Virtual Magazine of Morocco on the Web
Morocco Week in Review 
October 11, 2008

26.5% of Moroccans suffer from depression, study.
Rabat, Oct. 9 (MAP)

26.5% of Moroccans suffer from depression, according to a study released on the eve of the International Health Day, celebrated on October 10th under the theme "making mental health a national priority". According to the survey, carried out by the Health ministry among 6,000 people, 49.9% suffered a minor psychiatric disorder at least once during their lives (insomnia, anxiety, depression...etc). The prevalence of depression is more frequent among women (34,3%) than men (20,4%), and more frequent in urban areas (31,2%) than in rural areas (21,8%).

The national survey revealed the prevalence of drug abuse (2%), drug addiction (2.8%) and alcohol addiction (1.4%) among the targeted population, noting that alcohol and drug addiction among men was higher than among women. To face this pathology, the Health ministry put mental health atop of its 2008-2012 action plan, which provides for implementing measures aiming to provide psychological care and fight stigmatization of people with mental disorders. The ministry also provides for fighting addiction by setting up psychological centers that will provide free treatment and advice on addiction. The ministry counts 116 psychiatrists operating in psychiatric hospitals.
http://www.map.ma/eng/sections/social/26.5_of_moroccans_s/view
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EU foreign ministers to offer special status to Morocco.
Saturday, 11 October 2008

European Union foreign ministers will on Monday offer an "advanced status" to Morocco, which has for years been seeking deeper relations with the bloc, sources in Brussels said Friday. Such a status, though it would have no extra legal weight, would place Morocco a notch above the members of the EU's ""neighbourhood policy" such as Egypt, Israel, Georgia and Ukraine.

In its last report on the neighbourhood policy, the European Commission judged that four countries merited stronger links with the 27-nation bloc; Ukraine and Israel, which have begun talks on enhanced agreements, and Morocco and Moldova, which is set to also receive a promise Monday of deeper ties.

Morocco has long sought such a boost in its European relations since entering an association agreement, similar to the "neighbourhood policy" system, back to 1996. After months of negotiations with Rabat, the new upgraded status will be formally proposed at a meeting of EU foreign ministers in Luxembourg on Monday, according to draft text seen in Brussels.

The status will see a series of measures to boost ties. EU-Morocco summits would be held regularly to enhance political ties and Morocco will also participate in European civil and military crisis management operations, under the proposals. Morocco's enhanced relationship will also see stronger cooperation with the EU and the "progressive integration of Morocco in the EU's internal market," the text explains. The "advanced status" would also include the setting up of a "common economic space" based on the rules of the European Economic Area, comprising the EU nations plus Iceland, Liechenstein, Norway and Switzerland.

Morocco will also be able to participate in a number of European agencies, such as Europol, the European Air Security Agency and the European Monitoring Centre for Drugs and Drug Addiction. To help it attain this "advanced status," the European Union will increase its aid to Morocco, already the biggest beneficiary of European neighbourhood policy funds with 654 million euros earmarked for the 2007-2010 period.
http://www.morocconewsline.com/index.php?option=com_content&task=view&id=314&Itemid=1
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Morocco's economy up to global economic challenges, minister.
Rabat, Oct. 10 (MAP)

Morocco's economy is in a position to rise to the global economic challenges thanks to the structural reforms initiated by the Kingdom, said, here Thursday, Moroccan Finance Minister, Salaheddine Mezouar. Morocco is faced with an "enormous challenge", namely that of soaring prices of food staples, but the crisis has been contained thanks to the preservation of the pace of growth, whose rate is expected to stand at around 6.8%, the minister told the Moroccan TV channel (Al Oula).

He noted, in this regard, that huge efforts have been made to subsidize food products in order not to undermine the purchasing power, he said, adding that the budgetary deficit is expected to be contained below 2.3%. At the international level, we are facing a deep financial crisis which has turned into an economic crisis that will affect all economies of the world, he said, recalling that the World Bank and the International Monetary Fund have said, in a recently published report, that the developed countries will be the hardest hit by the crisis, while the impact will be limited in the developing countries. The minister also noted that the report showed that the growth rate in Morocco will drop by a mere 0.2%, adding that according to the IMF’s estimates, the Kingdom has all the potentialities to address the global economic crisis and preserve the growth pace.

