France showed a strong interest in Morocco as early as 1830. Following recognition by the United Kingdom in 1904 of France's "sphere of influence" in Morocco, the Algeciras Conference (1906) formalized France's "special position" and entrusted policing of Morocco to France and Spain jointly. The Treaty of Fez (1912) made Morocco a protectorate of France. By the same treaty, Spain assumed the role of protecting power over the northern and southern (Saharan) zones. Nationalist political parties, which subsequently arose under the French protectorate, based their arguments for Moroccan independence on such World War II declarations as the Atlantic Charter (a joint U.S.-British statement that set forth, among other things, the right of all people to choose the form of government under which they live). A manifesto of the Istiqlal (Independence) Party in 1944 was one of the earliest public demands for independence. That party subsequently provided most of the leadership for the nationalist movement. France's exile of the highly respected Sultan Mohammed V in 1953 and his replacement by the unpopular Mohammed Ben Aarafa, whose reign was perceived as illegitimate, sparked active opposition to the French protectorate. France allowed Mohammed V to return in 1955, and the negotiations that led to Moroccan independence began the following year. The Kingdom of Morocco recovered its political independence from France on March 2, 1956. Through agreements with Spain in 1956 and 1958, Moroccan control over certain Spanish-ruled areas was restored. The internationalized city of Tangier was reintegrated with the signing of the Tangier Protocol on October 29, 1956. The Spanish enclave of Ifni in the south became part of Morocco in 1969. Morocco took control of its Saharan zones in 1975 after the Spanish army left the area. Soon after, the southern parts of Morocco were attacked by the Polisario Front which is mainly supported and equipped by Algeria. The United Nations which brokered a ceasefire in 1991 is still attempting to find a peaceful solution to the conflict. To this date, Spain occupies the small enclaves of Ceuta and Melilla and other small islands in the north of Morocco. Armed conflict was avoided when Morocco tried to reclaim the tiny island of Leila. Morocco faces the problems typical of developing countries - restraining government spending, reducing constraints on private activity and foreign trade, and achieving sustainable economic growth. Following structural adjustment programs supported by the IMF, World Bank, and the Paris Club, the dirham is now fully convertible for current account transactions, and reforms of the financial sector have been implemented. Droughts depressed activity in the key agricultural sector and contributed to a stagnant economy in 1999 and 2000. During that time, however, Morocco reported large foreign exchange inflows from the sale of a mobile telephone license and partial privatization of the state-owned telecommunications company. Favorable rainfall in 2001 led to a growth of 5%. Formidable long-term challenges include: servicing the external debt; preparing the economy for freer trade with the EU; and improving education and attracting foreign investment to boost living standards and job prospects for Morocco's youth

 

Morocco Facts - 2001 Estimate

Population:      30m Capital:            Rabat Major Language:      Arabic (official); Berber; French and Spanish. Major Religion:      Islam Life Expectancy:      67 years (men), 71 years (women) Monetary Unit:      Dirham = 100 centimes - 10 Dirhams is approximately $1 Main Exports:      Minerals, seafood products, citrus fruit Per Capita GDP:     -purchasing power parity - $3,700 Internet Domain:       .ma International Dialling Code:      +212

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King Mohammed VI

King Mohammed VI King Mohammed was enthroned on 23 July 1999, hours after the death of his father King Hassan II. It is the king who appoints the prime minister, who in turn chooses his government. Mohammed VI was born in Rabat on 21st August 1963. He obtained a BA in Law at Rabat Mohammed V University in 1985 and higher degrees in political science and public law in 1987 and 1988 respectively. The King was granted a Doctorate in Law from the French University of Nice-Sophia Antipolis after he presented his thesis on EEC-Maghreb relations. He maintains a focus on the economic potential present in Morocco’s relations with Europe. Initially, the new king was seen as something as a reformer, keen to liberalize the economy, streamline the monarchy and bureaucracy, root out corruption and establish the rule of law and democracy. He offered plans to improve education and healthcare earning him popular support as the Moroccan State adjusted to the change in leadership. His marked concern for the disadvantaged earned him the sobriquet the ‘King of the Poor.’ In the early stages of his reign, the King prioritized technological advance aiming to supply Morocco’s rural areas simultaneously with potable water, electricity, and Internet and cellular telephone service.

 

The Press

The government owns the official press agency, Maghreb Arab Presse, and the Arabic daily Al-Anbaa. The government also supports two semi-official dailies, the French-language Le Matin and the Arabic-language Assahra. It subsidises the rest of the press through support for newsprint and office space. Several papers can be read online from the Information Ministry's site.

