1. Morocco CPF (FY19-24) Focus Areas and Objectives
Overall Strategic Goal
Contribute to Morocco’s social cohesion by improving the conditions for job creation and reducing social and territorial disparities
Focus Area 1
Promote job creation and private sector growth
Focus Area 2
Transforming Human Capital
Focus Area 3
Promoting Inclusive and Resilient Territorial Development
CPF Objectives
Improve the business regulatory and competition environment
Expand growth opportunities of the private sector, with a focus on MSMEs and youth employability
Improve access to finance
CPF Objectives
4. Improve access to quality childhood development services
5. Improve quality and efficiency of education systems
6. Improve quality and efficiency of health delivery systems
7. Strengthen social protection for the poor and vulnerable
CPF Objectives
8. Enhance performance of systems of cities and towns
9. Improve water resource management and service sustainability
10. Strengthen adaptation to climate change and resilience to natural disasters
Crosscutting: Digitization and Gender will be embedded in each focus area
Foundation : Governance and Citizen Engagement
CPF Objective 11: Improve Transparency and develop the building blocks for enhanced citizen-state engagement
CPF Objective 12: Improve the efficiency of public spending

2. Focus Area 1: Promote job creation and private sector growth
This focus area will contribute to reviving job creation through private sector growth, by opening more opportunities for business and leveraging disruptive technologies, articulated around 3 objectives : (1) More efficient environment for business and competitiveness; (2) Increase opportunities for private sector growth, with a focus on MSMEs and youth employability; and (3) Improving access to finance.
Objective 1: Improve the business regulatory and competition environment
Objective 2: Expand growth opportunities of the private sector, with a focus on MSMEs and youth employability
WBG Support
The World Bank Group (WBG) will contribute to improve business regulatory and competition environment, so that the wider private sector can compete with incumbents and leverage Maximizing Finance for Development (MFD). A combination of lending, advisory and analytical engagements across the International Finance Corporation (IFC) and the World Bank (WB) will seek to facilitate second generation business regulatory reforms, reduce the cost of doing business, support the digitalization of business services, and enable fairer competition with incumbents. It will relaunch the PPP agenda, including through targeted State-Owned Enterprise (SOE) reforms and the financing of their capex. It will pay close attention on strengthening the capacity to implement business reforms, particularly in relation to MFD and disruptive technologies.
The WBG will seek to expand the growth opportunities of MSMEs, develop their capabilities to adopt and adapt disruptive technology to local contexts, open new markets, access key value chains, and contest markets at home, in Africa and Europe. The WBG will focus on creating more opportunities for existing MSMEs and start-ups, leveraging digital infrastructure for platforms, supporting market access (digital procurement, MFD), and enhancing the quality of business development services. Engagements will have special focus on youth and female entrepreneurs.
HOW
HOW
Financing: Ongoing
Strengthening Agri Value Chains
Financing Startups and Innovative MSMEs
Financing: Pipeline
Youth Economic Inclusion
IFC-co-investment with Moroccan companies
Nador West Med Economic Corridor
ASA: Ongoing
Country Private Sector Diagnistic
Improving connectivity
Review of auto, aero and textile industries
ASA: Pipeline
Improvement of e-procurement system to support SMEs’ access to public contracts
Entrepreneurship Ecosystem (IFC)
Business Services for exporting MSMEs
Financing: Ongoing
- Competitiveness Development Policy Loan (DPL)
Financing: Pipeline
DPL Financial Inclusion and Digital Economy (FY19)
P4R (MFD/PP) (FY20)
ASA: Ongoing
Country Private Sector Diagnostic
Maghreb Infrastructure Diagnosis (MID) /SOE Reform (ONCF)
Emerging Digitech
ASA: Pipeline
Develop capacity of competition council
Support of CNEA (IFC)
Compact with Africa: Business framework

3. Focus Area 1: Promote job creation and private sector growth
Objective 3: Improve access to finance
The Country Partnership Framework (CPF) will support Morocco’s policy initiatives on financing MSMEs and support its wider financial inclusion agenda with a view to foster economic formalization. Engagements will support the implementation of the new national financial inclusion strategy, esp. reducing the wide gender gap, and diffusion of digital financial services through enhanced contestability. IFC and Bank will work jointly toward diversification of financing solutions for MSMEs beyond traditional banking.
HOW
Financing: Ongoing
-Capital Market Development and SME finance (DPL)
Financing: Pipeline
DPL Financial Inclusion and Digital Economy (FY19)
Leasing Company for Rural Value Chains (IFC)
ASA: Ongoing
National Financial Inclusion Strategy
Enabling Payment Innovations
ASA: Pipeline
Joint Capital Market Development Initiative
Supply Chain Finance (IFC)
Digital Collateral Registry (IFC)