Regarding the financial market, Mezouar who described as “normal” the fluctuation that the Casablanca stock exchange recently witnessed, underscored the importance of investors’ confidence as well as the need to keep in check the mechanisms of the stock market, which come down to four major axes. The first is the fact that 98% of foreign investments in Morocco are continuous and stable, while the second is related to results achieved by businesses quoted on the stock exchange list during the first semester of the year, he said.

The third is linked to the climate and the economic and sectoral dynamic of the companies listed on the stock exchange, while the fourth lies in the ability of public authorities to control the key equilibriums of the national economy. In this respect, he noted that indicators suggest that all equilibriums of the Moroccan economy have been kept in check, and that results achieved since the start of the year have surpassed expectations.
http://www.map.ma/eng/sections/economy/morocco_s_economy_up/view
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Moroccan government targets rental housing crisis.
By Sarah Touahri  2008-10-05

A new study in Morocco found mistrust between landlords and tenants, fewer people renting houses and a lack of motivation for people to rent. The government has resolved to find a solution. The Moroccan government is planning to shake up the country’s troubled rental housing sector.
According to a government study released September 24th, Morocco faces a shortage of developers in both the public and private rental housing sectors, few financial and legal incentives for people to rent and an ill-defined and mutually-suspicious relationship between landlords and tenants.

New proposals are in the works to end the crisis, Housing, Town Planning and Development Minister Ahmed Taoufik Hejira said at a press conference announcing the study findings. One major problem the ministry analysis uncovered: 30% of landlords surveyed said they have encountered disputes with tenants over increasing rent, late payments or no payments. "Tenants refuse to pay higher rent," said landlord Mohamed Marouane, adding that he is disappointed by the direction the rental market is going. The study showed that the percentage of families living in rental housing units has fallen to 29% in 2008 from 43% in 1982.

"I’ve been renting my house with an area of 100m2 for 800 dirhams a month over twenty years, and now this price is set to more than double," he said. "I’m thinking of going to court."

To address problems uncovered by its study, the Housing Ministry put forward a number of measures. In addition to legal reforms to shake up the sector, it aims to restore trust between landlords and tenants, introduce tax breaks and create rental mediation companies to provide guarantees to landlords. The government is proposing a 20% cut in the level of taxation on rent and the total elimination of tax paid by small landlords on their rental income. Seventy-seven percent of landlords would like to see the tax breaks available in the property sector extended to the rental sector.

The tax changes also support Morocco's new scheme for expanded social housing. The plan would give higher tax allowances for profits earned from homes rented to low-income families, tax breaks for rental-sector investments and subsidised long-term loans for the construction of affordable rental housing.

Mediation between landlords and tenants must be stepped up if the disarray in the market is to be tackled, the ministry's study recommends. Hejira has high hopes that these proposals will restore trust between real-estate investors and potential tenants in order to fill some 163,000 currently empty rental properties.

A bill to strengthen the legal framework governing the sector will soon be sent to parliament."This will clearly define the rights and obligations of landlords and tenants and ensure conditions of profitability and stability in the relationship between the two parties," Hejira said. "It is about time to take legal action," said realtor Ahmed Bzioui. "For example, the role of estate agencies should be expanded in this area to cover rent recovery and housing management."

Formalising the rental contract will also protect tenants. Some landlords are unofficially leasing their properties in order to avoid paying tax, leaving renters with no legal protection. "It’s a common practice," one tenant told Magharebia. "I’m renting a flat in Rabat without a contract and am worried I could be thrown out," Hajer Bakali said. Still, she is willing to take the risk for a good deal. "The rent is acceptable," she admitted.
http://www.magharebia.com/cocoon/awi/xhtml1/en_GB/features/awi/features/2008/10/05/feature-01
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Moroccan tech market enjoying 3G internet boom.
By Adam Mahdi  2008-10-06

The Moroccan telecommunications market continues to show strong signs of growth, with the numbers of 3G and home internet users on the rise. Growth in information and communications technology (ICT) in Morocco has been dominated by a boom in 3G Internet and the sustained growth of mobile telephone subscriptions, with a current market of more than 21.5 million customers. The number of fixed-line telephone customers has also grown, recently surpassing 2.7 million.

