More Morocco

East meets West

Modern Morocco

Morocco is mystical and magical, an unforgettable tourist destination, but it is also emerging as a very contemporary country, where texting and Twitter are commonplace - even in the souqs of the ancient medinas, and the mining industry is just being opened to foreign exploration and development.

Located on the north-western shore of North Africa, Morocco has a population of more than 32 million people in an area slightly larger than Alberta, (although about one-third of that land is the disputed territory of West Sahara). Politically, Morocco is regarded as an Arab state and sometimes as an African state.  It is Africa’s most Europeanized country. Most people speak at least one of the two official languages, Berber and Moroccan Arabic; plus French and increasingly English, the common languages of commerce. The capital is Rabat, the largest city is Casablanca.

Unlike neighbouring countries of the region, Morocco has been relatively untouched by the Arab Spring uprisings this year. The country is a constitutional monarchy. The well loved King, Mohammed VI, holds vast executive powers but an elected parliament governs the nation.  The country has always been known for its Islamic liberalism and openness towards the western world. Today the Moroccan welcome rug is being extended to investment by foreign companies.

Economic Reforms

Since becoming King in 1999, Mohammed VI has ushered in an era of new political and economic reforms, including the privatization of certain economic sectors which used to be in the hands of the government. The strategy is working.  The Moroccan economy has steadily grown and become more diverse. Despite various global economic crises, Morocco’s Gross Domestic Product is increasing at nearly 5% average per year. Standard & Poor’s has consistently raised Morocco’s credit ratings citing a “track record in reducing the country’s fiscal and external debt burdens over the past decade [and] Morocco’s high political stability and the government’s momentum for its reform program, including large public works, which raised Morocco’s growth prospects.”  The highly influential Financial Times newspaper ranks Morocco as the first African country of the future for investors in 2011-2012, moving up from third place ahead of South Africa and Egypt.

Inflation remains firmly under control, but unemployment, although improving, remains high.  The official rate fell in the first quarter of 2011 to 9.1%, down from 10% in the same quarter of 2010. Similarly, urban unemployment for people between the ages of 15 and 24 was down, an encouraging trend given that urban youth joblessness has been one of the most stubborn categories of unemployment and a major potential cause of unrest.

The government’s investment in infrastructure and developing industrial activities, including mining, has boosted Morocco’s exports.  Free-trade agreements with many countries have helped stimulate international trade.  To keep investment flowing, the government has devised a number of incentives including tax breaks and subsidies for industry.

Morocco and Canada

In October 2009 the Government of Canada embarked on a comprehensive consultation process to seek input and to help define the scope of a potential free trade initiative with Morocco. In parallel with these consultations, government officials from both countries took part in two rounds of exploratory discussions in Rabat and Ottawa. On January 27, 2011, Prime Minister Stephen Harper and the Prime Minister of Morocco, Abbas El Fassi, announced the two countries will begin negotiations towards a comprehensive free trade agreement.  This will be Canada’s first such agreement with an African country.

Natural Resources and Mining

Natural resource extraction is a pillar of the country’s economy (along with agriculture and tourism).  The mineral sector has been responsible for about 7% of GDP, and in an effort to encourage growth; Morocco has privatized some holdings and is engaged in updating the legal framework.

Currently the industry is dominated by big state mining companies while artisanal miners pick away at surface rocks.  There is very little mid-sector exploration and/or development.

Morocco produces seventy-five percent of the world’s supply of phosphate and is largest exporter in the world. The country is also known as a producer of industrial minerals and base metals such as nickel, copper, zinc, lead, iron, cobalt, fluorine, barite, and anthracite. But professionals estimate that 90% of the country is underexplored by modern mining methods.  

Mining is viewed as driver of economic growth bringing good, well paying jobs; along with infrastructure development, knowledge and technology transfer, plus sustained royalty income. In order to encourage the exploration and development process and exploit their rich resources, the government revised the Mining Act in 1999 and established  L’Office National des Hydrocarbures et des Mines, (ONHYM).

Meet the Minister of Mines

Much of the work to reform the Mining Act was done by Amina Benkhadra, Morocco’s highly qualified Minister of Energy, Mines, Water, and Environment.  She was educated in Morocco, France, and the USA and holds an Advanced Degree in Civil Engineer (Mining) and a PhD in Engineering in Mineral Sciences. She was first appointed in 1998 by the late King Hassan II as Secretary of State for Mining, charged with setting up a new strategy for development of the sector.  In 2008 her role was expanded by the new King to include the crucial energy and water portfolios.  Morocco imports 95% of its energy needs and is developing an aggressive strategy to develop renewable and sustainable energy sources. Minister Benkhadra understands the challenges and opportunities facing her country. In an interview last January she noted, “Morocco has a privileged geographical position that situates it as a regional hub and allows it to play a key role in the area.  We are inter-connected with Spain, Algeria, and we are working on reinforcing the connection with Mauritania.  Due to this geographical position, Morocco is ideal to partner with, especially in the energy sector, where the challenges are big and we have voluntary strategies with good and practical plans.” 

Ms. Benkhadra will be a featured speaker at the MENA Mining Congress in late October in Dubai, UAE. MENA is the Middle East’s premier mining forum - “the regional meeting place for mining companies, financial institutions, government, advisors and investors”.  Minister Benkhadra will speak on why Morocco’s unique geology offers great mining opportunities and provide examples of successful collaboration and partnerships in mining projects in Morocco.