FOM Newsletter June 2003
Morocco Week in Review 
June 28 2003

Only 1,000 heart cases benefit annually from surgical care in Morocco, chairman of Grand CÏur (Great Heart) Association, Mohammed Agherbi, said on Thursday. Agherbi told a seminar organized by the association that the majority of heart patients don't benefit from medical care because of very high costs, underlining that the average cost of a heart surgery may reach 80,000 DHs (US $8,000) and that only 15 percent of the population has a medical coverage. Out the 3,500 babies born each year with a heart malformation condition, 1,000 cases require a surgery, he went on, adding that 25 percent of deaths in Morocco are due to heart diseases. Created two years ago in Rabat, Grand CÏur Association seeks to provide medical care to needy heart patients, reintegrate the patients who undergo a surgery in their social or professional milieu and organize information campaigns.

WHO earmarks us $30.000 micro-loans to finance projects in Sale

The World Health Organization (WHO) allocated to Rabat's twin city of Sale micro-loans worth US$ 30,000 to finance socio-economic projects. The loan was granted under a cooperation agreement signed Thursday by the governor of Sal?, the health ministry and WHO. Nearly 80 per cent of the amount will go to funding job generating projects and 20 per cent to social and cultural activities. The agreement is part of the WHO's "basic development needs" program meant to alleviate health problems. The agreement binds the Sal? province to reinforce cooperation and partnership between various sectors, external services and NGOs active in local development. In addition, it undertakes to improve the populations living conditions and involve governmental sectors in sustainable development.

FTA with US, an Option for Morocco's Development Drive (Official)

SHOUNCH, Jordan, June 23 - Morocco perceives the free trade accord (FTA) it is currently negotiating with the USA, from a perspective of development and not from a sheer commercial vision, the Moroccan Delegate Minister for Foreign Affairs and Cooperation said. Morocco is keen on reaching a balanced accord with the USA, serving the interests of both countries, Taieb Fassi Fihri, who is also Morocco's chief negotiator with the USA, told MAP news agency. Morocco and the USA will hold a new round of talks on the projected FTA next July in Washington. The two parties intend to materialize the agreement by year end, which will make of Morocco the sixth country in the world and the second in the Arab region to have such a covenant with Washington. According to Fihri, the future FTA will take into account the difference in development levels between the two partners. Morocco's concerns, particularly regarding the key sector of agriculture will also be heeded, he said. Agriculture is a backbone of Morocco's economy employment half of the country's 10-million workforce and contributes at least 17 percent to the national GDP. Fassi Fihri represented Morocco in the World Economic Forum, held in Jordan. © MAP 2003

SHOUNCH, Jordan, June 23 - US Trade Representative, Robert Zoellick, on Monday lauded the progress scored by Morocco towards more economic and social development. The US top trade official, who was speaking at a meeting part of the World Economic Forum held in the Jordanian Dead Sea resort of Shounch, praised the reforms implemented by Morocco, particularly the liberalization of the telecom sector and the easing of investment procedures. Zoellick noted that Morocco and the USA will sign at the end of the year a free trade accord (FTA). After the conclusion of this accord, countries of the Maghreb could conclude similar accord with Morocco to benefit from advantages granted by the USA to Morocco. Morocco and the USA will hold a new round of talks on the projected FTA next July in Washington. The two parties intend to materialize the agreement by year end, which will make Morocco the sixth country in the world and thesecond in the Arab region to have such a covenant with Washington. Jordan which already signed an FTA with the USA will also sign similar accords with countries of the Middle East, said Zoellick. MAP 2003

http://www.map.co.ma/mapeng/eng.htm 

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RABAT, June 26 - Moroccan education and youth minister, Habib El Malki, announced on Wednesday that teaching the Berber language will start in the coming 2003-2004 school year. The official told the question-time at the house of representatives, integrating Berber language learning in Moroccan schools will be effected as part of a gradual scheme jointly-developed by the education ministry and the Royal Institute of the Amazigh Culture (IRCAM), set up in October 2001. The decision, he went on, was made in 2001 in conformity with the sovereign's directives contained in two speeches he delivered in July and October 2001. In parallel to teaching the three dialects of Berber (Tachlhit, Tamazight and Tarifit), Berber teachers' instructors will be trained and starting from the coming school year, manuals will be distributed for free in the first year of primary education. In a previous statement, the minister had said that a total of 1,000 Berber teachers will be appointed this year with plans to generalize the subject nationwide by 2010. Teaching Berber, one of the components of the Moroccan identity, is part of the provisions of the national charter of education and training. © MAP 2003

RABAT, June 26 - The European Investment Bank (EIB) extended Morocco a loan of 140 million DH (around 13.5 million Euros) to finance the 2nd phase of a ports infrastructure program. The program, worth 280 million DH, consists of rebuilding, consolidating and upgrading basic facilities in the ports of Tangiers, El Jadida, Essaouira, Larache and Sidi Ifni. This is the third EIB loan to similar ports projects. In 1999, it contributed 320 million DH (29.6 million Euro) to financing the first phase of the "Ports of Morocco" program and 320 million DH (US$ 27.7 million Euro) to a similar program dubbed "ODEP ports equipment". The EIB funds extended to Morocco since 1978 has exceeded 11.7 billion DH (1.08 billion Euros) to support investments in various development sectors such as transports, agriculture, industry, energy, telecommunications, drinking water supply, sanitation, and ecology, said Moroccan finance and privatization, Fathallah Oualalou, who signed the loan agreement with the EIB vice-president, Philipe de Fontaine Vive Curtaz. MAP 2003

Marrakech will host this June 28-30 the world women summit where more than 600 women will exchange and share experiences in business and define future strategies. Various trade missions of women entrepreneurs and more than 40 women ministers from nearly 80 countries are expected to join the summit, illustrating the proactive role that the Summit fosters regarding women and the global market. The encounter, held for the first time in an Arab state, will focus on accelerating women's economic development with an emphasis on cross-border business alliances. It is the vehicle for the formation of national and regional networks, for successful business initiatives and for the sheer exchange of ideas and practices that have energized women participating in the global market. The summit's program includes a forum on economic development for participants from Arab states, a round table for women ministers and workshops on women's role in economic development and business opportunities in Morocco. From workshops on strategic networking, the value of exporting, growing micro-enterprises into mainstream business through trade, to sessions on strengthening women's business associations, and learning how to do business online, the summit will celebrate women's leadership worldwide.

