FOM Newsletter February 2004
Morocco Week in Review 
February 14, 2004

'Energy Shops' Act As Development Spark Plugs in Rural Morocco.
US, Morocco to ink free trade agreement
Morocco's Free Trade with US, Not A Problem for EU, Official
Morocco moves to enrich edible oil with vitamins a and d3.
«Students in Free Enterprise» Organization Launches Morocco Branch.
Morocco's Electricity Demand Hits Record in 2003
Morocco, UK probe trade relations
Morocco, Largest Beneficiary of Kuwaiti Fund.
International symposium on the management and preservation of water resources, Morocco.
Reporter: social security fund aspires to draw 2 million affiliates by 2005.
Casablanca Ambitions Annual 1 million tourists by 2012.
Morocco to Set Up Government Body to Fight Piracy.
Authorities Take Emergency Measures Following Mass Death of Sebou River Fish
Morocco Emerging as Strong Candidate to Host 2010 World Cup.

'Energy Shops' Act As Development Spark Plugs in Rural Morocco.
United Nations Development Programme (New York) February 12, 2004

Morocco will help 500 young entrepreneurs from rural areas set up 'Energy Shops' to sell solar panels and water heaters, improved ovens and other equipment, distribute butane gas, and promote awareness of rural energy programmes. The aim is to improve rural access to renewable and clean energy and create a regulatory and financial framework, with public and private sector support, so the shops can be spark plugs for rural development.

The four-year initiative will begin with feasibility studies for potential store locations that local communities will choose. A UNDP-supported pilot had earlier established 50 shops. Each shop costs about US$10,000 to set up, and the entrepreneurs will make an initial investment of $3,000. They can apply for loans through a partnership with Fondation Banque Populaire to cover the rest of the start-up costs. The bank will also train them in business management. They will each get $5000 worth of tools and equipment as well as technical and business support.

"Our aim is to bring this new concept to scale throughout the country, thus promoting employment and local expertise," said Minister of Energy and Mining Mohammed Boutaleb. According to UNDP Administrator Mark Malloch Brown, who participated in the launch while in Morocco recently for an international conference, five small energy businesses would make no difference and 50 would be a start. "But 500 businesses will make a real difference in alleviating poverty through the development of renewable energy," he said.

"We are very proud to launch such an innovative programme, based on the success of the pilot phase," said UNDP Resident Representative Emmanuel Dierckx de Casterlé. "It can now be considered a model for a good partnership in renewable energy between government, civil society, the private sector and UNDP."

Partners with UNDP in the programme include the Ministry of Energy and Mining, the Centre for the Development of Renewable Energy (CDER), the National Electricity Office, the Agency for Socio-Economic Development of the Northern Provinces, the Moroccan Association of Private Solar and Wind Energy, the Near East Foundation, Spanish Cooperation (Junta de Andalucia),
local communities, and national and local civil society organizations.

Negotiations are underway with the National Employment Agency and the solar power and gas industries to develop further business opportunities with the shops. The programme's budget is $1.5 million, for which is UNDP contributing $200,000.

http://allafrica.com/stories/200402130003.html
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US, Morocco to ink free trade agreement Rabat launches drive in Arab states to boost commerce, investments Kingdom expects to sign deal with Washington in April, paving the way for closer economic cooperation
Abbas Salman / Special to The Daily Star

MANAMA: Morocco and the US are expected to sign a long-awaited free trade agreement between the two countries in April, ending several months of intense negotiations, Arab diplomats in the Gulf said. They also said that Rabat was starting a diplomatic offensive in Arab states aimed at coordinating foreign policies and boosting trade and investment ahead of the projected signing of the agreement.
"The free trade agreement with the United States will be signed in April,"one diplomat told The Daily Star, on condition of anonymity. "It reflects Rabat's strategic importance."

Morocco, which has a trade partnership with the European Union, has enjoyed close ties with the United States for a long time. Washington hopes the free-trade deal can serve as a model for other countries willing to enter a similar pact. The deal will also help Washington promote its products in the area, and enable closer cooperation with Morocco in the "war on terrorism."

