Focus Areas and Objectives of Morocco's CPF (FY19-24)

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The Morocco Country Partnership Framework (CPF) for fiscal year 2019-2024 aims to contribute to social cohesion by enhancing job creation conditions and reducing disparities. The focus areas include transforming human capital, promoting inclusive and resilient territorial development, and fostering job creation and private sector growth. Objectives range from improving business regulatory environments to enhancing education and health systems, with a crosscutting emphasis on digitization and gender equality. The CPF also prioritizes governance and citizen engagement for transparency and public spending efficiency.


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  1. Morocco CPF (FY19 Morocco CPF (FY19- -24) Focus Areas and Objectives 24) Focus Areas and Objectives Overall Strategic Goal Contribute to Morocco s social cohesion by improving the conditions for job creation and reducing social and territorial disparities Focus Area 2 Focus Area 3 Focus Area 1 Transforming Human Capital Promoting Inclusive and Resilient Territorial Development Promote job creation and private sector growth CPF Objectives CPF Objectives CPF Objectives 1. Improve the business regulatory and competition environment Expand growth opportunities of the private sector, with a focus on MSMEs and youth employability Improve access to finance 4. Improve access to quality childhood development services 5. Improve quality and efficiency of education systems 6. Improve quality and efficiency of health delivery systems 7. Strengthen social protection for the poor and vulnerable 8. Enhance performance of systems of cities and towns 9. Improve water resource management and service sustainability 10. Strengthen adaptation to climate change and resilience to natural disasters 2. 3. Crosscutting: Digitization and Gender will be embedded in each focus area Foundation : Governance and Citizen Engagement CPF Objective 11: Improve Transparency and develop the building blocks for enhanced citizen-state engagement CPF Objective 12: Improve the efficiency of public spending

  2. Focus Area 1: Promote job creation and private sector growth Promote job creation and private sector growth This focus area will contribute to reviving job creation through private sector growth, by opening more opportunities for business and leveraging disruptivetechnologies, articulated around 3 objectives : (1) More efficient environment for business and competitiveness; (2) Increase opportunities for private sector growth, with a focus on MSMEs and youth employability; and (3) Improving access to finance. Objective 1: Improve the business regulatory and competition environment Objective 2: Expand growth opportunities of the private sector, with a focus on MSMEs and youth employability The WBG will seek to expand the growth opportunities of MSMEs, develop their capabilities to adopt and adapt disruptive technology to local contexts, open new markets, access key value chains, and contest markets at home, in Africa and Europe. The WBG will focus on creating more opportunities for existing MSMEs and start-ups, leveraging digital infrastructure for platforms, supporting market access (digital procurement, MFD), and enhancing the quality of business development services. Engagements will have special focus on youth and female entrepreneurs. WBG Support The World Bank Group (WBG) will contribute to improve business regulatory and competition environment, so that the wider private sector can compete with incumbents and leverage Maximizing Finance for Development (MFD). A combination of lending, advisory and analytical engagements across the International Finance Corporation (IFC) and the World Bank (WB) will seek to facilitate second generation business regulatory reforms, reduce the cost of doing business, support the digitalization of business services, and enable fairer competition with incumbents. It will relaunch the PPP agenda, including through targeted State-Owned Enterprise (SOE) reforms and the financing of their capex. It will pay close attention on strengthening the capacity to implement business reforms, particularly in relation to MFD and disruptive technologies. HOW HOW ASA: Ongoing Country Private Sector Diagnistic Improving connectivity Review of auto, aero and textile industries ASA: Pipeline Improvement of e- procurement system to support SMEs access to public contracts Entrepreneurship Ecosystem (IFC) Business Services for exporting MSMEs Financing: Ongoing Strengthening Agri Value Chains Financing Startups and Innovative MSMEs Financing: Pipeline Youth Economic Inclusion IFC-co-investment with Moroccan companies Nador West Med Economic Corridor Financing: Ongoing - Competitiveness Development Policy Loan (DPL) Financing: Pipeline DPL Financial Inclusion and Digital Economy (FY19) P4R (MFD/PP) (FY20) ASA: Ongoing Country Private Sector Diagnostic Maghreb Infrastructure Diagnosis (MID) /SOE Reform (ONCF) Emerging Digitech ASA: Pipeline Develop capacity of competition council Support of CNEA (IFC) Compact with Africa: Business framework

