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

Core area “Sustainable economic development, training and employment” More jobs for young people in rural areas

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.

Promoting small businesses

More than 95 per cent of private companies in Morocco are micro, small and medium-sized enterprises. They play an especially important role in sustainable economic development. However, many of these companies lack the necessary capital to be able to invest and create new jobs. Using the instruments of Financial Cooperation, Germany is therefore engaged in efforts to promote lending to MSMEs, provide financing for innovation and business start-ups, and develop approaches for boosting structurally weak rural areas.

Furthermore, a digital system is to be developed in the future, with German assistance, which will offer MSMEs equal access to information, public services and digital solutions.

Youth employment

In order to lower the high level of youth unemployment, experts working within the framework of Technical Cooperation have been cooperating with local private companies to develop courses for practice-oriented vocational training.

Furthermore, the BMZ is supporting the Moroccan government in extending its employment policy to include rural areas. This is being done by identifying branches of the economy with substantial potential for creating jobs, developing appropriate training courses and setting up careers advice centres to help young people decide what career path to take or help them start a business. Mobile job centres are also being used in order to reach the rural population.

Another priority area of German activities is empowering women. For example, special advisory services for women and girls in the field of information and communication technology are being offered with a view to increasing the proportion of women in the digital economy. Another focus of German support is on promoting sustainable “green” jobs.

Special Initiative “Decent Work for a Just Transition”

The aim of this BMZ special initiative is to promote private investment in Africa and thus create jobs and training places. To this end, the BMZ is working closely with German businesses and is promoting university-business partnerships. In Morocco, the focus of the special initiative is on the automotive and food industries.

Social protection

One of the challenges Morocco wants to address is developing its social insurance systems so as to reach more people as part of the inclusive development of the country’s economy and society.

It is intended for example that, within just a few years, there will be a system of health, unemployment and retirement insurance in place that will benefit all people in the country, including structurally disadvantaged population groups. With a loan of 122 million euros from KfW Development Bank, Germany is supporting an important and comprehensive programme of reforms by the Moroccan government that will set up a nationwide social protection system (see also: Social situation).

As at: 10/03/2023