FOM Newsletter July 2003
Morocco Week in Review 
July 5 2003

RABAT, July 04 - H.M. King Mohammed VI sent US president George W. Bush a congratulation message on the occasion of the US independence day. The sovereign expresses satisfaction at "the steady development of the special longstanding friendship enjoyed by the United States of America and the Kingdom of Morocco" and renews "determination to enhance our excellent political ties, by building an exemplary economic partnership". The royal message also praises the progress made in the negotiations for the conclusion of a free-trade agreement.  

Here follows the full text of the message: "Mr President, My Great Friend, As the friendly American nation celebrates its Independence Day, it gives me great pleasure to extend my heartfelt congratulations to your Excellency, together with my best wishes to you and your esteemed family for good health and happiness, and to the great American people for further progress and prosperity.

I would like to take this opportunity to tell you how pleased I am with the steady development of the special longstanding friendship enjoyed by the United States of America and the Kingdom of Morocco. Similarly, I greatly value the bonds of sincere friendship and mutual esteem which unite us personally, as well as the fact that we agree entirely on issues of common interest. I also wish to assure you of my determination to enhance our excellent political ties, by building an exemplary economic partnership. In this regard, I would like to say how satisfied I am that so much progress has been made in the negotiations for the conclusion of a free-trade agreement.

Our two nations share a commitment to the values of freedom, democracy, peace, coexistence and open interaction. They both reject violence, extremism and terrorism, and they will continue to work, at our behest, to uphold and disseminate these ideals everywhere in the world. In this connection, I would like to commend your determined effort to build a just and comprehensive peace in the Middle East region, so as to provide for all its peoples to live in peace and security, and to enable them to devote their energies to achieving progress and prosperity. I would also like to express my full support for the road map as a peace plan sponsored by you and other actors on the international stage.  Mr. President, My Great Friend, please accept the assurances of my highest esteem". MAP 2003

US Ambassador in Morocco Praises Moroccans' Ancestral Tolerance and Anti-Violence Values.

RABAT, July 04 - US ambassador in Rabat, Margaret Tutwiller, praised in an interview published this Friday by two Moroccan dailies the Moroccan people's ancestral culture based on peace, tolerance, refusal of violence and of tolerance.  The diplomat, whose country is marking today its national day, stressed that Americans have brought total support to Moroccans and to King Mohammed VI following the string of five terrorist attacks that rocked Casablanca last May 16.

After she underscored that every country in the world is engaged in the war against terrorism, Tutwiller said Washington is firmly adhering to the fight against terrorism by exchanging information on terrorist networks. The US diplomat also said she is convinced that those who attacked the USA are the same ones that are attacking Morocco and other countries. "These enemies are after our way of life and our values of freedom and tolerance", she insisted.

For the US diplomat, the only solution lies in eradicating this type of destructive ideas and the best means is economy.  After she recalled that Morocco and the USA have been enjoying friendship for more than two centuries, the US diplomat expressed Washington's readiness to develop its multi-sector support to Morocco. There are several indications that since September 11, there is an increased US interest for Morocco, she went on, citing as an example efforts to conclude a Morocco-US free trade agreement and bilateral cooperation in parliamentary and military fields. © MAP 2003

Morocco, recipient of US General System of Preferences expansion.

Morocco is among the countries that will benefit from the expansion of the US GSP (generalized system of preferences) proclaimed Tuesday by US president George W. Bush, said a press statement by the bureau of US trade representative. The program grants Bangladesh, Brazil, India, Morocco, Thailand and Uruguay waivers and re-designations for specific products. The President's proclamation extends GSP benefits to approximately $900 million in imports from developing countries a year with the Philippines, Argentina and Turkey emerging as the largest beneficiary as a result of product requests approved by Bush.