Morocco, which imports 97% of its energy needs, possesses important but untapped potentials in renewable energy, including a solar radiation estimated at 5Kwh/M2/Day, a wind potential of 6,000 MW and a forest wealth of 9 million hectares, director general of the renewable energies development center, Abdelhanine Benallou, said here on Friday. Benallou told a seminar studying the importance of renewable energies, Morocco has drawn up a strategic development plan to diversify supply resources, use national sustainable sources, preserve natural resources and protect environment. The program, he noted, plans to increase the contribution of renewable energies in national energy consumption from a present 0,24 percent to 10 percent by 2011, and reduce energy reliance on foreign markets from 97 percent to 80 percent by 2020. According to the executive, achieving this objective will enable to attract investments estimated at US $190 million in 2011 and generate more than 11,500 jobs, particularly in rural areas. The two-day features debates on the sector's assets and constraints and a round table on the role of the media in developing renewable energies in Morocco.

Jun 25, 2003 (Al-Bawaba via COMTEX) -- By expanding its multilateral commitments in the services sector, which account for 60 percent of real gross domestic product (GDP), Morocco could reinforce the predictability of its trade regime, make its economy more attractive for foreign capital, and consolidate reforms in areas such as tourism and others in which the country has comparative advantages, said a World Trade Organization (WTO) report. The report also says that liberalization of the agricultural sector and simplification of customs tariffs would improve economic efficiency and enhance Morocco's adherence to the principles of the WTO. Such reforms could include the abolition of variable duties and the reduction of the number and levels of tariff rates. This would somewhat simplify Morocco's trade regime, further complicated by membership of several overlapping trade agreements. A relatively diversified economy and sound macroeconomic policy have helped Morocco to contain the negative effects of recurrent droughts and have contributed to the stabilization of its currency, according to a report on the trade policies and practices of Morocco released June 18 by the WTO Secretariat.  The WTO report, along with the policy statement by the Government of Morocco, served as a basis for the third Trade Policy Review (TPR) of Morocco by the Trade Policy Review Body of the WTO from June 16-18. - (menareport.com) By Mena Report Reporters (C) 2003 Albawaba.com, All rights reserved. 

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The volume of investments in Morocco in the first quarter of 2003 reached nearly US $740 million, 7.4 billion dirhams, that is the triple of the amount registered last year. The figure was disclosed by delegate minister in charge of economic and general affairs and economy upgrading Abderazzak El Mossadeq, in an interview in Moroccan TV channel TVM.  These investments will generate 9,000 jobs, he said, adding US $552.000-worth projects were approved by the governmental investment commission which will create about 5,500 jobs. The amount includes 20 small and medium projects, half of which will be partly funded by Hassan II fund for economic and social development, he said, adding that there are other important projects in industry, electronics and scientific research. He noted that a large project will be implemented and will employ 500 engineers which is an "irrefutable proof that foreign engineers trust Morocco's cadres, particularly in scientific research."

RABAT, June 23 (Reuters) - Morocco has revised down its economic growth for 2002 to 3.2 percent from 4.5 percent, a senior government source said on Monday. "The official figure for 2002 central bank report is 3.2 percent," the official, who declined to be named, told Reuters. The central bank, Bank al-Maghrib, is due to present its 2002 report next month to King Mohammed, the official added. He said the state Statistics Directorate's analytical study did not manage to reach the 4.5 percent previously announced by the finance ministry. "At one stage, the study showed a 2.8 percent growth figure. But the ministry rejected it," the official added. Finance ministry officials were not immediately available for comment. The North African country, of which the gross domestic product is estimated at some $41 billion, is set to post 5.5 percent growth in 2003, Finance Minister Fathallah Oualalou told Reuters after May 16 suicide bombings in Casablanca which killed 43 people. The attacks would have no impact on the country's economy, which relies heavily on agriculture, tourism and handicrafts, he added. Early forecast for GDP growth in 2003 was at 6.5 percent. To make substantial progress in cutting poverty and unemployment, Morocco needs a minimum of 6-7 percent annual growth. ((Reporting by Souhail Karam; Reuters Messaging souhail.karam.reuters.com@reuters.net, email souhail.karam@reuters.com: Rabat newsroom tel +212 37 726518))

RABAT, June 25 (Reuters) - Morocco said it had cut its estimate for GDP growth in 2002 to 3.2 percent but added that a 5.5 percent growth target for 2003 was now within reach, officials said on Wednesday. Investors and economists are worried that recent suicide bombings in Casablanca would deal a lethal blow to an economy that has already been struggling to recover from external shocks such as the September 11, 2001 attacks on the United States and the war on Iraq. The Moroccan economy relies heavily on tourism for hard currency entries and on the fortunes of the European Union economy, a market for two-thirds of its exports.

