FOM Newsletter May 2003
Morocco Week in Review 
May 17 2003

WASHINGTON, May 17 - The White House is following the evolution of events following the attacks perpetrated Friday evening in Casablanca, CNN reported quoting US officials.  "The White House studies and follows the situation, but it is still too early to make comments," a White House official said, adding details (on the attack) continue to arrive. Another official told the channel the US government voiced concern that "the allies of the United States" are now targeted by terrorist organisations. CNN said the attacks targeted locations linked to countries who were among the closest allies of the United States during the Iraq war. The channel added that the attacks were "shocking for Morocco, a generally peaceful country whose economy depends on tourism."  A first toll by the interior department said 24 people were killed and some 60 were injured in the terrorist attacks.  No US Installation targeted in Casablanca Attacks (State Department) WASHINGTON, May 17 - The US State Department on Friday said that no US installation was targeted in the attacks perpetrated the same day in downtown Casablanca. The statement was made by a spokesman of the State Department, quoted by the Associated Press (AP). At least 20 people were killed in the attacks.

WASHINGTON, May 13 - The United States ambassador to Morocco, Margaret Tutwiler, will "soon" be back to her position in Rabat, US state department spokesman, Philip Becker, announced here on Monday.  Tutwiler was provisionally appointed last month at the Bureau of Reconstruction and Human Assistance in Iraq to monitor the US communication there.  "Tutwiler's mission was temporary from the outset," stressed Becker.

Moroccan FM meets US Congressmen

Moroccan minister of foreign affairs and cooperation, Mohamed Benaissa, Wednesday met several U.S congressmen at the U.S congress. Republican congressman, Philip English, founder member of Morocco-Caucus that groups friends of Morocco in the American congress, and Democrat senator Max Baucus, member of the Senate finance committee were present at the meeting that discussed bilateral relations and international issues of common concern.

IMF: Morocco's economy improved in 2002 despite unfavorable international environment

May 12, 2003 (Al-Bawaba via COMTEX) -- The Executive Board of the International Monetary Fund (IMF) recently concluded the Article IV consultation with Morocco. According to the report, Morocco's economic conditions improved in 2002 despite a less favorable international environment, which was marked by a decline in tourism and external demand.  Real gross domestic product (GDP) growth reached 4.5 percent reflecting a further rise in agricultural output and somewhat higher growth in the nonagricultural sectors.  The nations external position strengthened further with an increase in foreign exchange reserves to the equivalent of 9.4 months of imports, external debt indicators improved markedly while inflation remained subdued.  According the IMF staff team commissioned with carrying out the consultation, Morocco has achieved macroeconomic stability over the last decade with the nation's fixed exchange rate providing an anchor for the economy, a prudent monetary policy, and an adequate fiscal policy.  

Since 1999, however, fiscal policy has been expansionary and the authorities have used part of the privatization receipts to finance increased expenditure. Nevertheless, inflation has remained at levels consistent with that of partner countries, the current account has turned into a surplus, while foreign exchange reserves reached eight months of imports at end 2001, stated the report.  Morocco's growth performance over the last decade has not been strong enough to reduce poverty. Growth has also been volatile because of the impact of recurrent drought conditions on agricultural output. While non-agricultural growth has been relatively steady in recent years and has shown signs of revival, structural rigidities have constrained potential growth. Thus, unemployment has remained high and social indicators still indicate needs for significant improvement. Morocco's fiscal deficit dropped significantly to 4.5 percent of GDP from 5.8 percent of GDP in 2001 and against a budget target of 6.8 percent of GDP. The Government debt-to-GDP ratio continued to decline. Under Article IV of the IMF's Articles of Agreement, the IMF holds bilateral discussions with members every year. A staff team visits the country, collects economic and financial information, and discusses with officials the country's economic developments and policies. On return to headquarters, the staff prepares a report, which forms the basis for discussion by the Executive Board. At the conclusion of the discussion, the Managing Director, as Chairman of the Board, summarizes the views of Executive Directors and is transmitted to the country's authorities. - (menareport.com) By Mena Report Reporters (C) 2003 Albawaba.com, All rights reserved.