Under the GSP, the imports of more than 140 developing countries enter the American territory duty-free. Last year, imports valued at more than $17.5 billion entered the US duty-free under the program.  GSP renewal evidences the US administration's commitment to offer developing countries business opportunities and encourage economic development, said US Trade Representative, Robert B. Zolellick. GSP initiative, which was re-authorized last August as part of the Trade Act of 2002, was launched in 1976 by the United States and 19 other industrial countries.

Some 3,000 new cases of chronic kidney failure recorded in Morocco annually

Some 3,000 new cases of chronic kidney failure are recorded in Morocco every year, the Moroccan association of nephrologists (SMN) said in a release Wednesday. The annual incidence of the disease is estimated at an annual 110 cases out of one million inhabitants. Since the opening of the first Moroccan dialysis center in 1980, the number of treated patients saw a significant rise. Specialized centers have also increased in number to reach some 85. However, the release goes, the number of treated patients remains insufficient and more efforts must be made to deal with more patients, especially indigent ones.

Women's summit focused on many themes

The summit agenda of the international women summit, in the Moroccan city of Marrakesh Saturday and run for three days, will cover a variety of themes, atop of which the development of women, women social, economic and political role in he world of today, their rights and their contribution to making the world a better place to live in.  Egypt's delegation will be led by Secretary General of the Egyptian National Council for Women Ferkhonda Hassan who is also the chairwoman of the Shura Council's Human Development Committee.

The previous women summit was hosted by Barcelona, Spain, last year. Hassan said that the conference will discuss the economic support of women, chances of investment in the Arab region and improving skills. She added that the conference aims at increasing women participation in world market and exchanging experience infield of small projects.

King Mohammed underlines pledge to women's promotion.

Morocco's King Mohammed VI on Saturday underlined pledge to continue endeavouring for the promotion of women's condition through involving them in efforts for economic development. "I know it is essential to mobilize women and get them involved in the effort to achieve the targets of economic growth and sustainable development we have set for our country," King Mohammed VI said in a message read on his behalf by Princess Lalla Hasna (the king's sister) at the opening of the World Summit of Women, held in Marrakesh.  "That is why, the king explained, I took it upon myself to work for the improvement of the status of women, by capitalizing on their achievements and making sure that they enjoy their human, economic and political rights, in this connection, the election of 35 women mps is another positive development in our struggle to build a modern, democratic society." The king conceded that "notwithstanding the fact that our country has made substantial headway in improving the status of women, we should not forget the difficulties being faced by a large number of women who live on the fringes of society, suffer from exclusion or are denied their rights."  "We have focused our interest, first, on rural women, the group most effected by the ills of illiteracy and poverty, two issues I firmly believe are at the heart of human rights, just as they may constitute structural obstacles to democracy," said King Mohammed VI.

He added "We are also endeavouring to rid women of all the forms of injustice they are subjected to, and we seek to upgrade the existing legislation, taking into account the fact that women have shown a keen awareness of their rights and obligations, and that Morocco has made significant progress in all fields, thus, as Amir al Muminin, defender of the faith and its followers, I have set up a special committee and instructed its members to pay heed and carefully examine all the grievances voiced by women's associations and by all the forces that make up the lifeblood of the nation, and to make recommendations to me on mechanisms and procedures needed to ensure proper implementation of the Mudawana family code. They were also instructed to make suggestions concerning amendments which could be introduced therein and which should be in line with our identity and with the teachings of our religion. In this connection, there should be special 'emphasis on family cohesion and social harmony.'" King Mohammed VI also renewed Morocco's commitment "to carry on with its quest for progress and its endeavour to build a project for a truly democratic and modern society

World Women Summit calls for favorable environment for better participation of women

The World Women Summit called for a clear political commitment to guarantee democracy and good governance and provide a favorable environment for a better political and economic participation of women.  At the end of the three-day forum, in Marrakech, Morocco, participants agreed on major priorities related to guaranteeing access to education, health promotion and reforming codes regulating family laws, and recommended reinforcing partnership between governments and the social society, enhancing the role of the private sector and facilitating access to funds, markets and technologies.

