Everyone suggests that Morocco will reach the top 50 in the Doing Business ranking to be announced in March thanks to major movable security reforms that will improve the country’s mark on the indicator of getting loans. The echoes are, in fact, favorable, according to a source close to the file. The course should be maintained in several aspects including the reduction of costs and the optimization of deadlines. A national business environment policy is ready and will soon be announced.
Morocco is on track in the Doing Business ranking. The top 50 will be accessible from the 2021 edition, according to a source familiar with the matter. The results of the 2021 rankings to be released, as usual, last October will be announced in mid -March by the World Bank. This postponement, it should be noted, was due to “data integrity and objectivity problems” recorded in the files of four countries (Azerbaijan, Saudi Arabia, United Arab Emirates and China). Irregularities that had the effect of a cold shower. The World Bank has cleaned up to maintain the credibility of its ranking, which is the most evaluated by investors. The judgment of 2021 is awaited with optimism by Morocco. Only three or four areas separate the kingdom from its purpose. The latest feedback on the Moroccan file could not be more positive, according to our source.
Easy access to financing
In fact, several reforms have been recorded, led by those related to access to credit. This is the indicator that has downgraded Morocco, but it is clear that this will no longer happen thanks to major reforms related to movable security that were not included in the 2020 ranking even though Morocco adopted the relevant law in April 2019. It is really necessary to complete the system. The slowness in the end of this reform has punished Morocco, which even recorded a seven-place drop in 2020 on the “Getting loans” indicator compared to 2019, which dropped from 112th to 119th rank. It is also predictable. Moroccan officials are well aware of the shortcomings of the national legal system. In relation to access to credit, the National Committee for the Business Environment determined, at the time of publication of the final ranking, that in terms of scope, extent and accessibility of credit information, Morocco was a pioneer in the disclosure index of information. . However, the index of legal protection of borrowers and lenders, which is essentially related to the movable security system, penalized the kingdom’s ranking on this indicator and reduced the country’s overall ranking in the Doing Business report. And it is in this context that the new movable security device and the operationalization of the National Electronic Register of movable security have been in place since last March. This mechanism, which is the culmination of the overall movable security reform project, has proven extremely useful during the health crisis. This will allow Morocco to position itself properly on this indicator, for the first time. International experience shows that the National Register of Movable Securities greatly improves access to financing, especially for young people and women who often do not have the real estate securities required by financial institutions.
Reaching the top 50 will not ease the pressure on Morocco, which must always remain vigilant and continue the dynamics of business environmental reforms, according to our source. We are now playing in the major leagues, i.e., the OECD countries and the most advanced countries in terms of the business environment, indicating continuous improvement of the regulatory framework in accordance with objective international standards to continuously improve the relationship between the company and the administration. Morocco certainly no longer has indicators under the scale in the Doing business ranking, but the course must be maintained in several aspects: further simplification of procedures, reduction of costs, optimization of deadlines, digitize management, create one-stop shops, further modernize laws … In fact, competition is intensifying in many countries that don’t skimp on ways to prepare their Doing Business file. Some even use international companies. Morocco, in part, relies on 100% Moroccan expertise (the CNEA) that facilitates the improvement of Morocco’s international rankings. It must be said that the game is worth the candle because this international ranking represents a barometer of the business climate and a benchmark tool at the international level.
Business environment: a five -year national policy
The government is preparing to give the green light to a national business environment policy that “has nothing to do with international rankings”, our source stressed. Moreover, some of the kingdom indicators are not taken into account by Doing Business. It is a structured national strategy spread over the next five years that should take precedence over priorities. This approach should address issues related to Morocco based on a diagnosis established with Moroccan operators. The national policy in this area, which will be announced soon, has been developed in consultation with representatives of the private sector and all ministerial departments concerned over the past nine months. It should enhance the work of the National Business Environment Committee, which will enter its second decade of existence with a better structured approach and new tools. The goal is to undertake end-to-end reforms based on collaborative work and open to international best practices. The challenge is also to fully seize post-covid opportunity and reposition itself on the map of international investment.
Jihane Gattioui / Eco Inspirations