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.
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