Prime Minister Driss Jettou's office confirmed in a statement a Reuters report which quoted on Monday a senior government source as saying that the 2002 GDP growth rate was slashed by almost a third. It attributed the cut mainly to "a relative fall-off in tourism, following the events of September 11, 2001, and by the impact on the oil refining industry of the disaster at Samir in 2002." The government's previous estimate for GDP growth in 2002 was 4.5 percent. GDP growth in 2001 was at 6.5 percent. Samir's refinery at Mohammedia was ravaged by a fire in late November. By April it was back operating at 60 percent of its 150,000 barrels per day capacity. It is expected to return to full operative capacity next month. Business daily L'Economiste attributed in its Wednesday's edition the downward revision to a "clash" between the Finance Ministry and the Planning department. The Finance Ministry has set a 4.5 percent figure while the planning department had 3.2 percent. "The central bank is basing its 2002 report on the planning department's figures," the newspaper said. Finance Minister Fathallah Oualalou has said that May 16 suicide bombings in Casablanca, which killed 43 people, would have no impact on the economy which he said would rise 5.5 percent in 2003. "The 5.5 percent is now an easily reachable target for 2003," Mohammed Tawfik Mouline, head of the Finance Ministry's Studies and Financial Forecasts Directorate (DPEG), told Reuters when asked if the cut in 2002 GDP growth would impact the early 5.5 percent forecast for 2003. "We base our 2004 budget on 5.5 percent growth in 2003. It will be reached thanks to the positive agricultural campaign and the fallout of the industrial talks which will hike the wage bill and boost consumption," Mouline added. Forecast for GDP growth in 2003 before the attacks was at 6.5 percent. The North African country, of which the gross domestic product is estimated at some $41 billion, needs a minimum of 6 to 7 percent annual growth to make substantial progress in cutting poverty and unemployment. ((Reporting by Souhail Karam; Reuters Messaging souhail.karam.reuters.com@reuters.net, email souhail.karam@reuters.com: Rabat newsroom tel +212 37 726518))

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Morocco submitted to the Arab standing commission of human rights' meeting in Cairo, a set of proposals to update the Arab human rights charter and adapt it to ongoing mutations worldwide. The Moroccan memo finds the present charter to be non-adapted to the evolution of human rights and of mechanisms of human rights protection. It calls for the need to include in the Arab charter, in a clear manner, the need for the State to secure famil and women protection and to respect women's rights, noting that the present charter merely bans gender discrimination. The new text should also provide for the respect of environment, democracy principles, political pluralism, and the rights of minorities. The proposals were submitted to the Arab standing commission of human rights that is being attended by representatives of Arab governments and human rights-advocacy organizations.

The chamber of advisors (upper parliamentary chamber) unanimously adopted this Monday the labor law, regulating relations between employers and employees. The law still needs to go through the House of Representatives. Moroccan minister of labor, social affairs and solidarity, Mustapha Mansouri, explained that the draft labor law is designed to be a strong signal to foreign investors, as part of ongoing efforts to pass major legal texts such as the trade law, the creation of trade courts and the investments law.  Mansouri told MAP, the draft law, adopted last week by the justice, legislation, and human rights committee at the chamber of advisors (upper parliamentary chamber) comes to crown "a package of legal reforms meant to upgrade the Moroccan economy and generate jobs by stimulating national and foreign investments." He stressed that the draft law, designed afterintensive dialogue between the prime minister and social actors (trade unions and enterprise associations), is considered as a breakthrough to which several ministerial departments contributed. The law drafting process started in the 70's and since then several provisions were referred to the parliament in 1993, but it was suddenly suspended and the text was withdrawn from the parliament, he went on, before being tabled again at the chamber of advisors but social partners failed to reach understanding, which resulted once again in a three-year freezing. Mansouri explained that concerning major bones of contention -labor flexibility, the employer's rights to fire employees and trade union freedoms- were settled by adopting principles in force in developed countries. He argued that debates have helped reach a balanced text that enjoys the adherence of all sides while it was also agreed to start dialogue on a set of other issues, mainly retirement, increasing the minimum salary by 10%, compensation on job loss and increasing salaries that were not raised in the last years. He announced that the draft labor law will be one of the most important texts to be adopted in the present parliamentary session and will bring a strong contribution to upgrading economy and attracting investments. He urged enterprises and trade unions to become full partners as challenges faced by Morocco are no longer domestic ones but foreign ones, resulting from liberalization and market opening.

The general prosecutor at the court of appeal of Rabat, Lahcen Laoufi, announced that eight persons were arrested for advocating terrorism, obtaining foreign funds to be used in terrorist acts, forging passports and hiding information that could have helped in the ongoing probe on last May 16 terrorist attacks in Casablanca. The magistrate said the probe started when "Al Hayate Al Maghribya," which is published in Oujda (eastern Morocco), run a story by Zakarya Boughrara. The same story was re-published by "Asharq" daily, which also appears in Oujda. The group of eight individuals who were arrested include the article's author, Zakarya Boughrara, who, the investigation found out, received funds from foreign sources, connected to "Al-Qaeeda" network to finance followers of "Salafya Jihadia," an organization suspected of being behind the Casablanca attacks. It was also established that the funds were used to finance terrorist acts. He confessed collusion with a number of persons to forge passports that would be used by some persons to go to England to meet some members of the "Salafya Jihadia" group. He also says he was the author of a story that was published by the two papers and that advocated ideas of the said group that called for mobilizing persons and means to conduct suicide-operations that would sow disorder and terror. As for Mustapha Qachnini who works for "Al Hayat Al Maghribya," he also confessed publishing Zakarya Boughrara's article although it contained praise of the dangerous criminal acts perpetrated by the "Salafya Jihadia" elements. He also published an interview with a man named Mohamed Fizazi, one of the theoreticians of "Salafya Jihadia, who praised the Casablanca terrorist attacks. Two other journalists, Mohamed Lhard and Abdelmajid Ben Tahar, working for "Asharq" paper, were also arrested for the same reasons. The group of persons who were arrested -all born in Morocco's eastern region- include 3 women.