They highlighted the necessity to promote small and middle-sized enterprises, reinforce the role of the media and elaborate education and training programs dedicated to women, pleading for economic, financial, tax and customs reforms and for the elimination of administrative obstacles. Women leaders further urged for the humanization of globalization, a fair sharing of wealth and national solidarity between women through training networks and the multiplication of encounters. Dubbed "Women Davos," the summit, held for the first time in an Arab land, brought together more than 600 women leaders from the world of business, politics, and associations.

WASHINGTON, June 30 - Moroccan delegate minister of foreign affairs and cooperation, Taieb Fassi Fihri, participated here on Friday in a workshop dedicated to the free trade accord (FTA) Morocco and the US plan to conclude before the end of 2003.  Fihri, Morocco's chief negotiator for the conclusion of the FTA, said at the workshop, organized on the fringes of US-Africa business summit, the FTA will create better business opportunities for US exports not only for Morocco but also for the whole African continent. "As soon as partnership between the two countries' private sectors will be consolidated by the FTA, the US private sector will benefit from the business network that Morocco has established with more than forty African countries," he stressed, recalling the several agreements Morocco signed with many African countries, notably with the least advanced. The project will energize certain sectors of the Moroccan economy, he underlined, highlighting the economic program launched by the kingdom to reduce inflation, liberalize economy and trade, privatize sectors like Banks, telecommunications and energy. The FTA, Fassi went on, will improve the competitiveness of US products in relation to European ones, and will support Morocco's economic reforms, drain foreign investments, suppress customs duties on US new technologies and reinforce the protection of intellectual property. Assistant US trade representative for Europe and the Mediterranean, Catherine Novelli, said the US is negotiating with Morocco the opening of the biggest market it has ever negotiated with a country, underscoring that through the accord, Morocco and the US pledge to develop partnership in all realms, including services. Novelli, also US chief negotiator for the FTA with Morocco, noted that American firms operating in Morocco hail the appropriate environment for investment in the North African country. MAP 2003

Improving the situation of Moroccan women can only be achieved through fighting illiteracy, secretary of state in charge of literacy and informal education, Najima Rhozali, said in Marrakesh on Saturday. Speaking at a forum on economic development on the sidelines of the World Women Forum, Rhozali said the situation in Morocco raises serious concerns since amidst the persons aged more than 10 years, 48 percent are illiterate and 2 million children are unschooled.

Twelve million persons in Morocco are illiterate, she said, adding that Moroccan women are particularly affected by the phenomenon with a rate of 62 percent compared to 38 percent for men, and that rural areas are more affected than urban areas. The short-run objective of the state secretariat in charge of literacy and informal education is to downsize illiteracy rate from 48 percent to 35 percent by 2004, she said, adding the long-run goal is to reach a zero percent rate by 2015.

Regional delegate of the International Committee of the Red Cross (ICRC) for the Maghreb, Harald Schmid De Gruneck, said here on Saturday the current mission of his organization in Morocco is to promote international humanitarian law, particularly in the academic realm. De Gruneck told a press conference that "the implementation of the international humanitarian law concerns the harmonization of the Moroccan legislation with the requests of the international law and drafting a specific law for the protection of the ICRC and CRM (Moroccan Red Crescent)'s symbols. He added that talks with Moroccan authorities discussed the creation of a national committee to implement this law, and voiced hope that the committee will be created as soon as possible. For his part, ICRC councilor for Middle-East and Maghreb affairs, Amour Zemmali, noted that the ICRC makes experts in international humanitarian law at the disposal of Arab countries to integrate humanitarian law in high school and university programs.  Cooperation between ICRC-CRM and the Moroccan ministry for national education led to the designation of Morocco as a leading site for the implementation of the program "Let's Explore Humanitarian Law" developed by ICRC in 1998, he went on.. At the end of a training session on international humanitarian law organized for CRM officials this June 26-27, a two-year cooperation program between Morocco and ICRC labeled "International Humanitarian Law: Morocco" was announced.