Morocco Expects a Growth Rate of over 5.4 percent

Tangier, May 16 - Morocco expects a growth rate of over 5.4 percent in 2003, against 4.5 percent in 2002 and 6.5 percent in 2001, said here on Friday secretary general of the economic forecasts and planning department, Mohamed Bijaad.  Despite international constraints and unfavorable weather, Morocco will succeed in sticking to its five-year plan that aims to achieve a 5 percent growth rate annually, the minister said at the opening of the 18th meeting of the experts' inter-governmental committee of the UN economic commission for North Africa.  Investments posted a rise of 4.6 percent in 2001 and 5.7 percent in 2002, giving impetus to employment indicators and cutting unemployment rate, which dropped from 13.5 percent in 2000 to 13 percent in 2001 and 11.6 percent in 2002. Exports in 2001 and 2002 grew respectively by 1.3 percent and 5.3 percent while imports increased by 2 and 2.5 percent during the same period, which cut trade deficit by 2.6 percent. In 2001, tourism receipts increased by 33 percent whereas remittances of Moroccan expatriates increased by 60 percent, said Bijaad. Despite a 19 percent drop in tourism receipts and a 4.5 percent regression in remittances of Moroccan nationals abroad for the year 2002, the balance of payment registered a surplus of 3 percent in 2001 and 3,7 percent in 2002. The expected growth rate is the result of government reforms to support national economy, alleviate the effects of drought and upgrade domestic products competitiveness, stressed Bijaad. The three-day meeting was attended by official representatives of North African governments, NGOs and UN cooperation bodies.

RABAT, May 12 (Reuters) - Morocco said on Monday its cereals harvest is set to reach 8.0 million tonnes, up 45.5 percent from last year, reducing to almost nil import needs forecast for the next 12 months mainly for soft wheat.  Cereals harvest last year stood at 5.5 million tonnes and the country's annual needs are estimated at 7.0-8.0 million tonnes, half of which is soft wheat. Morocco is among the main cereals-importing countries in the world because of frequent drought and an underdeveloped agricultural system. Cereal-planted areas this year stood at 5.1 million hectares, which gives an average yield of 1.57 tonnes of cereals per hectare against 1.25 tonnes per hectare last year.  An official statement, issued at the end of a ministers meeting chaired by King Mohammed said that "although the harvest is below that of 1996, it represents a considerable rise compared to the previous campaign." mGovernment officials, buoyed by generous rainfalls this year, have often compared the current farming cycle to that of 1996 which saw a record harvest of 9.3 million tonnes. The statement gave no breakdown of the harvest, but soft wheat usually accounts for around half of the total harvest. Soft wheat harvest stood at 2.2 million tonnes last year. An Agriculture Ministry spokesman said a press conference, which was initially due last week and postponed after the birth of a heir to the throne, would "probably be held next week" to shed the light on the results of the farming cycle. 

HIKE IN TARIFFS

In a bid to protect local farmers, which have seen their cereals crop hit by years of drought, the Moroccan government plans to introduce revised customs tariffs on grains imports on June 1. "The problem that we'll face is related to supply. Durum wheat and maize imports are set to continue although at lower scale than last year," a leading industry operator told Reuters. But, because Morocco subsidises flour representing 50 percent of total wheat needs, the combined effect of this import tariffs hike and the high harvest will almost freeze soft wheat imports in the coming 12 months, he said. "Imported (soft) wheat will be out of the competition compared to the local produce as far as prices are concerned," he added.  The agriculture-based Moroccan economy is set to grow at least 6.0 percent this year because of the harvest, from a projected 4.5 percent which had been based on a 5.5 million tonnes forecast for the harvest. Agriculture contributes up to a fifth of Morocco's Gross Domestic Product (GDP) and employs 40 percent of its workforce. As a result, Morocco's economic growth is often subject to weather vagaries. To make substantial progress in the eradication of poverty, which affects 20 percent of the population of 30 million, the country's economy needs to grow at least six to seven percent per year. ((Reporting by Souhail Karam; Editing by Christian Wiessner; Reuters Messaging: souhail.karam.reuters.com@reuters.net; e-mail souhail.karam@reuters.com; +212-37 726518))

Morocco said Tuesday it is determined to boost its economy through spurring investments and launching large-scale development projects. The government has devised a special program to generate jobs, promote transportation, spur investments and improve the population's living conditions, Equipment and Transport Minister, Karim Ghellab, told the upper chamber of the Moroccan parliament. The official spoke of an investment of 32 billion dirhams (nearly US$ 3.2 billion) for development programs and another 20 billion dirhams (US$ two billion) to improve rural population's living conditions. The projects cover the construction of motorways, a large port complex near the northern city of Tangier, sports complexes in Tangiers, Agadir and Marrakesh and a new railway in northern Morocco, he said. Ghellab announced that the government will liberalize this year the ports sector.