Morocco unveiled here on Monday a comprehensive plan to modernize public administration through several reforms. This was announced by minister in charge of modernization of public sectors, Najib Zerouali Ouariti, on the United Nations' civil service day. According to Zerouali, the reforms will deal with decentralization, human resources qualification, respect of ethics in public services, procedures simplification and the adoption of the e-administration. For his part, coordinator of the UN system in Morocco, Emanuel Dierckx De Casterle, who read out a message of the UN Secretary General, underlined the necessity of initiatives that aim to create institutions, highlight human resources, improve the financial management and benefit of information technology. http://www.arabicnews.com/ansub/Daily/Day/030624/2003062417.html

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The Casablanca bourse has become the focus of renewed attention in recent weeks, after a surprisingly strong performance brought optimism back to equity market players. Meanwhile, the government has embarked on a number of reforms which are set to bring the market up to international standards. However, for now, the bond market remains the most important capital market intermediary, although a continued decline in interest rates has raised the prospect of financial migration.

Equity performance was particularly robust in the first weeks of June, with the MASI all shares index rising from 3355.59 on June 2 to 3591.25 on June 9 - in other words a rise of 7.02% in the space of one week (the MADEX Moroccan most active shares index rose by 8.27% in the same period, breaking the symbolic 3000 point mark on June 9). This performance tailed off slightly in the second week of the month, as market liquidity tightened and participants stopped to take stock of the large surge and cash in on their gains. But the enthusiasm was not brought to a halt completely, despite worries about the lack of new offers. A 1.8% growth in the MASI index over the week of June 16-20 saw it climb within reach of the previous high - 3579.85 - at end of trading on June 20. This represents a 20.11% year-on-year increase. So where does this renewed optimism come from? Just a few weeks ago it was common for analysts to dismiss the equity market as structurally flawed, an irrelevance in need of a drastic overhaul. While such sentiment can still be found (the main criticism being the limited amount of players preventing a lack of depth in the market), but the re-found bullishness is noticeable amongst analysts. Cyclical factors cited include the announcement of large public and public/private sector projects (for example in social housing), the Régie des Tabacs privatisation, reductions in energy consumption tax and in interest rates. All these factors have given the investment environment an important boost.

The government decision to implement equity market reforms comes at a propitious moment therefore. At a cabinet meeting on Friday June 13, six new reform projects were announced, aimed essentially at renovating the bourse's regulatory environment. The Conseil Déontologique des Valeurs Mobilières (CDVM - whose function is roughly equivalent to the SEC in the USA) is to have its mandate strengthened; a central depository is to be created; IPOs are set to undergo stricter transparency requirements. At the same time, it remains common knowledge that the equity market remains the junior partner to the bond market in the overall capital market. Treasury bills dominate, and the mutual funds industry relies overwhelmingly on fixed income assets. The government strategy of domestic borrowing added to bond market reforms implemented in 2001 has resulted in the bond market developing into one of the major financial instruments in the economy. Corporate bonds represent around 15% of total issues, and have grown strongly due to a number of factors: growing spreads between bank loan rates and T-bills, saturation in bank lending capacity for some large corporations, and market liquidity. Falling interest rates, which some trace to the aforementioned privatisation, saw the interbank money market rate reach a low of 2.033 on Thursday June 19, before slipping back to 2.901 over the weekend. 

Excess liquidity has been the primary structural feature underlying this trend, as the financial sector in general, and the banking sector in particular, have been struggling to absorb privatisation revenue from the 35% sale of Maroc Telecom to Vivendi, and the sale of the 2nd GSM license to Telefonica. The underlying privatisation effect is set to continue with the sale of RDT, as well as the planned sale of the strategic 16% stake of Maroc Telecom to Vivendi Universal, which was announced on June 20, with negotiations set to begin in September. Excess liquidity is also propelled by the large capital account inflows from expatriate Moroccans (MREs), which reached MAD35.2bn in 2002 (approximately EUR3.5bn - down 4.3% compared to 2001, but still 52% better than the five year average. The bond market has therefore been the main beneficiary up to now. However, the corporate bond market looks set to take up the slack from more seldom treasury emissions. Firstly, government finances are in better health now and domestic financing is less urgent; secondly the Central Bank is set to launch a eurobond issue imminently, after international ratings agencies reaffirmed their faith in the country's sovereign risk. Issues by large local groups like Eqdom in 2003 are helping to keep market liquidity. With returns of around 4.5% on investments, the local bond market remains a popular source of financing, but falls in the underlying rate might cause a financial migration elsewhere - to the equity or real estate market. For the moment it seems as though the latter is the preferred alternative destination for financial placements - the Moroccan real estate market has been highly speculative, fed by government projects and fiscal incentives. But the market reforms should help rehabilitate the equity market and establish equilibrium and complementarity in the capital markets. It is perhaps too soon to tell, but the initial signs are hopeful. © Oxford Business Group 2003

RABAT, June 25 (Reuters) - The Moroccan government confirmed that it has cut its estimate for GDP growth in 2002 to 3.2 percent, after tourism fell off following September 11, 2001, and a fire hit production at the country's sole oil refinery last November. The government's previous estimate for GDP growth in 2002 was 4.5 percent. A statement released by the office of Prime Minister Driss Jettou late Tuesday said the downward revision "is explained mainly by a relative fall-off in tourism, following the events of September 11, 2001, and by the impact on the oil refining industry of the disaster at Samir in 2002." Samir's refinery at Mohammedia was ravaged by a fire in late November. By April it was back operating at 60 percent of its 150,000 bpd capacity. The estimate for this year's GDP growth is around 5.5 percent, the statement said. Morocco's GDP growth in 2001 was at 6.5 percent. ((Reporting by Eileen Byrne; Reuters Messaging eileen .byrne.reuters.com@reuters.net: Rabat newsroom tel +212 37 726518)) 

http://www.zawya.com/Story.cfm?id=1056534582nL25607083&section=Countries&page=Morocco&channel=All%20Morocco%20News&objectid=22403786-8F1A-11D4-867000D0B74A0D7C 