The United States has created a council, composed of a coalition of economic organizations, to promote the agreement project with Morocco.
Washington currently has free trade agreements with four countries Israel, Jordan, Canada and Mexico.
Bahrain, the headquarters of the US Navy's Fifth Fleet, has also started negotiations with Washington to reach a free trade agreement between them, and Bahraini officials have predicted that the talks are likely to be completed in June.
Bahrain wants to conclude the talks as soon as possible, as it expects it will fuel economic growth in the small island state, the least wealthy in the Gulf. Finance and Economy Minister Abdullah Hassan Saif of Bahrain has predicted that the deal, once signed, will create around 30,000 job opportunities.

Diplomats also said that a team from the EU visited Morocco this week for talks with officials on proposed plans to expand the EU. They said the team has discussed ways of cementing cooperation with Rabat. They declined to give further details, but the move was apparently aimed at keeping Rabat in the EU fold ahead of its trade agreement with Washington.
Diplomats say that Morocco is trying to keep a balancing policy between its needs to maintain its strong trade with the EU on one hand and promoting its ties with the US on the other. "Morocco needs both and is playing it well so far," one diplomat said.
Diplomats said that Moroccan Foreign Minister Mohammed Bin Aissa is in Libya for talks with officials aimed at reaching "a partnership" between the two Arab states, and is part of a drive by the country to boost trade exchanges and coordinate policies.
They said Bin Aissa would also travel to Bahrain, Qatar and the UAE later this month for a similar mission.
In Bahrain, diplomats said, Bin Aissa would sign several agreements with his Bahraini counterpart Sheikh Mohammed bin Mubarak al-Khalifa as part of a joint committee meeting.

The Moroccan minister will sign deals and memorandums of understanding with Bahrain in the fields of information, tourism, health, environment, industry, culture and education as well as judiciary and work force regulations," one diplomat said.
Moroccan Charge d'Affaires to Bahrain Alaa Uddin Binhady has earlier called for the creation of a free trade zone with Bahrain in preparations for expected global changes especially in trade exchanges. "We should be ready for the changes through building competitive environment and strong bilateral relations to face challenges."

Trade exchanges between Morocco and Bahrain in 2001 totaled only $6 million, with Manama exporting goods worth $4 million and its imports were worth $2 million. "The trade exchanges do not amount to the existing strong relations between the leaders in both countries," he said.
Arab officials have expressed concern over poor trade exchanges between their countries and Morocco, which conducts the bulk of its trade with European countries because of its geographical location. Moroccan officials also said that the country has started building massive tourist projects worth millions of US dollars, to attract more foreign tourists, mainly from the EU. "That includes construction of five star hotels, tourist resorts and villages in five major tourist areas in the kingdom. They will be built with the help from European and Gulf Arab investors," one official said.
http://www.dailystar.com.lb/business/10_02_04_d.asp
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Morocco's Free Trade with US, Not A Problem for EU, Official
Rabat, Feb.12

The free trade agreement to be concluded between Morocco and the United States does not constitute a problem for the European Union (EU), according to the European Commissioner for the (EU) enlargement. On the contrary, such an agreement is "in Europe's interest", Gunter Verheugen, who visited Morocco last week, told the Moroccan newspaper L'Economiste in an interview published on Thursday.

Morocco and the U.S are expected to sign this year a Free Trade Agreement (FTA) after six rounds of negotiations in 2003. The decision to conclude the FTA was taken during a visit of HM King Mohammed VI to the United States in April 2002.

In this interview, Verheugen gave assurances that Europe's enlargement (from 15 members now to 25 in less than three months), will not alter the priorities of the EU as far as its Mediterranean partners are concerned. The aim of the enlargement, he insisted, is to secure peace, stability, democracy and prosperity in the whole region, from the Baltic to the Black Sea.

Verhugen who paid last week a two-day visit to Morocco to pave the way for the implementation of the "New Neighborhood policy" of Enlarged Europe and announced that the kingdom will be among the first countries with which an action plan will be finalized very soon so to be debated and adopted by the Council of Europe in June, said this policy will benefit neighboring Mediterranean countries, given its positive impact on stability.

On the advanced status -halfway between association and full fledged membership- Morocco is claiming in its relations with the EU, Verheugen said what it is important is that Morocco draws benefit from the European integration process which aims not only at economy but also peace and stability.

The European Commissioner further said that the EU apprehends the immigration phenomenon as "a social justice at the world scale", noting that the Europeans should not come under "the illusion that they would be able to enjoy their prosperity forever if other regions of the world, such as Africa, plunge into misery."