4. Focus Area 2: Transforming Human Capital
Transforming Morocco’s human capital is widely seen as an imperative to accelerate growth and convergence as well as to contribute to social cohesion. The focus area will concentrate on interventions that promote quality and efficiency in the delivery of education and health services, establishment of a robust cutting-edge social protection system along with improving the effectiveness of early childhood development. The CPF will aim to achieve greater inclusion of women, youth and vulnerable.
Objective 4: Improve access to quality childhood development services
Objective 5: Improve quality and efficiency of education systems
The CPF program will aim at supporting enhanced Early Childhood Development outcomes in education, health and nutrition, and aim at laying a stronger foundation for holistic development in the early years and for subsequent human capital acquisition throughout the life cycle. They are also crucial in facilitating the acquisition of socio-emotional skills required by the labor market of tomorrow. This will be achieved through a multi-sectoral approach addressing both supply and demand constraints and focused on reducing the gender and location gaps in early childhood outcomes.
The CPF program will support Government’s Vision with a particular focus on improving the efficacy and efficiency of the learning process with a view to impacting the key determinants of learning outcomes. This will include in particular the overhaul of the teacher management policies to ensure that teachers are recruited, allocated and trained in ways that promote the acquisition of basic skills such as literacy and numeracy with a focus on the early grades. The WBG program will also support improvements in the governance of the education system by building the capacity of the regional academics and providing support to school based management mechanisms.
HOW
HOW
Financing: Ongoing
-Health (PforR)
Financing: Pipeline
Education support Program (PforR)
Health Operation
INDH3
ASA: Ongoing
Human Capital Project Policy Dialogue
ASA: Pipeline
Support to Human Capital for Vulnerable Children
Skills for the Future
Financing: Pipeline
-Education Support Program (PforR)
ASA: Ongoing
-Human Capital Project Policy
ASA: Pipeline
Support to Human Capital for Vulnerable Children
Skills for the Future

5. Focus Area 2: Transforming Human Capital
Objective 6: Improve quality and efficiency of health delivery systems
Objective 7: Strengthen social protection for the poor and vulnerable
Building on the Government’s health sector Vision of 2025 and the goal of achieving Universal Health Coverage (UHC), the CPF program will support (i) enhancing health service delivery through strengthening human resources policy and expanding medical coverage, improving quality of health care services at different levels of health facilities, and continuing the support of primary health care with a focus on rural areas; (ii) strengthening governance and increasing transparency and accountability in the health sector, and (iii) improving health financing system toward expanding financial protection.
The WBG will continue to support Government’s initiative in developing the service delivery infrastructure of the Social protection program by operationalizing national population registry and social registry. This will help simplify access to Social Protection (SP) programs, harmonize intake, improve targeting, as well as improve outreach and reduce error. The CPF will also explore opportunities to expand SP programs particularly in second generation reforms focused on improving financial inclusion of the poor, incorporating well targeted cash transfer program, reform subsidies and create fiscal space to cover some of the groups that are not covered by the Social Security Number (SSN).
HOW
HOW
Financing: Ongoing
-Health Sector Support (PforR)
Financing: Pipeline
Health Operation
INDH3
ASA: Ongoing
Health PHRD Grant
ASA: Pipeline
Support to Human Capital for Vulnerable Children
Human Capital Project Policy Dialogue
Health Policy Dialogue
Financing: Ongoing
-Identity and Targeting for Social Protection
ASA: Pipeline
Maghreb Policy Dialogue
Human Capital Project Policy Dialogue.

6. Objective 8: Enhance performance of systems of cities and towns
Focus Area 3: Promoting inclusive and resilient territorial development
This focus area contributes to promote inclusive and resilient territorial development through interventions enhancing the performance of the urban system, reducing territorial disparities at different spatial scales, improving sustainability of water resource management in addition to strengthening resilience of the poor and vulnerable to adapt the impacts of climate change and natural disasters.
Objective 8: Enhance performance of systems of cities and towns
The CPF program will support the government to strengthen urban planning, management, governance and systems of cities. In support of the urbanization process, the WBG engagement will include: (i) linking citizens (including poor, women, and people with limited mobility) to economic opportunities; ii) boosting municipal capacity to deliver urban services and infrastructure with special attention to underserved neighborhoods; iii) improving urban mobility; and (iv) strengthening capacity for mobilizing and managing financing, governance, and public and private investment for urban infrastructure. In parallel, IFC will help set up a new model for municipality finance and will work with national and sub-national governments on structuring public–private partnerships transactions for efficient infrastructure delivery.
HOW
Financing: Ongoing
Casablanca Municipal Support Program
Morocco Urban Transport
Support to Local Government
Financing: Pipeline
Support Program to Cities (IFC-WB)
Nador-West Economic Corridor
Urban Transport – Additional Financing (AF)
ASA: Pipeline
Transport and Jobs
Urbanization Review
Nador West Med Study
Rural Development Policy Note