According to recent market indicators from the National Telecommunications Regulatory Agency (ANRT), Morocco has consolidated its growth trend in the ICT market. The numbers also show growth in the market for mobile and fixed telephony and the Internet to be sustainable. In real terms, Morocco now has more than 21.5 million customers in the mobile sector, equalling a 70% penetration rate. In terms of market share, Maroc Telecom provides roughly two-thirds of mobile coverage with 66.37% of the market, compared to 33.37% for competitor Médi Telecom.

The breakdown of mobile customers by subscription type, however, shows a market dominated by pre-paid users, with just 4% on contract. The wireless market looks set to continue its upward trend with the recent start-up of a mobile offer from a third national operator, Wana. "Despite this boom in mobile telephone take-up, the market remains limited in terms of the services and content offered to customers over their handsets," said Taher Alami, Director of communications firm Abweb Consulting.

Where the internet is concerned, the kingdom now has more than 650,000 subscribers; this represents growth of 37% compared with June of last year. When market share is broken down, this shows the emergence of a new entrant – in this case, Wana – in the 3G internet sector with 18%, compared with 76% for Maroc Telecom and 4% for Médi Telecom.

Wana's forceful entry into the 3G segment is explained by the launch of these new services in Morocco since April 2007. These services are characterised by their ease of use, offering the user an Internet connection with full mobility within the areas covered by the network, principally in the nation's major cities. Total penetration of 3G internet rose in June 2008 to around 160,000 subscribers, with an astounding rate of growth of more than 553% in a single year. As a result, 3G has become the second most popular way of accessing the Internet, with 24% of market share compared with 74% for ADSL broadband internet.

According to Adil Bikarbass, technical director of technical consulting group MTDS, "3G access is still of great value to businesses, particularly those whose resources are constantly on the move around the Kingdom." Meanwhile, the liberalisation of fixed telephony is starting to have an effect. According to indicators from the ANRT observatory, the number of subscribers has reached 2.7 million, with a penetration rate on the order of 9%. This figure encompasses residential subscribers, businesses and payphones using the fixed telephony network. The fixed telephony market is thus dominated, almost equally, by Maroc Telecom and Wana.

In addition to growth in infrastructure, Moroccan consumers are benefitting from an expansion of technical services. Most notably in 2008, it is now possible to make online payments using locally-issued bank cards. Several online vendors now offer Moroccan web surfers the possibility of shopping directly over the internet.
http://www.magharebia.com/cocoon/awi/xhtml1/en_GB/features/awi/features/2008/10/06/feature-01
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Global economic crisis triggers bear market in Morocco.
By Mawassi Lahcen  2008-10-09

Despite efforts by the government and banking officials to downplay the country's risk of impact from the current global economic crisis, Morocco's stock market has suffered a hit in recent weeks. Despite a low rate of foreign investment in the Casablanca Stock Exchange – estimated at just 5% – Moroccan stocks proved this week that they are not impervious to the financial crisis currently shaking up world markets.

The Moroccan stock market has actually been in decline since mid-March, with the outbreak of the mortgage crisis in the United States. owever, real deterioration began in September with the start of US banking problems and their effects on the global financial system. Total losses in the Moroccan stock market since March amount to 112 billion dirhams, or some 18% of the nation's GDP in 2007. More than 86 billion dirhams have been lost since early September as a result of the shocks in global stock markets, reducing the total capital of the stock exchange from 666.73 billion dirhams on September 1st to 580.5 billion on Tuesday (October 7th).