Asked about the recent reforms Morocco has undertaken, the European official welcomed the recently adopted Family Code which puts women on an equal footing with men. He said the EU is ready to support Morocco in its efforts part of the "Neighborhood policy." The EU's neighborhood policy comes to reassure southern neighbors that the European Union eastward enlargement to 10 new members next May will not mean less attention to the south Mediterranean countries. MAP 2004
http://www.map.co.ma/mapeng/eng.htm
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Morocco moves to enrich edible oil with vitamins a and d3.
Morocco, Health, 2/7/2004

The Moroccan government and the professional association of edible oil manufacturers (APFHMTR) signed on Thursday a framework agreement providing for the enrichment of edible oil with Vitamin A and D3.

The health ministry has set the quantities of vitamin A and D3 to be supplemented to oil at 30IU (international units) of vitamin A per gram and 3IU/G of Vitamin D3.

The move, part of the Kingdom's comprehensive and integrated strategy to reduce diseases induced by deficiencies in micronutrients, seeks to reduce Vitamin A-avitaminosis (diseases caused by deficiency in Vit. A), cut the prevalence of Iron deficiency-induced anaemia (sideroprivic) and ensure a permanent supply of Vitamin D. It targets most vulnerable populations, mainly children and pregnant and breast-feeding women.

The strategy also includes food education and the enrichment of other widely-consumed foods.

The edible oil manufacturers is paying for the costs resulting from the added substances.

Before the enriched edible oil is put on sale in the coming weeks, the health ministry will stage a media campaign to highlight the importance of eating rich and enriched products which will be marketed with a special label as it is done with iodine-supplemented salt.
http://www.arabicnews.com/ansub/Daily/Day/040207/2004020717.html
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«Students in Free Enterprise» Organization Launches Morocco Branch.
CASABLANCA, Feb.11

International organization "Students in free enterprise" (SIFE) presented on Tuesday to the public its Morocco branch designed to promote leadership, teamwork and communication through learning, practicing and teaching the principles of free enterprise. The Morocco chapter of the US-based organization, that gathers 1,500 universities and 250 major companies, was set up by graduates of public and private higher schools of management and commerce studies. Students on the newly formed SIFE Morocco teams will develop community outreach projects to meet specific needs in their communities.

On July 8, 2004, the teams will present their projects to a panel of distinguished judges at the inaugural SIFE Morocco National Competition in Casablanca. The winning team will advance to the SIFE World Cup competition, September 22-24 in Barcelona, Spain, where team members will compete against SIFE National Champions from more than 30 other countries and will be judged on the results of their projects by some of the world's most powerful business leaders. Members of the 2003 SIFE World Cup Champion Team, Drury University (USA) will travel to Morocco in February to help the new SIFE Teams get started.

Founded in 1975 in the United States, SIFE works in partnership with business and higher education to provide students the opportunity to develop leadership, teamwork and communication skills through learning, practicing and teaching the principles of free enterprise. © MAP 2004 http://www.map.co.ma/mapeng/news/spo_cult/spor3003.htm
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Morocco's Electricity Demand Hits Record in 2003
RABAT, Jan.28

Electricity demand in Morocco hit a record 16.77 GWH (gigawatt hour) in 2003, rising by 8% compared to 2002, says the state-owned electricity company (ONE). The figures released during ONE's administrative board meeting show that the 2003 record demand was met at 57% by purchases from concession production. ONE's direct producers supplied 34% of the demand while imports through inter-connections was 9%.

In the same year, the production of ONE-managed plants progressed by 27.5% while water-generated electricity reached 1,442 GWH, compared to 842 GWH in 2002, thanks to good rainfalls in 2003. The office also reports an increase of 10% of its customers (2.4 million), including 216,000 new subscribers and 104,000 customers who were connected through the general rural electrification program (PERG).

In 2003, ONE investments reached 3.2 billion DH, including 1.1 billion DH to connect rural areas to the electric grid. In 2004, investments will reach
4.1 billion DH, including 1.7 billion for rural electrification that will be intensified until the end of the PERG program in 2007. The investment program also plans to carry on strategic projects, especially the consolidation of the conveyance network, inter-connection with neighbouring countries, improvement of production capacities of thermal, hydraulic or wind-generated electricity and the upgrading of customer services.

It was also announced that electricity will be supplied to 288,000 households in rural areas, in order to reach 70% of rural electrification by end 2004. In 2003, 161,000 households were equipped with electricity, 33% more than in 2002. As a result, the rate of rural electrification nationwide stood at 62% by end 2003, as compares to 55% by end 2002. ONE's administrative board also examined findings of a study on the sector liberalization conducted by a consulting firm and decided to submit it to the government.