7. Focus Area 3: Promoting inclusive and resilient territorial development
Objective 9: Improve water resource management and service sustainability
Objective 10: Strengthen adaptation to climate change and resilience to natural disasters
The WBG will provide a multi-pronged strategy to address the sustainability of water resource management by developing a policy note on adapting water resource management to the changing future. It will also promote access to safe drinking water and sanitation services in the underserved rural communities. The program will also support the efficiency and sustainability of key water institutions in charge of water service delivery, and irrigation. The CPF will also explore opportunities in increasing the mobilization of the private sector.
The WBG will provide integrated approach to improve climate and disaster resilience in Morocco. The WB has developed a comprehensive program to support the government’s climate change agenda by developing a disaster risk information system, strengthening the risk reduction and financing instruments to facilitate Morocco’s access to emergency financing in case of disaster. The CPF program will also support i) the adoption of climate smart and digital technologies to enhance the productivity and diversification in agriculture; and ii) the promotion of sustainable blue economy.
HOW
HOW
Financing: Ongoing
Rural Water Supply
Large Scale Irrigation Modernization Project
Financing: Pipeline
Program to Improve Water and Sanitation System Performance
Desalination PPP (IFC)
ASA: Pipeline
Morocco Water Sector Management
Nexus Water Energy-Agriculture
Financing: Ongoing
Integrated Disaster Risk Management and Resilience
Large Scale Irrigation Modernization
Social and Integrated Agriculture
Strengthening Agri Food Value Chains
Financing: Pipeline
Catastrophe Deferred Drawdown Option (CAT DDO)
Smart and Digital Agriculture Program
Integrated Coastal Zone Management and Sustainable Development of Blue Economy
ASA: Ongoing
Partnership for Market Readiness (PMR)
ASA: Pipeline
Agriculture Sector Insurance Technical Assistance (TA)

8. Foundation : Governance and Citizen Engagement
Objective 11: Improve Transparency and develop the building blocks for enhanced citizen-state engagement
The WBG support will be provided to generate data/evidence/analysis that can inform public policy debate and ensure that mechanisms are in place to provide open access to data at the appropriate levels for accountability and transparency.
The WBG will also support recent Government efforts to enhance the implementation of new rules allowing citizens’ greater voice in the policy and program deliberations in Parliament. To generate sufficient trust for citizens to engage via these new openings, efforts to promote concrete citizen feedback and engagement in both territorial development and service delivery, will be pursued.
HOW
Financing: Ongoing
-Support for new governance framework (grant)
- Parliament Capacity Project (grant)
Financing: Pipeline
Governance, Statistics Operation (Public Finance Management (PFM); Public Investment Management (PIM) & Procurement activities included)
ASA: Ongoing
Maghreb Governance and Political-Economy Filter
Public Investment Management Reform
Measure and manage fiscal risks
2nd stage of the pension reform
ASA: Pipeline
Compact with Africa PPP/SOE reform
IFC Corporate Governance Framework
Tax Administration Diagnostic Assessment Tool
Strengthening the framework and practices of public procurement

9. Foundation : Governance and Citizen Engagement
Objective 12: Efficiency of public spending
The Bank will offer a suite of services, including financing, technical assistance, advisory services, and convening power to support Morocco in the following areas: development of e-government, including the digitization of Public Financial Management systems and processes; design and implementation of a coordinated framework for managing Morocco’s public investment portfolio with a view to improve its allocative efficiency; reform of governance and control framework of SOEs, both at the macro level and in specific sectors where SOEs deliver critical social services; budget reform and the roll-out of program-based budgeting; support to procurement system, and tax and pension system reform.
HOW
Financing: Ongoing
-Support for new governance framework (grant)
- Parliament Capacity Project (grant)
Financing: Pipeline
Governance, Statistics Operation (PFM, PIM & Procurement activities)
ASA: Ongoing
Maghreb Governance and Political-Economy Filter
Public Investment Management Reform
Measure and manage fiscal risks
2nd stage of the pension reform
ASA: Pipeline
Public Expenditure Review (PER)
Reform of PPP / SOE - Compact with Africa
IFC Corporate Governance Framework
Tax Administration Diagnostic Assessment Tool
Strengthening the framework and practices of public procurement