Moroccan officials have been careful to deny any link between the global financial crisis and the Moroccan financial system. Jaloul Ayad, Director General of the Moroccan External Trade Bank (BMCE), is of the opinion that the collapse of Moroccan stocks was due to psychological factors. "What took place here in the stock market in recent weeks was a case of panic among dealers in Moroccan stocks," he said. "[They] were influenced by what they saw on TV as a result of the Wall Street collapse and its implications across the world."

Ayad maintained that Moroccan banks are immunised against upheavals in the global banking system because of their weak foreign links. "Although our financial system is open and liberal, our banks depend on local resources – especially client deposits – in re-financing their assets," he said, "unlike in some countries, where banks depend on foreign funds to re-finance their assets". Attijariwafa Bank Chairman Mohammed Kettani also defended the solidity of Morocco's banking system. "The global financial crisis is limited to very advanced financial instruments such as mortgages and derived financial products. These products don't even exist here in Morocco, where banking services are still simple and basic," he said.

As to the state of mortgage loans in Morocco, Kettani said, "Moroccan banks grant mortgage loans based on strict criteria that are based on families' ability to save. The approved rule is that the debt instalments don't exceed 40% of family income. Therefore, I don't see any risks in this respect as long as we control the rate of inflation and interest rates."

Morocco will be more affected by reductions in trade and foreign investment than by financial decline because of the limited nature of the Moroccan stock market, said Ahmed Abboudi, Director of the Moroccan Centre for Business Conditions (Centre Marocain de Conjoncture, or CMC). According to Abboudi, the CMC expects the global crisis will lead to a 1.5 to 2% decline in short-term growth. The group also expects a related increase in inflation, to break 4.5% for the first time in several years. "I don't think Morocco will face any trouble in strict financial terms," he said. "However, the aggravation of the global financial crisis, the speed of its spread and its move from finance to the economic circle will undoubtedly lead to shrinking world demand for Moroccan industrial products and services." http://www.magharebia.com/cocoon/awi/xhtml1/en_GB/features/awi/features/2008/10/09/feature-01
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Amazigh community torn over World Congress site.
By Imrane Binoual 2008-10-09

The Federation of Amazigh Associations in North Africa is undecided between a Moroccan or Algerian site for its 5th World Amazigh Congress. Arguments continue as the deadline approaches. Just three weeks before the 5th World Amazigh Congress is due to begin on October 31st, the Federation of Amazigh Associations in North Africa is still debating where the event should be held.

The congress – originally scheduled to convene in Kabylia in July – was postponed after the Algerian authorities denied the group permission to hold it. Since then, several CMA member associations have been fiercely competing to host the congress. "Following the ban imposed by the Algerian authorities on our 5th congress, a number of the CMA’s member associations in Morocco volunteered to organise this great international Amazigh meeting," said CMA President Lounes Belkacem.

CMA is an international NGO to defend the rights and interests of the Amazigh people. It was created in Saint Rome de Dolan (France) in 1995. The CMA brings together Amazigh cultural associations and organisations across the different countries of the Tamazgha (North Africa) and also within the diaspora in Europe and North America. At the time of the ban, Belkacem tried to convince the Algerian authorities to allow the congress, but to no avail. On June 16th the CMA turned to the courts to force the wilaya of Tizi-Ouzou to lift the ban, but after three hearings the court decided it was "unqualified" to rule in the issue.

At one point in the federation's deliberations, the prime candidates to host the conference were Tamunt N Iffus and Tamaynut in Agadir, Imal in Marrakech, Asidd in Meknès and Touiza in Tangier. Sources say the CMA voted on August 31st in favour of the Asidd Amazigh Association in Meknès. "Our application was supported by seven votes," said Khalid Zerrari, chairman of the Asidd Association and Vice-President of the CMA. "Only one vote went to Tangier, and there were two abstentions."

Fouad Al Omari, Chairman of the Twiza Association in Tangier, said although his association submitted a good offer, he accepted the CMA decision." They reminded us that the last CMA congress was held in the north of Morocco, in the city of Nador," he said. Another reason that sealed the deal for Meknès, Al Omari said, was that the CMA wanted this meeting to show support to the Amazigh students detained in Meknès.