Spain is presently among Morocco's most important trade partners, both as regards direct investments and financial cooperation, concluded Azoulay who invited the Spanish business community active in Morocco to share their experience with would-be investors both in Spain and in Europe. © MAP 2004
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Morocco, UK probe trade relations
RABAT, Feb.11

Moroccan minister of foreign affairs and cooperation, Mohammed Benaissa, met here Wednesday British minister of state of trade and investment, Mike O'Brien, currently on a 3-day visit to the Kingdom, on trade cooperation.

During the meeting, the two men stressed the need to reinforce these relations through promoting the role of the Moroccan-British business council which was set up two years ago.

British companies are looking towards countries like India and China, and we are encouraging them to consider investing in the north African region which boasts important assets such as proximity to Europe, the quality of its labor force and the substantial advantages it offers to foreign investors, O'Brien told MAP following the meeting.

The British official voiced his country's support to granting Morocco an advanced status in its relations with the European Union, half way between association and full-fledged membership.

On his part, The Moroccan foreign minister said "Britain understands Morocco's position for a political, negotiated settlement to the Sahara issue, voicing hope that London supports its stand at the Security Council."

Mike O'Brien also met Premier Driss Jettou and minister of agriculture and rural development, Mohand Laenser.  MAP 2004
http://www.map.co.ma/mapeng/eng.htm
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Morocco, Largest Beneficiary of Kuwaiti Fund.
RABAT, Feb.10

Morocco is topping the list of beneficiaries of the Kuwaiti Fund for Arab Economic Development (KFAED) with a total of US$ 855 million earmarked, since 1966, to 29 development projects in the Kingdom, a press release from the Kuwaiti Embassy revealed, here Monday, on the occasion of a visit of a KFAED delegation.

Cooperation between Morocco and the Fund that goes back to 1966 reflects "the excellence of the solid and exemplary relations between the two countries", the press release said.

The delegation visit that will last until February 21, aims at assessing the project of the highway linking the Mediterranean port of Tangiers to the Northern highway (Rabat-Asila).

The objective of the Fund, set up in 1962, is to provide assistance to the developing countries in their efforts towards economic development.

The total number of the fund recipients has reached 86 countries including
16 Arab countries, 35 African, 22 Asian and European countries, and nine Latin American and Caribbean countries. The Kuwait Fund also contributes to the resources of multilateral development institutions.

Total contributions to other institutions amounted to US$944 million at the end of 1996 and were distributed among the Arab Fund, the Arab Bank for the Economic Development in Africa (BADEA), the African Development Bank and Fund, the Inter-Arab Investment Guarantee Corporation, the International Development Association (IDA) and the International Fund of Agriculture Development (IFAD). © MAP 2004
http://www.map.co.ma/mapeng/eng.htm
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International symposium on the management and preservation of water resources, Morocco.
[Date: 2004-02-10]

An international symposium on the management and preservation of water resources will take place on 24 and 25 September in Meknes, Morocco.
The event, organised by the University of Moulay Ismaïl, will focus on four themes: water quality; ecology of the aquatic systems; management and preservation of water resources; and water resources and sustainable development.

The objectives of the symposium are to:
- identify existing knowledge and current research programmes on water quality;
- update ecological data on the different bio-indicators of the aquatic environment;
- reinforce exchange and collaboration between universities and the public sector for a participative and integrated management of water resources.
For further information, please contact: Professor A. Chahlaoui  E-mail: cigpre@fsmek.ac.mac
http://dbs.cordis.lu/cgi-bin/srchidadb?CALLER=NHP_EN_NEWS&ACTION=D&SESSION=&RCN=EN_RCN_ID:21574
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Reporter: social security fund aspires to draw 2 million affiliates by 2005.
Morocco, Economics, 2/7/2004

The Moroccan social security fund (CNSS) projects to increase the number of its affiliates to 2 million by 2005, Mounir Chraibi, the director general of CNSS told the "Reporter" weekly. According to Chraibi, the reform of the agricultural sector and the draft law under scrutiny on social coverage of independent craftsmen would allow a greater number of people operating in these two fields to adhere to the social security fund.He said CNSS plans to realize five major objectives, mainly concerning the entry into force of a compulsory health insurance, a compensation for job loss and pensions regime. The director general added that the CNSS plans a reorganization of its system to be adapted to the objectives set http://www.arabicnews.com/ansub/Daily/Day/040207/2004020713.html
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Casablanca Ambitions Annual 1 million tourists by 2012.
CASABLANCA, Feb.11