The Eaux Minérales d'Oulmès, a subsidiary of Morocco's Holmarcom Group has received authorization to bottle Pepsi-Cola's drinks, marking the official return of Coca-Cola's rival back into the Moroccan market. A date for the official launch in the market has not been set yet.

Women entrepreneurs, ministers and MPS to participate in world summit in Morocco

The world women summit, to be held in Marrakesh next June 28-30, will see the participation of women entrepreneurs as well as ministers and MPS, said on Friday, advisor to King Mohammed VI, Zoulika Nasri Speaking at a press conference to explain preparations for the summit that will be held under the patronage of the Moroccan king, the royal advisor said 500 women from various countries, including 200 from Morocco, will be taking part in the encounter, the first of the kind in an Arab country. Enterprises and non-governmental organizations and associations will also take part in the summit to exchange their experiences. The summit manager, Irene Natividad, stressed that choosing Morocco as a venue for the summit is an acknowledgement of the important economic and political progress achieved by Moroccan women.  In addition to a series of workshops on the use of technology to promote business networking between women from various regions of the globe, the summit will also feature an exhibition of Moroccan women craftsmanship.

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Members of Moroccan women associations discussed in Cairo violence against women and the efforts made by the Moroccan government and the civil society to fight the problem. The issue was raised at a symposium themed "violence against women: aspects and impacts" organized on May 12-13. Members of Moroccan women associations, Nabila Safadi, Fatima Khmissi, and Habiba Laithi, broadly discussed at the symposium types of violence against women in Morocco, and obstacles hampering women from taking part in development efforts and from guaranteeing equal rights and obligations with men.  Women in Morocco suffer different types of violence, physical, sexual, psychological, and family violence (from the husband), said Safadi stressing that women associations and civil society organizations make significant efforts to fight the phenomenon.Several laws, including the personal status code are still a stumbling block to the democratization of relations between men and women despite Morocco's commitment to reinforce the rule of law and respect of human rights, she went on.It is true that the Moroccan constitution consecrates the principle of equality between sexes, but women are still treated as minors by the personal status code, deplored Khmissi and Laithi. Nevertheless, Moroccan associations and women movements managed to raise the awareness of the society as to the dangers of violence against women, and shatter the "taboo" of silence that surrounds the phenomenon.Besides, a national campaign of fighting violence against women was organized in 1998 and another one in 2001 entitled "spring of equality," stressed Moroccan women association members.  The symposium was held by the Arab women's league, the Arab human rights' organization and other regional and international organizations from many Arab states, including Morocco

New Plan to Reform Healthcare Sector in Morocco

The Moroccan government has put forward an ambitious health care reform program that it hopes to implement over the next five years. The details of the plan were outlined by health minister Mohamed Cheikh Biadillah during a presentation he made before the council of government on April 3, 2003. The program comprises 11 major components in which the government will be entitled to intervene within a state healthcare initiative. The authors say their proposed plan was established with the following assumptions in mind: consolidation of what has been achieved thus far, rationalization of resources, and the need to respond to new health care challenges as they arise.  The plan, if passed, would bring badly needed organization in a sector that has traditionally received very little attention, in spite of what many consider it to be major consumer of resources. Within the existing health care infrastructure, there are 254 small and medium-sized medical centers currently in state of cessation. Although these centers are fully equipped, they lack sufficient personnel, including doctors and nurses and have been forced to close their doors in the past years.  

One of the biggest problems facing the health care system has been the distribution of medical professionals, including generalists, specialists and nurses, across the various geographies. The vast majority of medical students select urban centers as their primary career option, thus marginalizing little towns and hamlets. Meanwhile, an investigation launched by unions operating in the health care sector and the Moroccan government found that surgeons employed by public hospitals effectively work only one day per week. This is a situation the health ministry pledges to stop. The 2003-2007 plan calls for the modernization and upgrading of 120 hospitals and the creation of four new cancer treatment centers to be located in Casablanca, Fez, Agadir and Tangier. In the area of financing, the ministry of health is seeking to improve resource management. The government is pushing for standardized contracting procedures to be used by suppliers, generally based on long term contracts, thus avoiding costly bids that have been occurring on the quarterly and even on the monthly basis. Ministry officials say such long-term contracts will insure non-interruption of inventories of drugs and consumables and will have a direct cost savings impact.