The US Partnership for Learning, destined to Arab states, has started to yield fruit in Morocco and cultural exchanges programs will be launched this summer, Patricia Harrisson, Assistant of the US secretary of state for cultural and educational affairs, said in Marrakesh on Saturday. Harrisson told a press conference held on the sidelines of the International Women Summit (June 28-30) that the American initiative, announced during the international conference of higher education and the labor market in the Arab world organized last year in Marrakech, was defined in such a way as to meet the needs expressed by official bodies and NGOs of the benefiting countries.  The initiative, she went on, comprises many programs that aim to promote education part of a sustained commitment and a genuine partnership.  The first phase of the initiative includes teaching English in primary schools, meeting the needs of teachers and encouraging exchanges between the two countries' youth via the internet and linguistic and cultural stays. Evoking the difficulties that the Arab youth faces to obtain visa for the USA, Harrisson said her department is working to make the procedures more flexible, particularly by providing complete information in the internet. The world women summit is held this June 28-30 in Marrakech where more than 600 women will exchange and share experiences in business and define future strategies.

Annual average of medicines' consumption in Morocco is no more than us $17 by person

The annual average of medicines consumption in Morocco does not exceed 170 Dhs (US $17) by person, which is very low compared to the average in other Mediterranean countries, President of pharmacists' Union of Al Jadida, Nezha Hefti, said here on Friday. This reality is due to the weak rate of medical coverage and the different taxes levied on medicines and that make their prices out of reach for a great part of the population, she added, underlining that to address the problem there should be a genuine policy on generics. Evoking problems that pharmacists face, Hefti said the profession is currently going through a structural crisis, stressing that it is crucial to make a real involvement of pharmacists in the country's health orientations. In this regard, she recalled the demands of pharmacists concerning the sector's regulation, calling for the adoption of bills that reform the sector.

Gloomier tourism prospects in Morocco Poll shows Iraq war, deadly Casablanca blasts will mean sharp drop of 40 percent in Morocco tourism in 2003.  

RABAT - Moroccan travel agents have predicted tourist activities in the north African kingdom will drop 40 percent this year due to the war in Iraq and deadly attacks six weeks ago in Casablanca, a poll published Tuesday said.  Two-thirds of Moroccan travel agents said the number of reservations they have taken has fallen, said the poll carried out by the National Federation of Travel Agents of Morocco (FNAVM) and published Tuesday in L'Economiste newspaper.  Business has dropped an average of 40 percent against last year, "in itself not a benchmark year", said the survey which polled 27 travel agents early last month. Forty percent of Moroccan travel agents are bracing for a poor or very poor season, having focussed the bulk of their activity on package holidays, the poll said.

Package holidays have been hit hard by the downturn, while sales of airline tickets have held up better than most sectors in the travel industry, buoyed by sales to expatriate Moroccans returning home for a visit. Two-thirds of those polled revised their business forecasts downward following the attacks in Morocco's economic hub, Casablanca, on May 16, in which 44 people died.

RABAT - Moroccan travel agents have predicted tourist activities in the north African kingdom will drop 40% this year due to the war in Iraq and deadly attacks six weeks ago in Casablanca, a poll shows. Two-thirds of Moroccan travel agents said the number of reservations they have taken has fallen, said the poll carried out by the National Federation of Travel Agents of Morocco (FNAVM) and published Tuesday in L'Economiste newspaper. Business has dropped an average of 40% against last year, "in itself not a benchmark year", said the survey which polled 27 travel agents early last month. Forty% of Moroccan travel agents are bracing for a poor or very poor season, having focussed the bulk of their activity on package holidays, the poll said.  Package holidays have been hit hard by the downturn, while sales of airline tickets have held up better than most sectors in the travel industry, buoyed by sales to expatriate Moroccans returning home for a visit. Two-thirds of those polled revised their business forecasts downward following the attacks in Morocco's economic hub, Casablanca, on May 16, in which 44 people died. AFP