Morocco's financial and economic capital, Casablanca, ambitions to attract one million tourists annually by 2012 and needs, to fulfill this goal, 5,700 new hotel rooms. Local tourism professionals say an amount of 6 billon DH (US$ 689.6 million) is slated to be invested in the hospitality and catering sector in the city, which has an estimated accommodation capacity of 4,300 rooms and 46 hotels, including 64% of 4 to 5-star hotels.

The city, which has a capacity of 3 million guest nights, already attracts annually 500,000 tourists, particularly businessmen, and holds an 11% share in the Moroccan tourist arrivals. A local professional stressed that the target of one million tourists needs an improvement of living conditions, economic security through an expanded activity and more cultural and leisure infrastructure. MAP 2004
http://www.map.co.ma/mapeng/eng.htm
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Morocco to Set Up Government Body to Fight Piracy.
Rabat, Feb.11

The Moroccan Government intends to set up, soon, a permanent committee to «monitor audio-visual recordings and to struggle against piracy and forgery», it was announced, here Tuesday, during a meeting between representatives of different ministries and professionals.

The task of this watchdog committee will be to promote public awareness on the threat posed by piracy for artists.

Head of Morocco's copyright office «bureau marocain du droit d'auteur » (BMDA), Abdallah Ouedghiri, said that the setting up of such a committee reflects the government's resolve to protect intellectual property in Morocco, signatory of various germane International Conventions.

The committee will also help in promoting investments in the audio-visual sector. It will be chaired by the prime Minister and will comprise representatives from the ministries of Justice, Interior, Communication, Finance, Industry, Commerce, telecommunications, BMDA, Royal gendarmerie, the Police, Customs and others. © MAP 2004 http://www.map.co.ma/mapeng/eng.htm
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Authorities Take Emergency Measures Following Mass Death of Sebou River Fish
KENITRA, Feb.13

Authorities in the city of Kenitra (40km north of Rabat) have taken emergency measures following the surfacing Thursday of large numbers of dead fish on the banks of Sebou, one of Morocco's biggest rivers.

A committee made up of veterinarians, port authorities, firemen, county police and the water and forests department was set up to assess the situation and take preventive measures against the consumption or marketing of the dead fish.

Checkups have also been carried out along the river by teams of the National Institute of Sea Studies (INRH) and Sebou waters are being analyzed in a Rabat specialized lab.

The Sebou river suffers massive pollution, caused by populations and by flanking cities and factories, mainly sugar and paper plants. Another source of pollution is the Oued Fez river that carries waste produced by the city's traditional leather and olive oil plants. © MAP 2004
http://www.map.co.ma/mapeng/eng.htm
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Morocco Emerging as Strong Candidate to Host 2010 World Cup.
VOA News 10 Feb 2004, 19:25 UTC

Morocco seems to have emerged as a strong candidate to host football's (soccer's) World Cup finals in 2010. Morocco's King Mohammed VI hired banker Saad Kettani to lead Morocco's bid, and funding is in place. About $180 million towards organizational costs has been deposited into a Swiss bank and three new stadiums are already under construction. In addition to Kettani, Alan Rothenberg is part of the team to help bring the World Cup to Morocco. He led the group that organized the 1994 World Cup in the United States. If Morocco is chosen, it would be the first African country to host football's premier event. South Africa may also be a frontrunner, while Egypt, Libya and Tunisia are also being considered as hosts.
Morocco is bidding for the fourth time, and South Africa lost out to Germany by just one vote for the 2006 World Cup. Football's governing body, FIFA, will make its decision on May 15 in Zurich. The stakes are high because FIFA has a rotation policy among the continents to host the World Cup, meaning Africa would not be eligible again until 2030. But the rotation policy may be reviewed by FIFA. Some information for this report provided by AP.
http://www.voanews.com/article.cfm?objectID=BD2EFFF9-9AE8-45CB-8558DACF0B839C27&title=Morocco%20Emerging%20as%20Strong%20Candidate%20to%20Host%202010%20World%20Cup&catOID=45C9C788-88AD-11D4-A57200A0CC5EE46C&categoryname=Sports
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