To recall, in the 2003 finance law, the state budget raised the amount of spending on drugs by 20% to Dh 50 million. But as spending increased, the government has also demanded the health ministry to put in place savings measures aimed at reducing overall health care cost. The ministry's spending budget was set at Dh 1.6 billion, accounting for 4.5% of total state budget.  Decentralization of drug purchasing is also part of the proposed plan. To achieve "regionalization" of purchasing, the health ministry will use best practices to development regional centers in Casablanca, Rabat, Marrakech and Fez. Such initiative would require the involvement of regional and local governments to insure proper resource management. The private sector will also be encouraged in this plan for the establishment of clinics, and hence attracting some private investment into drugs and equipment purchasing.

RABAT, May.13 - Morocco registered a 68.8 per cent increase in its trade deficit in the first quarter of 2003, following a 9,6 per cent drop of exports and a 9,3 per cent rise of imports, said Morocco's Exchange Office. Exports reached nearly US$ 2.02 billion at the end of March compared to US$ 2.24 billion in the same period last year, that is a 9,6 per cent drop.  The downtrend resulted from a 10,6 per cent decrease of exports (phosphate and derived products excluded) that were valued at US$ 1.71 billion compared to US$ 1.91 billion in the same period last year. In spite of a 3,6 per cent drop in the sales of phosphates and derived products, their share in exports has slightly improved as it was estimated at 15.5 per cent compared to 14.5 per cent at the end of March 2002. Imports reached US$ 3.23 billion at the end of March 2003 compared to US$ 2.95 billion in the corresponding period of last year, i.e. a 9,3 per cent increase. Oil excluded, the total value of imports reached US $3.07 billion compared to US $2.95 billion in the same period of 2002, that's a 13,9  increase. With US$ 162 million at the end of March 2003, crude oil purchases have registered a 37,8 per cent drop.  As to cash flows, remittances of Moroccan nationals abroad have posted a 15,7 per cent increase (US $856 million compared to US $740 million), whereas travel receipts dropped by 4,3 per cent, that is US $451 million at the end of the first quarter of 2002 compared to US $432 million at the same period this year.  Investment and foreign private loans receipts dropped by 16,3 per cent, that is US $106 million compared to US $127 at the end of March 2002.

"In Post-Conflict Days, Moroccans are as welcoming as ever to British tourists," Daily Telegraph

RABAT, May 12 - British paper "The Daily Telegraph" published this weekend a story by Lewis Jones on tourism in Morocco, stressing that the destination is safe for British tourists despite war in Iraq. "Exhausted by war, by the blanket coverage and endless debate, we flew to Morocco. Friends warned we could find ourselves the target of anti-American/anti-British sentiment, but for the next fortnight the events in Iraq barely registered on our radar," Lewis Jones headlined his story. "(...) even when hopelessly lost in the most obscure and fragrant alleys, which we often were, particularly in the vastly bigger medina of Marrakesh - we were never hassled. "Our waiter at dinner on the first night was interested only in whether David Beckham would leave Manchester United for Real Madrid. No one we met subsequently spoke of the war, unless we asked them," Jones wrote. "An informal vox pop, taken at random from cabdrivers, hotel managers, slipper merchants and so on, elicited a unanimous response: "We are fine with everyone - with the Arab countries and with Europe. We do not like Saddam, nor do we approve of this war, but we have no problem. Welcome." "In Marrakesh we headed for the Djemaa El Fna, the city's principal square, dominated by the Koutoubia, the world's most beautiful minaret. It was thronged with tourists dressed in clothes described by the guidebooks as "inappropriate" (shorts, miniskirts). Years ago, they would have been in trouble but in these more enlightened times they wandered unmolested, effortlessly absorbed among the snake-charmers, musicians, storytellers and food stalls," the reporter says. © MAP 2003

For further information please contact: Leanne Blanckenberg or Deema Abu Baker, Promoseven Weber Shandwick Dubai. Tel 04 3210077, Fax 04 3211711, email leanne@promoseven.com  or deema@promoseven.com  © Press Release 2003