Morocco's electricity sector liberalization for 2005

Morocco will maintain the liberalization of the electricity sector for 2005, director general of the National Office of Electricity (ONE), Ahmed Nakkouch said. In an interview published Tuesday by the daily in French L'Economiste, the executive said that on the basis of studies conducted recently, it was decided to uphold the liberalization agenda and introduce improvements to the initial scheme, such as giving customers the choice between two markets, a regulated and a free one. ONE will carry on its mission as a public service utility and market regulator, he added. The regulated and free suppliers can complement each other, the objective being to enhance the system and encourage private investments. The question is whether to entrust relevant administrations with the mission or create a regulation agency, he stressed. The regulated market will remain protected and guaranteed and control systems will be introduced for exchanges to be undertaken in complete transparency and with a regulated pricing system. The office will invest some $80-100 million to renovate the power plant of Mohammedia (near Casablanca), Nakkouch said.

Moroccan minister in charge of housing and urbanism, Toufiq Hjira, urged here on Monday the private sector to invest in housing projects. Speaking at a meeting on unhealthy housing and the promotion of low-cost lodgings, Hjira said his department is determined to implement, in collaboration with the private sector, a new policy of low cost housing based on dialogue.  The new policy, the minister went on, aims to reduce the deficit in housing, underlining that one quarter of the urban population in Morocco lives in unhealthy housing.  The official, who deplored an incompatibility between supply and demand in the housing sector, said the government has taken up the challenge of building 100.000 housing units per year. Hjira announced that the State is gradually withdrawing from its traditional role in housing and will play the role of supervisor.

The mining sector in Morocco achieved in the first quarter of 2003 sales estimated at more than 4.31 billion Dirhams (US $431 million), the mining and energy ministry announced. The sales includes phosphate derived products and other mining processed products. Exports, estimated at over US $333 million, represent 77.4 percent of the turnover. Phosphate and its by-products represent 87 per cent of the exports, the source went on. The overall sales of phosphate reached 5.7 million tons for a value estimated at US $162 million. Morocco exported 2,810 million tons of phosphates for a value of over US $ 92.9 million, that is a drop by 1.1 percent in volume and 18.3 percent in value, compared to the same period of 2002. The production of phosphoric acid reached 688,000 T, that is a 3.5 percent rise compared to the same period last year. The sales of phosphoric acid- entirely for exports- dropped by 16.4 percent in volume (321,000 Tons compared to 384,000 T in 2002), and by 30.2 percent in value (over US 85.1 million compared to US $121 million last year). The production of solid fertilizers increased by 3 percent (675,000 T compared to 655,000 T in 2002). Sales of fertilizer reached 727,000 T for a value of US $114 million, including 637,000 T destined for exports for a value of US $100 million. Exports increased by 30.5 percent in volume and 18.9 percent in value, the source added.

6/26/2003 The labor code, adopted this week by the two parliamentary chambers, will enhance partnership between social actors, labor, social affairs and solidarity minister, Mustapha Mansouri, said on Tuesday. Mansouri told the Moroccan channel "TVM" that the unanimous adoption of the code by the House of Advisers on Monday reflects the consensus between different social actors, especially since the House groups representatives of unions and professionals chambers. Consensus between social actors was the result of social dialogue and the international context requirements of a modern social legislation capable of attracting foreign investments. Competition requires strong, structured and organized enterprises and the solidarity of different operators for a better productivity, he added. The labor code, designed after intensive dialogue between the prime minister and social actors (trade unions and enterprise associations), comes to crown a package of legal reforms meant to upgrade the Moroccan economy and generate jobs by stimulating national and foreign investments.

http://www.arabicnews.com/ansub/Daily/Day/030626/2003062629.html 

RABAT, June 25 (Reuters) - Morocco said it had cut its estimate for GDP growth in 2002 to 3.2 percent but added that a 5.5 percent growth target for 2003 was now within reach, officials said on Wednesday. Investors and economists are worried that recent suicide bombings in Casablanca would deal a lethal blow to an economy that has already been struggling to recover from external shocks such as the September 11, 2001 attacks on the United States and the war on Iraq. The Moroccan economy relies heavily on tourism for hard currency entries and on the fortunes of the European Union economy, a market for two-thirds of its exports. Prime Minister Driss Jettou's office confirmed in a statement a Reuters report which quoted on Monday a senior government source as saying that the 2002 GDP growth rate was slashed by almost a third. It attributed the cut mainly to "a relative fall-off in tourism, following the events of September 11, 2001, and by the impact on the oil refining industry of the disaster at Samir in 2002." The government's previous estimate for GDP growth in 2002 was 4.5 percent. GDP growth in 2001 was at 6.5 percent. Samir's refinery at Mohammedia was ravaged by a fire in late November. By April it was back operating at 60 percent of its 150,000 barrels per day capacity. It is expected to return to full operative capacity next month. Business daily L'Economiste attributed in its Wednesday's edition the downward revision to a "clash" between the Finance Ministry and the Planning department. The Finance Ministry has set a 4.5 percent figure while the planning department had 3.2 percent. "The central bank is basing its 2002 report on the planning department's  figures," the newspaper said. Finance Minister Fathallah Oualalou has said that May 16 suicide bombings in Casablanca, which killed 43 people, would have no impact on the economy which he said would rise 5.5 percent in 2003. "The 5.5 percent is now an easily reachable target for 2003," Mohammed Tawfik Mouline, head of the Finance Ministry's Studies and Financial Forecasts Directorate (DPEG), told Reuters when asked if the cut in 2002 GDP growth would impact the early 5.5 percent forecast for 2003. "We base our 2004 budget on 5.5 percent growth in 2003. It will be reached thanks to the positive agricultural campaign and the fallout of the industrial talks which will hike the wage bill and boost consumption," Mouline added. Forecast for GDP growth in 2003 before the attacks was at 6.5 percent. The North African country, of which the gross domestic product is estimated at some $41 billion, needs a minimum of 6 to 7 percent annual growth to make substantial progress in cutting poverty and unemployment. ((Reporting by Souhail Karam; Reuters Messaging souhail.karam.reuters.com@reuters.net, email souhail.karam@reuters.com: Rabat newsroom tel +212 37 726518))