 

Television

The government controls Radio-Television Marocaine (RTM) broadcasts. Another major broadcaster is the French-backed Medi-1, which operates from Tangier and broadcasts throughout Morocco and North Africa. While nominally private and independent, Medi-1 practises self-censorship, as do most Moroccan media outlets. Satellite dishes are available at low cost and permit free access to a wide variety of foreign broadcasts. People in the north can receive Spanish broadcasts. The government does not impede the reception of foreign broadcasts or internet access.

 

Radio

The Moroccan radio market has more variety than most in the Arab world. Apart from state broadcaster RTM, there is the private radio station, Medi 1. French and Spanish stations can be heard. The government has said it would encourage new private radio stations.

 

Internet

The number of internet users was estimated at some 120,000 at the beginning of 2001, with some 75,000 households connected via a dozen or so internet service providers. The Moroccan government does not block access to any internet sites, even those critical of its position regarding the Western Sahara issue.

 

Ethnic make-up

Mostly Berbers and Arabs. There is a small Jewish minority and an estimated 60,000 foreign residents, mainly of French, Spanish and Italian origin. Religions: The majority of Moroccans are Muslim (98 per cent). There are minority Jewish and Roman Catholic communities. Languages spoken: French is the dominant business language in the centre and south, while Spanish is often spoken in the north. Berber is used in the countryside. English is not widely spoken, but is increasingly taught as a second foreign language. Business literature and correspondence should be in French or Arabic.

 

Main cities

Casablanca (estimated population three million in 1998), Rabat (capital, 1.4 million), Marrakesh (1.39 million), Meknès (686,000), Salé (483,000), Tangier (492,000), Oujda (869,000), Fez (906,000), Agadir (672,000).

 

Export/Import

Exports: Principal exports are phosphates (typically 10-15 per cent of total value), phosphoric acid (15-20 per cent), clothing and footwear (10-12 per cent), fish (shell, canned, fresh) (10-12 per cent), citrus fruit (4-6 per cent), fertilizers (3-5 per cent), carpets 2-3 per cent), tomatoes, canned vegetables. Main destinations: France (typically 33 per cent of total), Germany (9 per cent), Spain (8 per cent), Italy (6 per cent), UK (5 per cent), Japan (5 per cent), EU (67 per cent). Imports: Principal imports are machinery and transport equipment (typically 18-22 per cent of total value), crude oil (14 per cent), cereals (typically 5-7 per cent), other foodstuffs (3-5 per cent), chemicals (5-7 per cent), iron and steel (3-4 per cent). Main sources: France (typically 28 per cent of total), Germany (10 per cent), Spain (9 per cent), Italy (8 per cent), US (5 per cent), Saudi Arabia (5 per cent), UAE (1 per cent), EU (64 per cent).

 

Fishing

The fishing sector offers considerable potential, although export markets for the main catch, sardines, are restricted by strong competition from Spain, Portugal and France. After pursuing a policy of leasing fishing rights to foreign countries such as South Korea, Japan, the former Soviet Union, Spain and Portugal, the government is now encouraging national private enterprises in the sector. The government is modernizing the fleet and fishing ports to exploit the rich potential of local fishing grounds. It was announced at the end of November 1999 that the EU had donated US$22.2 million to build four new fishing villages on Morocco's Mediterranean coast. A US$13 million expansion program at Sidi Ifni fishing port, completed in August 2000, is expected to enable catches in excess of 50,000 tonnes per annum. The Moroccan fishing fleet consists of around 21,000 vessels, of which 85 per cent are coastal boats. There is a deep-sea fleet of 517 craft, of which 320 are refrigerated. Morocco's fleet fishes in both Atlantic and Mediterranean waters, and has an agreement to fish in the Gulf of Guinea. As well as its own ports, some of Morocco's catch is landed in Portugal. Fish frozen at sea is landed at Agadir and Tan-Tan.

 

Industry & manufacturing

The sector accounts for around 18 per cent of GDP and employs 20 per cent of the workforce. Most activity is concentrated in the Casablanca area. The main industry is the processing of phosphates into phosphoric acid and fertilizers. Food processing is another major industry, with the agricultural sector accounting for around a third of annual exports. Other significant industries include oil refining (two refineries at Sidi Kacem and Mohammedia - combined capacity 74,000 barrels per day (bpd)), steel, cement, chemicals, pharmaceuticals, toiletries, metallurgy, textiles, leather, paper and timber, metals, rubber, plastics and vehicle assembly. The textile and leather industries employ one quarter of the industrial workforce, and export successfully. Industrial development has switched in recent years away from import substitution and towards encouraging the manufacture of goods for export, support for small- and medium-sized producers, devolution of spending powers to local authorities, and investment in other areas of the country away from Casablanca. Many small-to-medium-sized state-owned companies are due for privatization.