Elections timetable readjusted on political parties request, official Morocco, Politics, 5/13/2003

The Moroccan electoral timetable was readjusted on the request of all Moroccan political parties, said Moroccan communication minister, Nabil Benabdellah arguing that between the end of the Iraqi conflict and the (initial date) of communal elections, the time span was a little short. Benabdellah, who is also the government's official spokesman, told "Jeune Afrique L'Intelligent" weekly, published in Paris, political parties needed more time to run their campaigns in order to guarantee a high turnout. To a question on whether Islamist parties' chances were boosted by the war in Iraq, the minister explained that it is normal that throughout the Arab World tensions entailed by the invasion of Iraq will beef up all forms of extremism, stressing that modern trends should be encouraged. "Only democracy and economic development are likely to foil these conservative instincts that advocate the refusal of the other." King Mohammed VI has accepted last month a request by Prime minister, Driss Jettou, to revise the electoral timetable. Local elections will be held next September 12, as part of an electoral process that also includes electing professional chambers on July 25, wage-earners representatives between September 10 and 19, and prefectures and provinces assemblies on September 24. Other polls will be held next October 6 to renew one third of the 270-seat Chamber of Advisors. Members of the Chamber are elected for a nine-year term. One third of the Chamber is renewed every three years.

In an effort to improve mining output, the government of Morocco inaugurated last month the new Compagnie Minière de Touisset headquarters of Sidi-Ahmed in the Tizgha mining center in Kenitra's Jbal Auam. The new site required a Dh 55 million investment and is expected to generate some 100 new jobs.This investment was part of a government policy to accompany the development plan put forward by Compagnie Minière de Touisset or CMT, as part of its 2002-2005 investment program. This includes a production capacity increase from today's 33,000 tons to 45,000 tons in the 2005 horizon. This production capacity initiative calls for the replacement of a treatment plan with modern facilities and equipment, requiring another Dh 50 million investment. The other key project is the improvement of the four-kilometer road that allows access to the site, at a cost of Dh 7 million.  Although these investments are critical to sustain growth, the current worldwide demand for mining products has been sluggish and that is having a direct impact on that industry in Morocco. While actual output there has been flat to declining, depending on the type of product, revenues have been falling at much more rapid pace, and so 2002 was a tough year for the mining sector in Morocco. The sector's revenues were down 3.4% year over year to Dh 19.29 billion, with phosphates generating Dh 6.93 billion. In volume terms, the production of phophate rocks rose by 4.8% to 23.04 million tons. While the volume of phosphate exports increased by 2.8% to 11.1 million tons, export revenue fell by 4.4% to Dh 4.029 billion, as the result of depressed prices.

In the phosphate derivates category, production of phosphoric acid reached 2.92 million tons, up 3.6% year over year. The export of that product grew by 7.5% to 1.58 million tons, allowing a 3% revenue increase to Dh 4.58 billion.  Some 123,000 tons of purified phosphoric acid were produced in 2002, representing a 13.9% year-on-year increase. The entire production was exported to foreign markets, generating Dh 617 million. The revenue side indicates also a continued sluggish market since the revenue was down by 0.5%.  Phosphates are a major source of fertilizers. Production of solid fertilizers fell to 2.6 million tons, from 2.71 million tons in 2001, or a 4.3% decline. But only 2.54 million tons were actually sold, generating Dh 4.16 billion.  The metal substances category was generally weaker with output falling by 6% in 2002 to 319,598 tons. Iron was the worse performer recording a 79.5% drop in output, followed by lead with -21.1% and copper, at -6.9%. Sales of this category of products generated Dh 698 million for a volume of 295,749 tons.  The output of processed phosphates, other than the above derivates rose by 19.6% year over year to 81,988 tons, generating Dh 1.44 billion in sales. 

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The Minister of Interior gives the order to remove the traffic signs written in Berber. 

Al-Ahdath Al-Maghribia (1 May) - The governor of the province of Nador received the order to remove the panels "stop" written in Arabic and Tifinagh which had been just installed in some avenues of the city. April 28, the communal council had made the decision to install street plates and traffic signs written in Arabic, French and Berber.