Participants in the extraordinary ministerial conference of the Least Developed Countries (LDC) called on Wednesday developed countries to support their development efforts and live up to their commitments vis-a-vis LDCs. Foreign ministers or delegates of 49 least developed countries meeting in Rabat, capital of Morocco that chairs the G-77 and China, called developed countries "to increase their contribution to funds destined to the struggle against major diseases," and invited international organizations "to support as a priority the programs of technical cooperation with LDCs." Recalling the commitment made by the International Community at the Doha Ministerial Conference of the WTO (World Trade Organization), the Declaration of Rabat called for addressing the marginalization of LDCs in international trade and assisting them fully integrate into the multilateral trading system. The G77 member states and China were further called to take, within the South-South cooperation, solidarity measures in favor of the LDCs in the fields of trade, finance and technical assistance. An appeal was made to "developed countries to make concrete efforts toward the target of 0.7 percent of gross national product as official development assistance to developing countries."

In the same vein, participants praised Morocco's initiatives in favor of LDCs, notably the cancellation of the debts of African LDCs to the Kingdom and the opening of Morocco's markets to their products without tariffs. At the closing ceremony of the two-day conference, Moroccan foreign affairs and cooperation minister, Mohammed Benaissa, said the "Rabat Declaration" does not only reaffirm the major concerns of LDCs and recall the international community's commitments to them, but also adopted a package of recommendations that are likely to give a new dynamic for the creation of favorable conditions for a genuine economic boost in LDCs. The encounter, that ended on Wednesday, is part of the new dynamic that Morocco, in its capacity of the Group of 77 (G-77), intends to apply to the South-South cooperation and the re-launching of the development of LDCs within an international context marked by globalization and economies' interdependence.

Authors of the terrorist attacks perpetrated last May 16 in Casablanca have "connections with several terrorist organizations abroad and with several financiers of international terrorism," Moroccan Justice Minister, Mohamed Bouzoubaa, said on Thursday. Persons came from abroad where they trained several elements to commit terrorist attacks, Bouzoubaa told Morocco's first TV channel (TVM). According to the minister, terrorism financiers have sent funds from abroad to individuals involved in the Casablanca attacks that claimed 44 victims. Scores of people were arrested in connection with the attacks and over 100 suspects have already appeared before Moroccan courts. Investigation into the attacks are close to an end, said Bouzoubaa, who added that investigations showed that two major groups are involved in the attacks, one led by a Moroccan and the second by French Pierre Robert, arrested recently. Meantime, Hassan Boulaid, a security agent, died Thursday at a Casablanca hospital of injuries sustained in the terrorist attacks that hit Casablanca last May 16. With the death of Boulaid, married and father of a 7-year-old daughter, the death toll of the terrorist attacks reaches 44, including the suicide bombers. He used to work in the Farah hotel, one of the targets of the string of five quasi-simultaneous terrorist attacks perpetrated in Casablanca.

The sales achieved by "Barid Al-Maghrib," Moroccan post authority, reached in 2002 1.09 billion DH (US$ 117.6 million), which is a rise of 2% compared to the figures of 2001. The figures were released by Barid Al-Maghrib general manager during the company's administrative board meeting. He also said the state-owned company's financial results are on the rise. The net profit went up from 130 million DH (US$ 13.9 million) in 2000 to exceed 153 million DH (US$ 16.4 million), but it sustained a 41% drop again in 2002 to stand at 91 million DH (US$ 9.7 million). The general manager explained that this regression was expected as the company embarked on a plan of voluntary departure of employees that implied significant financial loads to pay for compensations. The voluntary departure of 1,000 employees was part of a restructuring scheme started in 2000, he further explained. Barid Al-Maghrib has also diversified its activities over the last two years by launching new products, including a new parcel delivery system, a Geographic Information System, a new savings service and various other new information and technology activities. The post authority is seeking to modernize its management tools, optimize its network and diversify services extended to the public and to enterprises.

RABAT, Morocco, Jun 27, 2003 (AP WorldStream via COMTEX) -- A Frenchman once suspected of plotting nearly simultaneous suicide bombings in Casablanca last month will not be prosecuted over the deadly attacks, officials said Friday.  Pierre Robert, 31, was taken into custody two weeks after the May 16 attacks at five locations in Morocco's largest city. He was the only foreigner apprehended in connection with the bombings that killed 32 bystanders and 12 attackers. However, an investigation by prosecutors later showed that Robert was not directly linked to the Casablanca bombings, officials close to the investigation said on condition of anonymity. Robert is still to face trial for suspected involvement in plotting attacks in the cities of Fez and Tangiers, the officials said. Based on a new anti-terrorism law, Robert is eligible for the death penalty. Another 100 people suspected of direct links to the Casablanca bombings are to be tried by the end of the year, the officials said. The attacks targeted Jewish and European sites and a major hotel. A 32nd victim in the attacks - a hotel security guard - died Thursday of his injuries. Robert is a suspected Islamic militant once presented as the brain behind the Casablanca attacks by Moroccan officials. Moroccan authorities have insisted an international terrorism ring was behind the attacks, but now that Robert is not being charged, all the suspects are Moroccan. Authorities have not officially connected the attacks with al-Qaida, which has claimed responsibility for the bombings. Investigators were probing the possible links between the bombers and extremist groups like Salafia Jihadia, which has been linked to Osama bin Laden's al-Qaida network. The prosecutor's office in the capital, Rabat, said in a statement that Robert converted to Islam in 1990 and moved to the North African kingdom in 1996. He made his living stealing cars in Europe and bringing them to Morocco, the statement said. By NICOLAS MARMIE Associated Press Writer Copyright 2003 Associated Press, All rights reserved