Rabat, 2 July: The Moroccan Health Department announced this Wednesday [2 July] it has set up a committee to prevent plague creeping into Morocco after an outbreak of the epidemic in Western Algeria.  The ministry says an inter-disciplinary committee, comprising representatives from health, interior and agriculture ministers, together with the health department of the army and the Royal Gendarmerie, met, on June 26, to identify emergency measures needed in eastern Morocco, mainly a hygiene and disinfection campaign besides tightening border checks. Vigilance and follow-up commissions have also been created in each province and prefecture to keep the health situation under control. As soon as the World Health Organization (WHO) announced the plague outbreak in Algeria, the Moroccan Health Department held a series of meetings on decisions needed to contain the spread of the lethal Yersin bacillus-caused epidemic.

WHO said: "As of 23 June, the Ministry of Health, Algeria, has reported a total of 10 cases, 8 cases of bubonic plague and 2 of septicaemic plague, one of which was fatal, in Tafraoui, on the outskirts of Oran. Cases have been treated with antibiotics and preventive measures have been taken. To date, no new cases have been officially reported." Source: MAP news agency web site, Rabat, in English 2 Jul 03. © BBC Monitoring Publication: BBC Monitoring International Reports Distributed by Financial Times Information Limited - Asia Africa Intelligence Wire

Human rights process in Morocco confronted to serious tests in 2002, Arab human rights organization

The process of human rights and liberties consolidation in Morocco was confronted to serious tests in 2002 and the first 6 months of 2003, says the Arab Human Rights Organization in its annual report made public last week. The most important tests, notes the report, consist in preserving democratic assets achieved over the past years and measuring the evolution of public liberties and the success of the experience of alternation which brought for the same to government in Morocco parties from the opposition. The organization pointed out to the case of illegal immigration victims whose number is estimated at 4,000 persons since 1997. It also cites the Moroccan parliament's adoption of the anti-terrorist law, underscoring that it caused controversies because it enlarged the scope of infractions and sanctions in this regard. Evoking the treatment of prisoners and detainees, the report deplores the "bad conditions" prevailing in Moroccan prisons, notably due to overpopulation. As for the press freedom, the Arab human rights body said it has widened recently underlining that the Moroccan press raises several issues including the dangers to which Moroccan illegal immigrants are confronted and the repercussions of corruption on economy.

Five major projects in tourism, real estate and leisure will be launched shortly in the Moroccan economic and financial capital, Casablanca, set to increase the city's economic competitiveness and upgrade investments. The projects, worth over 1.3 billion Dirhams (over US$ 140 million) were approved by the inter-ministerial investments commission. The first project, "Casa city," a hotel compound of more than 550 rooms, offices and a shopping center is worth one billion DH (US$ 106 million ). It will be carried out by French tourism group "Accor." The second project, worth 350 million DH (US$ 40 million), is a real estate one that consists of 10-storey buildings for lodging, offices and shops. It is scheduled to generate some 2.600 jobs. The commission also approved a project of a theme park, a sports and leisure club extending over 18 hectares, the construction of sports fields over 5 hectares and a children space featuring restaurants, a rest area and a supermarket.  The commission says other industrial projects are being examined. Also, the Moroccan government signed on Tuesday with a group of Moroccan and foreign investors four conventions for a series of tourism projects, worth 581 million DH (US$ 61.8 million) in various Moroccan regions The first convention, signed with Moroccan Dounia Group, provides for the refurbishing of two luxury hotels in Marrakech, for a total cost of 203 million DH (US$ 21.5 Mln).