RABAT, May 13 /GIN, 2003 (Inter Press Service via COMTEX) -- The birth of an heir to the Moroccan throne last week has renewed debate on the reform of the monarchy, which has been ruling this North African country since the mid-17th century. Crown Prince Moulay Al-Hassan was born last week to King Mohammed VI from his marriage with Princess Lalla Salma, a middle-class computer engineer before the royal marriage.  Royalists see in the birth of the prince a warrant for continuation of the monarchy. Others see it as an opportunity for a dialogue on modernization of the political system, seen by many as anachronistic. "With the birth of the Crown Prince, the monarchy is set to last longer," Mohamed Sassi, a leading activist and former member of the Socialist Union of Popular Forces, told IPS. "However, the monarchy has to heed calls for reform and modernization if it is to survive sweeping changes." Under the Moroccan constitution "the Crown and the constitutional rights thereof shall be hereditary and handed down, from father to son, to descendants in direct male line and by order of primogeniture among the offspring of King Hassan II, unless the King should, during his lifetime,  designate a successor among his sons apart from the eldest one." The Moroccan Constitution gives vast religious and political powers to the King. The Monarch is "Commander of the Faithful" and also the "Supreme Representative of the Nation and the Symbol of the Unity Thereof." He appoints the Prime Minister, ministers and other senior officials - and can dismiss them. He is also commander-in chief of the army. Under the constitution, the King's deeds and speeches "shall not be subject to any criticism or comments." King Mohammed VI ascended the throne in July 1999 after the death of his father King Hassan II, who led his country with a blend of tact and toughness through turbulent years. The new King gave indications of his willingness to modernize the political system. He freed activists jailed by his father. His marriage with a middle-class Moroccan woman was also seen as a reflection of his desire to modernize Morocco. "But such signals are insufficient," says Sassi. "We need a revision of the country's constitution, which leaves the bulk of power in the hands of the King."

Recent arrests of several people, including journalists for "insults to the person of the King" have raised doubts about the monarchy's willingness to change old practices. Ali Lamrabet, director and owner of Demain and Doumane, two Moroccan weeklies, is standing trial at a court in Rabat for publishing stories deemed "insulting to King Mohammed VI and to Morocco's sacred values." Lamrabet had run satirical stories on embezzlement of funds in the royal palaces and on slavery, which he says is still practiced in Morocco. Boujemaa Wardi, a small shopkeeper, was sentenced to five years' imprisonment in Tata, a desert area in southern Morocco, because he tore apart a magazine whose cover page carried a photograph of King Mohammed VI. "Such incidents do not help in promoting democracy and human rights in the country," analyst Mustapha Hairan commented in the widely circulated weekly Assahiha Al-Ousbouya. "They merely continue old practices that we believed were gone."

Abdelhamid Amine, president of the Moroccan Human Rights Association, has demanded a national debate on bringing the monarchy in line with modern times. "The King should reign without ruling," he told IPS. "We cannot speak of democracy and respect for human rights as long as Moroccans are not allowed to debate issues, including those around the monarchy." Amine was imprisoned for 12 years by King Hassan II for working to establish a republic in Morocco. The birth of the prince was welcomed with what authorities called "bursts of joy" that were "a spontaneous expression of the infallible attachment of the people to the throne." Many celebrated the birth but still demanded a review of royal powers.  That is still a distant scenario, says Hairan. "The monarchy does not seem to be ready to relinquish some of its powers." Copyright (c) 2003 IPS-Inter Press Service. All Rights Reserved.

http://www.zawya.com/Story.cfm?id=134w9097&Section=Countries&page=Morocco&channel=Features%2C%20Analysis%20and%20Opinion&objectid=13F83A62-8988-11D5-867E00D0B74A0D7C 

Human rights body assess rights evolution in Morocco

The Moroccan Human Rights Organization (OMDH) will open its fifth congress Friday in Rabat to assess rights evolution in Morocco. Despite great strides made towards the consolidation of the rule of law, Morocco still witness from time to time a violation of public freedoms and economic and social rights, said Abdellah Oualladi, OMDH President. "Democracy in Morocco still has a long way to go, and it needs a push," he said. Several issues are still to be examined, especially cases of disappearance, which is subject to dialogue between OMDH and the authorities.The meeting is held at a time international law experienced a violent shake after the US aggression against Iraq, said Oualladi, who called on the Organization to promote international relations. OMDH should consolidate its inner structures and seek material and human means to achieve its mission in the best way possible, the activist said, voicing the OMDH's readiness to cooperate with other associations to ensure a better efficiency.