Despite the agreement, the question was reintroduced by former CMA President Rachid Raha, with support from the founder of the banned Moroccan Amazigh Democratic Party, Ahmed Dgharni. The pair insisted that the federation should consider the decision made at the 4th congress to hold the next meeting in Tizi-Ouzou in Algeria. "According to CMA statues," said Raha, "it is the general assembly’s job to decide where the congress will be held. At the fourth conference, they made their decision, and the decision was that it would be held in Tizi-Ouzou. Only the federal council, apart from the congress, can change the venue. But the decision must be taken one year in advance."

The new argument created two camps; those in favor of Meknès and those supporting Tizi-Ouzou. Each side claims to have legitimacy on its side and is continuing preparations for the 5th congress. "We have called the two sides together so that they can meet and find a solution which will maintain unity in the Amazigh ranks," said Mohamed Handaine, chairman of Tamunt N Iffus. "We’re going to sit them down together round the table on October 11th and 12th in Agadir. The two parties have indicated that they are prepared to attend this meeting."

Since its first congress in Tafira (Canary Islands) in 1997, the CMA has held periodic congresses in Lyon (France), Roubaix (Lille, France) and Nador (Rif, Morocco).
http://www.magharebia.com/cocoon/awi/xhtml1/en_GB/features/awi/features/2008/10/09/feature-02
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FT highlights Morocco's achievements to promote business climate.
London, Oct. 9 (MAP)

British daily, the Financial Time stressed Morocco's achievements to improve the business climate, noting that the measures taken in this context have given a new impetus to the Casablanca stock market. Much has changed in the Moroccan business scene since the early days, the paper said, noting that in the 1990s, Moroccan companies - most of them either state or family-owned - believed they had little use for the services of an investment bank.

According to the FT, new laws aimed at attracting foreign direct investment and a series of privatizations have breathed life into the Casablanca stock exchange, which led to a mounting attention from both investors and local companies seeking to raise equity, even if it remains constrained by having a limited number of listed shares. On the back of economic reforms Morocco's all share index rose by 34 per cent in 2007, the FT pointed out, adding that this year, the index has fallen 2.3 per cent as even Casablanca, traditionally a relatively isolated market, has been hit by the global credit crunch.

The FT cited Upline group as one of the major investment banks in Morocco, which earned $6m last year on revenues of $18m, and is preparing to expand its balance sheet by seeking new institutional owners and listing on the Casablanca stock exchange. Quoting the group's executive director, Jalal Houti, the paper said the company is second biggest player in corporate finance, after CFG Group. It takes part in large transactions, he says, such as last year's sale of 20 per cent of CGI, a property developer, which raised almost $500m. http://www.map.ma/eng/sections/economy/ft_highlights_morocc/view
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Morocco achieves 'significant progress' in public finances, IMF.
Washington, Oct.8 (MAP)

Morocco achieved "significant progress" in public finance consolidation thanks to the good performance of public receipts and to the efforts made to tackle budget rigidity, International Monetary fund (IMF) said. In a report dubbed "medium-term budget policy scenario analysis", released on Tuesday, the IMF underlined that Morocco's budget deficit has been reduced by 4 GDP points during the last four years, which resulted in a near-balanced budget in 2007.

Morocco has achieved notable progress in improving the economic growth and its resilience to shocks, the document stressed, noting that these achievements reflect the quality of macro-economic policies and the sustained implementation of structural reforms as shown by the gradual improvement of living standards and per-capita income in the country.