Under a second convention, French group Tikida will also invest 338 million DH (US$ 35.6 million) to revamp a hotel in Agadir (southwestern Ocean resort city) while the Chafarina's Beach company -owned by a group of Moroccan nationals living in Belgium- will build in Al Hoceima (northeastern Mediterranean sea resort) a tourism compound for an investment of 25 million DH (US$ 2.6 million) under an addendum to an investment contract signed last year with the government.

The fourth convention, between the government and French travel group Fram, provides for the revamping of two hotels in Warzazate and Zagora (southern Morocco). Investments are estimated at 15 million DH (US$ 1.6 million). Prime minister, Driss Jettou, who chaired the conventions signing, welcomed the new agreements that come to reflect investors' confidence in Morocco, despite a difficult international juncture.  He said investments have soared to 7.4 billion DH (US$ 787 million) in the first half of 2003, which is a 277% increase compared to the same period of 2002.

An association of Moroccan expatriates has handed out a donation of medical equipment to the Rabat cancer hospital in Rabat (INO). The handout by the Belgium-based association "Ceuvre Caritative envers les pays en voie de developpement" (charity for developing countries) comprises various equipment used in cancer treatment (surgery, chemotherapy and anesthesia). The donation will cover 6 months of the hospital needs. The association of the hospital friends (AMINO) had appealed for financial and material support to cancer patients, especially most destitute ones. It said between 35,000 and 40,000 new cancer cases are reported every year in Morocco, including 5,000 cases treated at the Rabat hospital. Each week, 30 major surgeries, including 85% on persons belonging to the poorest social layers, are performed at the hospital.

Moroccan tourism minister: managing juncture without affecting structural projects

Moroccan tourism minister, Adil Douiri, stressed on Monday that his department will be managing present hardships without loosing sight of the major structural projects, underway or projected in Morocco. The official who was talking at a lunch-debate organized by the American chamber of commerce in Morocco said his department will be pursuing the strategy designed to attract 10 million tourists by 2010. Concerning the present juncture, he said while the gulf war had limited impact on trade with a 13% drop last April in the number of nights spent at Moroccan hotels, the terrorist attacks in Casablanca have yielded a drop of 8%. The French market was not affected but the number of British tourists dropped by 11% and other foreigners' visit regressed by 25 to 50%. Despite this situation, Douiri was undeterred on the implementation of the 2003 plan as new resort stations were launched and a series of conventions signed with Moroccan and foreign investors to build or revamp hotels. He said the "structural projects" include accommodation trebling, training, equating accommodation capacity with air transport offer, improving investments environment and close partnership between the state and private operators. Douiri cited the creation of 10,000 new beds in 2003, the project to liberalize the air space, the creation of the regional tourism councils and new promotion campaigns as successful actions of his department. Douiri said Morocco wants to attract high-standard tourists, adding that 70% of visitors who chose Morocco for their holidays go to rated hotels and spend an average 800 Euros per person.

Morocco will open as of July 07 a toll-free free phone number, ("212) 080 002 828, for people seeking information on religious issues. Ulema (Islam scholars) will receive calls and answer religion-related questions.  The department of Habous (endowments) and Islamic affairs says the hot-line will be available around the year from 7 p.m to 8 p.m, except in August, and on Saturdays and Sundays.

The "Month of Arab Cinema" started Wednesday in Rabat, part of activities scheduled for the Moroccan capital city that was proclaimed Arab cultural capital for 2003. Moroccan culture minister, Mohammed Achaari, who opened the event, in presence of Syrian peer, Najwa Kassab, said the event is held in response to pressing requests from Moroccan movie makers who have continuously been urging for "an image that reflects our true feelings, which Arab cinema alone can portray."