Morocco registers 68.8 % increase in trade deficit in first quarter

Morocco registered a 68.8 per cent increase in its trade deficit in the first quarter of 2003, following a 9,6 per cent drop of exports and a 9,3 per cent rise of imports, said Morocco's Exchange Office. Exports reached nearly US$ 2.02 billion at the end of March compared to US$ 2.24 billion in the same period last year, that is a 9,6 per cent drop. The downtrend resulted from a 10,6 per cent decrease of exports (phosphate and derived products excluded) that were valued at US$ 1.71 billion compared to US$ 1.91 billion in the same period last year.  In spite of a 3,6 per cent drop in the sales of phosphates and derived products, their share in exports has slightly improved as it was estimated at 15.5 per cent compared to 14.5 per cent at the end of March 2002. Imports reached US$ 3.23 billion at the end of March 2003 compared to US$ 2.95 billion in the corresponding period of last year, i.e. a 9,3 per cent increase. Oil excluded, the total value of imports reached US $3.07 billion compared to US $2.95 billion in the same period of 2002, that's a 13,9 increase. With US$ 162 million at the end of March 2003, crude oil purchases have registered a 37,8 per cent drop. As to cash flows, remittances of Moroccan nationals abroad have posted a 15,7 per cent increase (US $856 million  compared to US $740 million), whereas travel receipts dropped by 4,3 per cent, that is US $451 million at the end of the first quarter of 2002 compared to US $432 million at the same period this year.Investment and foreign private loans receipts dropped by 16,3 per cent, that is US $106 million compared to US $127 at the end of March 2002.

Social dialogue deal to harm Morocco's textile sector competitiveness, professionals warn

A Moroccan textile association warned that an agreement, signed recently between the government and social partners on labor grievances, risks to harm Moroccan firms' competitive edge. Under the accord, Morocco will have the most expensive labor compared to competitors such as Turkey, Tunisia, and East European countries, said Salaheddine Mezour, head of the Moroccan Textile Association. This might pose a problem, particularly in an environment of fierce competition, wherein prices are of great importance, he said. The accord, announced on May Day even, provides, inter alia, for a 10 percent increase in the Minimum wage (SMIG), higher family allowances, decrease in working hours from 48 to 44, longer holidays for nursing mothers and increase in compensations for dismissed workers. The government, unions and employers also agreed on pending issues,  including a new labor code, wherein workers and employers' rights will be heeded more equitably. Mezour urged the government to take necessary measure to ensure the reorganization of the textile sector. Enterprises alone cannot bear the costs of competition, he insisted, deploring that garment-making firms are already indebted and risk to undergo a 30 percent drop in exports and a 20 percent fall in production. The association held last week a general assembly to assess the impact of the accord signed April 30 between the government, trade unions and the employers association. "We must work hard to restructure the sector, in order to take up challenges of the international market," he said.

Moroccan airline carrier Royal Air Maroc (RAM) will receive in November two Boeing A321 aircraft. Two other similar planes will be delivered in 2006 and 2007. The company intends to acquire two Boeing 737-700/-800 aircraft per year, beginning July 2003.

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The Moroccan government is speeding up the liberalization of the telecommunications industry. Fresh efforts to open up the sector come after the 2001 tender related to the sale of licenses in the mobile communications system. The goal of the new liberalization initiative is to expand service offerings from the satellite-based public telecommunications network. In this context, the Moroccan government adopted last week four projects leading to the issuance of a decree concerning licenses to operate a global mobile personnel communication system network GMPCS. The projects are those proposed by European Datacom Maghreb SA, which has receive authorization to operate two public satellite systems called Iridium and Inmarsat. Other two licensees are Soremar SARL and Thuraya Maghreb SA to partly operate Inmarsat and Thuraya.  This latest move paves the way for the three companies to offer new services in personal telecommunications via sattelite, such as telephony and high speed Internet access. These operators will compete directly with the two biggest telecom providers, Maroc Telecom and Meditel. The length of the license is five years and is renewable.  