ESSAOUIRA, June 27 - HRH Prince Moulay Rachid, younger brother of HM King Mohammed VI, on Thursday opened the 6th edition of the Gnawa festival. Speaking at the opening ceremony, Morocco's culture minister, Mohamed Achaari, said the Essaouira festival has gained world fame, as a reflection of Morocco's genuine values of tolerance and roots. The Gnawa music is played by the descendants of former slaves originating from Black Africa. Gnaoua, who constituted themselves as brotherhoods through Morocco, are Masters musicians, players of crotales, conspicuous women, mediums and followers. They practise a syncretic rite of possession, where interfere at the same time African and Arab-Berber contributions, during which followers devote themselves to the practice of the dances of possession and trance. This rite of possession that they indicate by the term of "derdeba" proceeds during the night. It is animated by a Master musician accompanied by his troop, by a conspicuous affiliated with the brotherhood of the gnaoua and her assistants. This night ceremony comprises a profane part intended for the entertainment during which there is no trance and a sacred part during which saints and supernatural entities are called upon (mlouk). MAP 2003

http://www.map.co.ma/mapeng/eng.htm 

Moroccan court starts hearing of journalist arrested in connection with Casablanca attacks probe

The court of appeal of Rabat started on Friday the hearing of Mustapha Alaoui, a journalist sued for publishing a communiqu? whereby a group, "Assaika," claims responsibility for last May 16 attacks in Casablanca. Mustapha Alaoui was accompanied during the two-hour hearing by his attorneys. The journalist, who edits and manages the independent Al-Ousbou weekly in Arabic, had been interrogated by the judicial police, before being put in custody in a Sal? jail, near Rabat. The public prosecutor of the Casablanca court of appeal had said in a release that the publication by the Al-Ousbou of the statement, which other publications abstained from circulating, was a violation of the law, especially the anti-terrorism law, enacted on May 29.

http://www.arabicnews.com/ansub/Daily/Day/030621/2003062125.html

Moody's Investors Service has changed to stable from negative the outlook on Morocco's foreign currency country ceiling and local currency government bond rating of the Kingdom of Morocco. The New York-based rating firm explains that the change in the outlook mainly reflects the improvement in the country's public finances. After three years of fiscal deterioration from 1999 to 2001, Morocco's fiscal deficit improved in 2002 due to a stabilization of tax revenues and a fall in the growth rate of fiscal expenditures. In addition, the government's decision last year to limit public sector employment to the number of people leaving for retirement is seen by Moody's as a positive step towards containing structural fiscal expenditures in the future.  Moody's said that the change in outlook also reflects the reduction in Morocco's level of public debt due to the government's active debt management strategy. The agency noted that the largest reduction in the debt-to-GDP ratio took place in 2002 when the country benefited from a GDP growth rate higher than the real rate of interest. In 2003, Moody's expects the GDP growth to remain strong despite last May 16 terrorist attacks in Casablanca. The positive forecast is based primarily on the significant rainfalls in 2002 and 2003, which will ensure strong growth in agricultural output and therefore a strong GDP growth rate, despite the expected fall in tourism revenues. In Moody's opinion, the government resulting from the autumn 2002 parliamentary elections is strongly committed to the implementation of a broad range of reforms in the areas of social policy, governance, and privatization -- as recently demonstrated by the sale of the Regie des Tabacs, Morocco's tobacco monopoly, to Altadis, the French-Spanish tobacco company, for US$ 1.5 billion.

A group of political parties held on Thursday a meeting, at the initiative of the Party for Reform and Development (PRD) to consider a charter to "unify ranks" around the nation's constant values. The PRD secretary general, Abderrahmane El Kohen, said his party's initiative to convene the meeting was spurred by the need to reflect on last May 16 string of five terrorist attacks in Casablanca that killed 43 people and injured scores of others. He said the move also seeks to analyze effects and implications of these acts. He told political leaders representing a wide spectrum of Morocco's political landscape "the dangerous effects of these events that targeted Morocco, its reputation and stability and sought to brake its march toward democracy and development" require from all political parties to shoulder their role in ensuring the welfare of the Moroccan people. For El kohen, political parties need to "harmonize their stances" and "unify their ranks," putting aside minor divergences to collectively confront threats facing the homeland. A "national honor charter" was also mooted by the PRD leader.

Participants asked for some time to study the proposed charter and agreed to hold other meetings to debate items and principles contained in the charter project. Participants included representatives from the "party for justice and development" (PJD), "national popular movement" (MNP), "party for renewal and equity" (PRE), "Environment and Development Party" (PED), "Citizenship and development initiative" (ICD), "Action party" (PA), "Shoura and Istiqlal Party" (PCI), "Party for Progress and Socialism" (PPS), "Constitutional Union" (UC), " National Democrat Party" (PND), "Democratic and Social Movement" (MDS) and "Alliance for Freedoms" (ALD).