The minister underscored the modernization efforts exerted by Arab cinema professionals, recalling its influence that expanded to all artistic areas.

 http://www.arabicnews.com/ansub/Daily/Day/030704/2003070416.html

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Morocco uses regulatory power to direct private phone operator to meet GSM market needs

The government is projecting to propose fines against phone companies that do not invest 2% of their turnover to extend the GSM network to remote areas, it was officially announced here on Wednesday. Industry, trade and telecom minister, Rachid Talbi El Alami, told legislators the fine will be paid to the Moroccan telecom regulation agency (ANRT) and earmarked for setting in place the needed equipment to extend the phone network to remote areas. Under the Moroccan law, the two mobile phone operators (Maroc-Telecom and Meditel) have to supply the needed equipment to the regions that are not reached by the GSM network.

Three quarters (75%) of higher education scholarships applications have been satisfied for the 2002-2003 academic year, minister of higher education and scientific research, Khalid Alioua, said Wednesday. Speaking in question time at the House of Representatives, the minister said his department had earmarked 528 million dirhams (some $53 million) for higher education scholarships.  All applicants from southern Morocco received a scholarship, he went on. Alioua added next year will be the outset for the first phase of pedagogic reforms, aimed at adapting curricula to the job market.

RABAT, July 04 - World soccer stars played on Thursday the Moroccan Olympic team in Rabat, with receipts going to "L'heure Joyeuse" association that takes care of homeless children and other children living in a precarious situation.  Soccer stars from the best European championships made the trip to Morocco, for the lofty cause of helping children, in an admirable gesture of solidarity and generosity.  The public was charmed by the technical prowess of the all-star team that also included Morocco-born French humorist, Jamal Debbouz, who scored one of the three goals in the Moroccan Olympic team's net. The Moroccans netted, on their part, five goals. Soccer stars were joined in this humanitarian action by French showbiz stars.  Heure Joyeuse is an association that offers shelter to homeless children and tries to integrate them within their own families or relatives. During their stay in the association's centers, the children get schooling or professional training.

The match receipts will be used to cover management expenses of a center to be built in Casablanca's poor district of Sidi Moumen. The all-star team comprised such renowned soccer figures who play with the French world champion team as Lilian Thurman, Robert Pires, Youri Djorkaef and captain Laurent Blanc, as well as Willy Sagnol, Gibril Cisse, Lionel Charbonnier, Louis Ferandes, Saifi Rafik and Zebina (Italy), coached by French Arsene Wegner who coaches the British first league. MAP 2003

With the MED-IT meeting held on June 26-27 at Casablanca's Technopark, there was an opportunity for Morocco's IT sector professionals to network, discuss, and air their grievances. There is also much to talk about, as - depending on the perspective - Morocco's IT sector can be seen as a regional leader or as a regional basket case. As one illustration, leading IT multinationals like Microsoft and Hewlett Packard have chosen the country as their regional headquarters, yet only an estimated 0.2% of the population is subscribed to the internet.  The IT sector has progressed since the information technology revolution first arrived on Morocco's shores in the mid-1990s. According to World Bank statistics, the number of personal computers evolved from 3.2 per thousand in 1995 to 12.3 per thousand in 2000, while the number of internet users evolved from 1000 to 200 000 in the same period.  The number of ISPs and cybercafés has exploded - from 20 ISPs and 50 cybercafés in 1996 to 1924 ISPs in 2001 (the latter figure confuses the two categories, as ISPs and cybercafés undergo similar registration processes). Current estimates of the number of internet users vary from 300 000 (the Arab Advisors Group) to 600 000 (APEBI, the Moroccan IT professionals' association), with the vast majority composed of cybercafé clients, while there are approximately 300 000 household PCs.  