As part of the deal, the companies are required to invest in infrastructure building, including the acquisition and installation of the necessary equipment in accordance to international standards. Their services must also be provided to customers around the clock, seven days a week. In return, the Moroccan government pledges that it will not be involved in price fixing for services within Morocco and between Morocco and abroad. The companies will be monitored by the telecom regulatory agency, Agence Nationale de Réglementation des Télécoms (ANRT), which can, at any time, launch an audit of the companies' accounting, finance and IT practices. The three companies are required to respect the technical documents established by the government during the bid process and must maintain transparency in information sharing and communications with customers regarding prices and general usage conditions.

According to the Moroccan postal and telecommunication laws, licenses to operate a telecom service is a right that is attributed to a business by decree. It allows companies to operate a public utility business under specific conditions, in return these companies obtain important guarantees of protection for a period of five years. The financial details of the deal is composed of a fixed part and a variable element. The fixed part is a Dh 300,000 annual fee paid by each licensee. The variable element is a 2% of sales to be paid by the licensees to ANRT each year.

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The Moroccan investment bank BMCE Capital is among a growing number of North African companies seeking to establish a presence in Sub-Sahara Africa. The financial institution opened its first office in Senegal on March 10, 2003 in an effort to fund infrastructure projects in that country. The bank's Senegal projects are expected to be the first of a series of investments to be made not only in Senegal but elsewhere in the continent. To maximize its return on its future investments and its potential benefits, the bank has secured the backing of Senegal's top political and business leaders. In a press event, Senegal's President Abdoulaye Wade stated that the entry of BMCE Capital in his country is "part of a long-term investment strategy, which will have a positive driving impact on the economy." For Othman Benjelloun, BMCE's Chairman, "the new office, which will be in charge of piloting investment banking from Dakar, will also play a leading role in driving the efforts of the entire BMCE Group in its African strategy, and also an important player in attracting overall Moroccan investment in the continent."

The bank's strategy in Africa is to drive the BMCE Group's diversification effort in Africa. The goal is to manage the deployment of industries and activities that have been core to the business of BMCE, including stock brokerage, currency exchange, fund management, corporate finance management, and other financial activities. BMCE Capital analysts say their latest research indicate strong potential in various financial segments in many central and western African markets. These research findings led BMCE management to select Senegal's capital Dakar as the Group's launching pad for its West African investment initiative. In the fist phase of its entry into West Africa, BMCE Capital will initially offer corporate and financial consulting services. Led by Adnan Chmanti, the bank's Dakar office has already landed a series of consulting projects. BMCE has been selected to advise the government of Senegal on the construction of the new Dakar airport, the sale of a third GSM mobile phone license, the construction of a highway, the reform of the insurance sector, and the construction of affordable housing.

But Senegal is not the only market eyed by the BMCE team. The bank is currently looking at opportunities in Congo, where it is likely to play a role in restructuring the financial sector, Equatorial Guinea for the establishment of an airline, a bank and an insurance firm. In Mali, BMCE Capital is involved in establishing an insurance company and is looking for companies to partner with the government of Mali in the development of the Koderian gold mine.  The bank says it is upbeat about the prospect of doing business in the region not only because of the economic and financial potential of these projects, but also because the region's economies are increasingly integrated thanks to the WAEMU for the West Africa region and CAEMC forCentral Africa. The West African Economic and Monetary Union groups Senegal, Benin, Burkina Faso, Côte d'Ivoire, Bissau-Bissau, Mali, Niger, and Togo. Central African Economic and Monetary Community groups Cameroon, Centrafrican Republic, the Congo, Gabon, Equatorial Guinea and Chad.  The BMCE's interest also stems from the lack of investment banking activity in the region, which management considers an opportunity rather than a risk, in particular to help local governments manage their privatization programs and public service concession offers. The bank is also hoping to leverage its relationship with the Senegalese president to win infrastructure project at the continental level. Indeed President Wade has been appointed Vice President of the infrastructure section of the African-wide Nepad initiative (New Partnership for African Development). Consulting to African government is considered by BMCE as a key priority in its service offering. The bank is currently involved in a variety of government-led programs and privatization initiatives, including the concession of utility activities, transport and telecommunications. Although the bank expects to make inroads in Africa, it is also aware that the challenge remains rather daunting. Among the biggest hurdles is the lack of basic infrastructure, which will require, according to bank analysts long-term commitments. In addition, the bank says while there is a proliferation of small and mid-size companies in the continent, they lack financial resources and suffer from weak banking systems. In this context, local banks often bring inappropriate solutions to companies' financing needs, in particular when funding human resources and exports.

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