Fishing boats in the harbour of Essaouira

Morocco

Geographically, Morocco and Europe are separated only by the Straits of Gibraltar: hence Morocco is an important link between Europe and Africa, and plays an important role for peace and stability in North Africa. Over the last two decades, Morocco has made significant progress in a political, economic and social sense thanks to comprehensive reforms.

After first enjoying a period of continuous positive economic development during the last two decades, the country’s economy has recently been experiencing huge fluctuations: the COVID-19 pandemic, a severe drought and the repercussions of the war in Ukraine have had major impacts. In addition, the economic growth that had been achieved did not benefit all population groups and regions equally. A high level of youth unemployment, a lack of opportunities for women to participate, corruption and a big development gap between urban and rural areas all pose risks for social peace.

Morocco is a monarchy, with the reins of power mainly concentrated in the hands of Mohammed VI, who has been King since 1999. The current government, which was democratically elected in 2021, is pursuing a course of reform. It has formulated concrete development goals for the next few years in order to address the challenges that Morocco is facing.

German development cooperation with Morocco

Development Minister Svenja Schulze and the Moroccan Foreign Minister Nasser Bourita at their meeting in Rabat

Morocco is a key partner for Germany in the region of North Africa.

In a meeting between the then Federal Minister Svenja Schulze and Morocco’s Foreign Minister Nasser Bourita in March 2022, it was agreed that, with a view to a comprehensive partnership and in the spirit of mutual respect, development cooperation would be deepened.

In a joint foreign policy declaration, the two countries furthermore agreed in August 2022 that they would further deepen their longstanding bilateral relations in order to establish an enhanced partnership focused on the future. Political dialogue is to be strengthened, trade promoted, and cooperation on climate issues and protecting biodiversity, and on increasing the use of renewable energies and energy efficiency is to be expanded.

Current priority areas of cooperation

Group picture from the government negotiations with Morocco

At the government negotiations in October 2022, the Federal Ministry for Economic Cooperation and Development (BMZ) made a new commitment of almost 243 million euros to Morocco. Of this sum, 19 million euros is for Technical Cooperation and around 224 million euros is for Financial Cooperation, which is mostly used to provide loans at near-market conditions.

In line with Morocco’s own development strategy, the focus of development cooperation is on the two following core areas:

Sustainable economic development, training and employment
Climate and energy, just transition

Furthermore, the BMZ is supporting projects concerned with migration, good governance and regionalisation. The aim for all measures is that they serve the goal of gender equality and contribute to the digitisation of processes.

Employee in a textile factory in Morocco, which offers a dual training system based on the German model

There is currently a lack of opportunities, especially in rural areas, for young people and women in particular to find employment or a way to earn an income. Germany is supporting Morocco in its efforts to make better use of the employment potential offered by micro, small and medium-sized enterprises (MSMEs), and make vocational training more practice-oriented.

An employee of the solar power plant in Ouarzazate looks over a solar field.

Morocco is still heavily dependent on imported fossil fuels. At the same time, the country is ideally placed to use wind and solar power in particular. The government has formulated ambitious goals for climate action.The BMZ is supporting the Moroccan government’s efforts to reach its climate targets and achieve a just transition.

Germany and Morocco also work together in areas outside the agreed priority areas. For example, the German government is expanding its centres for jobs, migration and reintegration, and is supporting Morocco in pursuing a process of decentralisation.