The reversal of the budget performance is "particularly remarkable", said the document, recalling that in the 90s, Morocco's overall fiscal deficit amounted to 5.3% of GDP, while the total gross public debt equaled three-quarters of the GDP. The outstanding debt was reduced by 20 GDP points and currently stands at almost half of the GDP, thanks to a "cautious fiscal policy and to significant privatization receipts," the document explained. The situation, according to the IMF, has allowed for a sensible improvement in the perception of the quality of Morocco's performance and brought two major rating agencies to give Morocco the "investment grade." http://www.map.ma/eng/sections/economy/morocco_achieves__si/view
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Morocco model of religious coexistence, Jewish community representative.
Marrakech (South of Morocco), Oct. 9 (MAP)

The Jewish Moroccan community hailed, here Thursday, Morocco as being a model of religious coexistence and a land of tolerance and peace. The kingdom is and will always remain a model of coexistence between monotheistic religions and a land of peace and tolerance where the faithful can freely and respectfully worship, said Jacky Cadoch, President of the Jewish community in the region of Marrakech -Essaouira.

Speaking on the occasion of "Youm Kippour", Cadoch expressed the attachment of the Jewish community to Morocco. Yom Kippur also known as "the Day of Atonement" is a Jewish holiday marked by fasting and prayer for the atonement of sins.

Morocco counts a minority of Jews amounting to about 5,000 individuals living in the four corners of the North African country.
http://www.map.ma/eng/sections/social/morocco_model_of_rel8932/view
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Morocco's king launches offensive against radical Islam.
Rabat, Morocco

Islamic law allows men to wed girls as young as nine years, because marriages to younger women often work out better - or so claims Moroccan theologist Mohammed Maghraoui. The fatwa (opinion on religious law) issued by Maghraoui in Marrakesh in early September confirmed what King Mohammed VI already knew: that Islamist fundamentalism was on the rise in the traditionally relatively liberal north African country.

The Superior Council of Ulemas (Islamic scholars) condemned the fatwa, and Maghraoui's website as well as dozens of Koranic schools linked to him were closed. Some weeks later, just as Moroccans were marking the revelation of the Koran to Prophet Mohammed at the close of the holy month of Ramadan, King Mohammed launched his second religious reform. The faith of Moroccans needed to be preserved from 'extremist impulses,' the monarch said in the northern city of Tetouan, announcing a string of measures towards that end.

As the Amir al-Mu'amin or Commander of the Faithful, the 45-year-old king, who is believed to descend from Prophet Mohammed, is the official leader of Moroccan Muslims. The new reform followed an initial one carried out after Islamist militants killed 45 people, including 12 suicide bombers, in Casablanca in 2003. That reform restructured the Ministry of Islamic Affairs in an attempt to place preachers at the country's 40,000 mosques under tighter control.

Other measures have included revising Islamic textbooks and placing female instructors at mosques. The new reform establishes 69 regional or provincial councils of ulemas to guarantee 'spiritual security' and to preserve the 'tolerant Sunni Islam' that is part of the 'Moroccan identity,' as King Mohammed said.

The councils are to update the training of imams, whose medical benefits and living standards will also be improved, alongside those of other mosque personnel. A separate council of ulemas will watch over the more than 3 million Moroccans living abroad, whose situation as immigrants is seen as making them particularly vulnerable to extremism.

Morocco is trying to stem radicalism with a two-track approach, combining attempts to promote a tolerant brand of Islam with the detentions of thousands of extremist suspects. The arrests have elicited criticism from human rights groups, which say that the secret service has abducted dozens of suspects illegally, taking them to detention centres such as the ill-famed Temara near the capital Rabat. Police have also cracked down on non-violent Islamist movements, such as the non-parliamentary al-Adl w'al-Ihsan (Justice and Spirituality), which many analysts regard as Morocco's biggest de-facto political party.

Through the new reform, King Mohammed was emphasizing his position as the country's religious leader against 'self-proclaimed religious authorities,' Rachid Benzine, an expert based at the Aix-en-Province Institute of Political Studies, told the French daily Le Monde. It was difficult, however, for the palace to curb the spread of Islamic radicalism through the internet and some Gulf-based television stations, Benzine observed. Some radical preachers 'operate like Protestant tele-preachers,' he explained. 'In these conditions, nothing guarantees that the answers given (by the political authorities) have chances of being heard,' Benzine concluded. http://www.monstersandcritics.com/news/africa/features/article_1436121.php/Moroccos_king_launches_offensive_against_radical_Islam
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