 

Mining

The mining sector contributed 15.6% to GDP in 1998 and employed 4% of the workforce. Morocco is the world's leading exporter of phosphate rock with estimated reserves of 110 billion tons (third largest world producer with an estimated three-quarters of known world reserves). Responsibility for their extraction, marketing and export is vested in the parastatal Office Chérifien des Phosphates (OCP). Although phosphates account for 92% of mineral production, smaller quantities of other minerals are produced, including 500,000 tons of anthracite. Iron ore deposits in northern Rif region, 25km from Beni Eznar port, consist of 18.2 million tons of magnetite ore, which could bring in 700,000-800,000 tons of ore per year. Silver, copper, zinc and lead are mined.

 

Hydrocarbons

Oil: Morocco is heavily reliant on imported oil, which accounts for over 80 per cent of total energy requirements. Consumption of oil in 1999 was 145,000 barrels per day, all imported. Domestic crude oil production is negligible. Exploration projects are under way mainly in the south-west and north-east of the country, and offshore. Big shale oil deposits at Timadhit and Tarfaya (estimated at 200 billion tonnes) are currently uneconomic. The state-owned Samir oil refinery has been partially privatised. In August 2000 a major oil and gas deposit (possible yield up to 2 billion barrels of oil equivalent) was discovered in the Talsint region, close to the Algerian border. It was anticipated that the discovery would significantly narrow the large trade deficit. Gas: Proven recoverable reserves of natural gas are estimated at 4 billion cubic metres. The main producing field is at Essaouira with an annual output of around 60 million cubic metres. Energy: Electricity production depends heavily on imported oil, with hydroelectric potential not yet fully realised. Hydropower accounts for approximately 75 per cent of Morocco's 11.9 billion kWh electricity consumption. Thermal energy accounts for two billion kWh, and one billion kWh is imported from Algeria.

 

Financial markets

Stock exchange: In 1993, the government approved a decree to turn the stock exchange in Casablanca, the Bourse des Valeurs, into a private company with stock held by brokers. This created new bodies for trading in securities, and channeled small savers' funds into share issues and unit trusts. The government's privatization program for state-owned enterprises has increased the volume of trading on the Bourse. The program has dramatically altered foreign perceptions of the Moroccan economy, transforming the Casablanca Stock Exchange (CSA). Once a sleepy backwater of the financial community, it is now regarded as the strongest market in Africa outside Johannesburg Banking: Morocco has a well-developed banking sector, originally modeled on the French system and undergoing a process of liberalization. In 1999, there were five domestic banks in Morocco, representing 4.6 per cent of the Middle East's tier one capital. In 2000, King Mohammed encouraged the Prime Minister to liberalize the sector further, ultimately allowing banks to set their own interest rates free of limits imposed by the central bank. In 1999, Société Générale Marocaine de Banques, an affiliate of France's Société Générale took the lead in lowering interest rates. This sparked competition within the commercial banking sector. The sector is dominated by the state-owned Crédit Populaire du Maroc. The largest private commercial bank is Banque Marocaine du Commerce Extérieur (BMCE). BMCE's profit growth, which has averaged 20 per cent since 1996, is illustrative of the development of Morroco's banking sector in recent years. Since its privatization in 1995, BMCE's share value on the Casablanca Stock Exchange has more than doubled. Central bank : Bank al Maghrib. Main financial Center: Casablanca.

 

Tourism

The tourism sector accounts for 7 per cent of GDP and 6 per cent of employment and is the second largest foreign exchange earner after workers' remittances. Royal Air Maroc, the state-owned national carrier, kept prices high until late-1995 when it was forced to cut them heavily, making Morocco a more competitive destination for European tourists. To further encourage tourism, the prices of accommodation, restaurants and service charges were reduced. Police checks on tourists were relaxed and police stopped salesmen hassling tourists. The private sector pooled resources to set up a National Tourism Federation to plan renovation of hotels, development of infrastructure and seaside resorts. In 1998, 3.24 million tourist visitors to Morocco generated revenues of US$1.7 billion. The war in Kosovo in 1999 benefited Morocco as holiday makers switched destinations from the troubled eastern Mediterranean region. Visitors to Morocco grew by 22 per cent in 1999.