Fez sacred music festival É when melodies help transcend religious differences

The Fez festival of world sacred music mission has a prime mission to make of music a means to transcend religious differences, The Festival's President, Mohamed Kabbaj, said. The festival has become a genuine cultural and tourism enterprise and a privileged space for encounters and peaceful co-existence, Kabbaj told a Moroccan daily. The festival is a rendezvous of music and peace loving people without distinction based on religion, he noted, underlining that it groups each year prestigious artists of different cultural, ethnical, and religious backgrounds. The encounters of Fez that take place in parallel with the festival enable participants to exchange experiences and viewpoints, he added. From international echoes about the festival, we conclude that the spirit of Fez has started to take shape, Kabbaj said, underscoring that renowned editors and writers are now inspired to write on the Fez event. Next year's edition of the festival will be held May 28 through June 5, Kabbaj announced.

Morocco was elected this Friday president of the 27th World Congress on Urban Development that closed on Friday its three-day session in Saint Denis (Paris region), held under the patronage of French president, Jacques Chirac. Members of the governing council of this edition, that groups several developed countries and countries of the south unanimously approved Morocco's chairmanship of the forum, said wali (senior governor) of Tetuan, Mohammed Mbarki, who lead the Moroccan delegation. some 600 participants from more than 50 countries also chose the northern Moroccan region of Tangiers-Tetuan as a venue for the first biennial urban development conference. The conference will be preceded by thematic conferences in France, Poland, Japan and Egypt. The core discussions focused on the quality of urban development as opposed to anonymous and standardized urban development patterns resulting from the globalization of exchange and of urban models. The debate also addressed the paradox between development and construction, between managed and spontaneous development and the efficiency of instruments regulating urban development. Participants also discussed public and private sectors approaches in managing sustainable development, new policies of urban development and refurbishing of contemporary cities.The forum further scrutinized the involvement of the private sector in urban  services and the gap between countries of the North and the South in terms of infrastructures and public services. The forum will hold its coming session in Kuala Lumpur (Malaysia).

British tourists are still travelling to Morocco, despite the bomb attacks in Casablanca last month that killed more than 40 people. Foreign Office advice issued after the suicide attacks on May 16, in which 14 terrorists detonated five bombs at hotels and restaurants around the city, stopped short of warning tourists against visiting the country; instead, they were told to be extra vigilant in hotels, restaurants and shopping centres. The recommendations meant that British visitors who had already paid for holidays to Morocco would have lost most of their money if they chose to cancel.  Best of Morocco - a specialist operator based in Seend, Wiltshire - has received only one cancellation. "The British public is not daunted or easily scared off," said its managing director, Chris Lawrence.

The timing of the attacks, at the end of Morocco's winter high season, meant the impact on tourism was less significant than it might have been, he said. Holidaymakers are still keen to visit in the next high season. "Bookings for autumn and winter are greater than last year," he said. Mainstream operators say the same. A spokesman for Panorama Holidays, which takes 16,000 Britons to Morocco each year, said that bookings "suffered a knockback" after the attacks, but are now "regaining momentum". Nearly 150,000 British tourists visited Morocco in 2002, more than half going to the beach resort of Agadir. Report filed: 21/06/2003

CASABLANCA, June 23 (Reuters) - Imprisoned journalist Ali Lmrabet agreed to come off a 47-day hunger strike on Monday, when a cousin of Morocco's King Mohammed intervened, his lawyer said. Lawyer Ahmed Benjelloun said Lmrabet, sentenced on May 21 to four years in prison, would continue to struggle for freedom of expression and against the banning of his two satirical newspapers. The prison sentence, which was trimmed to three years on appeal, was the result of an "iniquitous" and unfair trial, Benjelloun said. Prince Moulay Hicham al-Alaoui, a cousin of King Mohammed, told reporters he had visited Lmrabet in a Rabat hospital on Monday and successfully argued that the cause of freedom of expression "needs him alive, not dead." Lmrabet had been accepting only sugared water in protest at his imprisonment and the banning of his two weeklies, the Arabic-language Doumane and the French-language Demain. He was sentenced under a press law which, as amended in January, retains prison sentences for journalists judged to have undermined the prestige of the monarchy. A medical doctor with knowledge of the case, Jamila Ghandi, said Lmrabet had lost 20-22 kilograms. "Luckily he was overweight," the doctor said. ((Reporting by Souhail Karam, editing by Paul Casciato; Reuters Messaging souhail.karam.reuters.com@reuters.net, email souhail.karam@reuters.com: Rabat newsroom tel +212 37 726518))

RABAT, June 24 - The mining sector in Morocco achieved in the first quarter of 2003 a turnover estimated at more than 4.31 billion Dirhams (US $431 million), the mining and energy ministry announced. The turnover includes phosphate derived products and other mining processed products. Exports, estimated at over US $333 million, represent 77.4 percent of the turnover. Phosphate and its by-products represent 87 percent of the exports, the source went on. The overall sales of phosphate reached 5.7 million tons for a value estimated at US $162 million. Morocco exported 2.8 million tons of phosphates for a value of over US $ 92.9 million, that is a drop by 1.1 percent in volume and 18.3 percent in value, compared to the same period of 2002. The production of phosphoric acid reached 688,000 tons, that is a 3.5 percent rise compared to the same period last year. The sales of phosphoric acid- entirely for exports- dropped by 16.4 percent in volume (321,000 tons compared to 384,000 tons in 2002), and by 30.2 percent in value (over US 85.1 million compared to US $121 million last year). The production of solid fertilizers increased by 3 percent (675,000 T compared to 655,000 T in 2002). Sales of fertilizer reached 727,000 T for a value of US $114 million, including 637,000 tons destined for exports for a value of US $100 million. Exports increased by 30.5 percent in volume and 18.9 percent in value, the source added. © MAP 2003

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