This raises the question of the low internet penetration rate, in particular the fact that only around 60 000 private and business internet subscriptions exist, shared by the two companies providing internet access - Maroc Telecom (34 000 subscriptions) and Wanadoo (an estimated 20 / 30 000 subscriptions). This low amount seems to jar with government targets of 10m internet users by 2010. Internet performance seems particularly modest when one compares it with the growth of the mobile telephone market, which following telecoms deregulation in 1997 has exploded from 170 000 users in 1999 to around 6m in 2003.  A common refrain amongst professionals at the MED-IT meeting was that both costs and content are preventing higher internet growth. In words to warm the heart of any freemarketeer, professionals complain that Maroc Telecom's exclusive position in providing internet access is preventing significant cost reductions - the cost of connection for one megabit is 20 times that in Europe (EUR3300 compared to EUR150), while the ADSL service, introduced this year, costs EUR50, compared to roughly EUR15 in France. In particular the potential of post-paid subscriptions, crucial for budget-conscious households (wary of internet-crazed adolescents), remains underexploited, and this despite the PC-Internet package offers from Maroc Telecom and Wanadoo. 

The internet market thus awaits the arrival of a second fixed line operator to see competition work its magic on connection costs. Unfortunately today's depressed global telecoms market is unlikely to see significant offers from foreign corporations in the short-term, give the large start-up investments implied. Content is the second bone of contention. There are a number of local websites, but in the business community websites are usually seen as a matter of prestige rather than a potential tool for e-commerce. Again the discourse is at odds with the reality on the ground. A more structural problem here is one of language - only half of Morocco's population is literate, and the majority of them are literate in Arabic. However, according to statistics provided by Global Reach (see http://www.global-reach.biz ) there are less Arabic internet users globally than Dutch (or Malay) ones. In addition, computers in Morocco usually use English or French keyboards with a French language interface. As a result, the problems of 'democratising' computer use run into the problematic of language elitism, especially in a country where French is really only the language of the upper middle and higher income group. Even bringing in Arabic interfaces is not without its problems, given that the popular vernacular, darija, differs widely from classic Arabic, and that is not taking into consideration Berber, a completely separate language spoken by a large share of the population, especially in rural areas. 

The progress of the IT sector is thus intimately linked with education. The vocational training institution, OFPPT, in conjunction with APEBI, is developing IT training (with 3500 stagiaires formed per year), and intends to create a centre devoted to IT in 2004. Universities are all now interconnected, while APEBI is developing a new IT research partnership with Al Ahrawane University in Ifrane. Demand for IT engineers is strong in the public sector, as well as amongst IT multinationals using Morocco as a regional hub. Analysts believe however that the level of awareness of IT skills' utility remains low amongst SMEs. Seeing as the latter comprise the essential fabric of Morocco's private sector, showing IT's benefits remains a paramount concern.

On the administrative level, the independent regulator, the ANRT, has a generally favourable reputation amongst professionals within the IT and telecoms world (although some gripes are made about supervising Maroc Telecom's pricing and marketing practices). Perhaps the main problem for the ANRT is that it receives ex ante rather than ex post financing, thereby limiting its supervisory potential. Financing is however set to be improved for start ups through the use of fonds de garanties, state-backed loans which will allow greater banking investment to the IT sector by reducing the risks attached. A last crucial problem is the government's confused oversight. The IT sector's development falls under the mandate of the Ministry of Industry, Commerce, and Telecommunications. A ministry with so many fields of interest is hardly able to devote enough attention to the IT sector. This is perhaps a cruel assessment, since the Prime Minister also has an office devoted especially to information and communications technologies. But the overlapping and diffused mandates do lead to an inflation of words to the detriment of effective action. In the meantime, IT will grow slowly but surely in Morocco. Market  potential, a strategic position and an adequate regulatory environment should see Morocco continue to attract foreign corporations. It remains to be seen whether the economy can find an appropriate niche in the global economy, and create sufficient backward linkages from foreign investment for employment creation. In the interim, the peculiarly complimentary functioning of formal with informal that characterises Morocco's economy, epitomised by Casablanca's renowned Darb el Ghalif market, will persist - although the latter's ability to provide cheap pirate CDs may be reduced by the forthcoming US free trade agreement. © Oxford Business Group 2003

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