  3. Focus Area 1: Promote job creation and private sector growth Focus Area 1: Promote job creation and private sector growth Objective 3: Improve access to finance The Country Partnership Framework (CPF) will support Morocco s policy initiatives on financing MSMEs and support its wider financial inclusion agenda with a view to foster economic formalization. Engagements will support the implementation of the new national financial inclusion strategy, esp. reducing the wide gender gap, and diffusion of digital financial services through enhanced contestability. IFC and Bank will work jointly toward diversification of financing solutions for MSMEs beyond traditional banking. HOW ASA: Ongoing National Financial Inclusion Strategy Enabling Payment Innovations ASA: Pipeline Joint Capital Market Development Initiative Supply Chain Finance (IFC) Digital Collateral Registry (IFC) Financing: Ongoing -Capital Market Development and SME finance (DPL) Financing: Pipeline DPL Financial Inclusion and Digital Economy (FY19) Leasing Company for Rural Value Chains (IFC)

  4. Focus Area 2: Transforming Human Capital Focus Area 2: Transforming Human Capital Transforming Morocco s human capital is widely seen as an imperative to accelerate growth and convergence as well as to contribute to social cohesion. The focus area will concentrate on interventions that promote quality and efficiency in the delivery of education and health services, establishment of a robust cutting-edge social protection system along with improving the effectiveness of early childhood development. The CPF will aim to achieve greater inclusion of women, youth and vulnerable. Objective 4: Improve access to quality childhood development services Objective 5: Improve quality and efficiency of education systems The CPF program will aim at supporting enhanced Early Childhood Development outcomes in education, health and nutrition, and aim at laying a stronger foundation for holistic development in the early years and for subsequent human capital acquisition throughout the life cycle. They are also crucial in facilitating the acquisition of socio-emotional skills required by the labor market of tomorrow. This will be achieved through a multi-sectoral approach addressing both supply and demand constraints and focused on reducing the gender and location gaps in early childhood outcomes. The CPF program will support Government s Vision 2015-2030 with a particular focus on improving the efficacy and efficiency of the learning process with a view to impacting the key determinants of learning outcomes. This will include in particular the overhaul of the teacher management policies to ensure that teachers are recruited, allocated and trained in ways that promote the acquisition of basic skills such as literacy and numeracy with a focus on the early grades. The WBG program will also support improvements in the governance of the education system by building the capacity of the regional academics and providing support to school based management mechanisms. HOW HOW Financing: Ongoing -Health (PforR) Financing: Pipeline Education support Program (PforR) Health Operation INDH3 ASA: Ongoing Human Capital Project Policy Dialogue Financing: Pipeline -Education Support Program (PforR) ASA: Ongoing -Human Capital Project Policy ASA: Pipeline Support to Human Capital for Vulnerable Children Skills for the Future ASA: Pipeline Support to Human Capital for Vulnerable Children Skills for the Future

  5. Focus Area 2: Transforming Human Capital Focus Area 2: Transforming Human Capital Objective 6: Improve quality and efficiency of health delivery systems Objective 7: Strengthen social protection for the poor and vulnerable Building on the Government s health sector Vision of 2025 and the goal of achieving Universal Health Coverage (UHC), the CPF program will support (i) enhancing health service delivery through strengthening human resources policy and expanding medical coverage, improving quality of health care services at different levels of health facilities, and continuing the support of primary health care with a focus on rural areas; (ii) strengthening governance and increasing transparency and accountability in the health sector, and (iii) improving health financing system toward expanding financial protection. The WBG will continue to support Government s initiative in developing the service delivery infrastructure of the Social protection program by operationalizing national population registry and social registry. This will help simplify access to Social Protection (SP) programs, harmonize intake, improve targeting, as well as improve outreach and reduce error. The CPF will also explore opportunities to expand SP programs particularly in second generation reforms focused on improving financial inclusion of the poor, incorporating well targeted cash transfer program, reform subsidies and create fiscal space to cover some of the groups that are not covered by the Social Security Number (SSN). HOW HOW Financing: Ongoing -Health Sector Support (PforR) Financing: Pipeline Health Operation INDH3 ASA: Ongoing Health PHRD Grant Financing: Ongoing -Identity and Targeting for Social Protection ASA: Pipeline Maghreb Policy Dialogue Human Capital Project Policy Dialogue. ASA: Pipeline Support to Human Capital for Vulnerable Children Human Capital Project Policy Dialogue Health Policy Dialogue

  6. Focus Area 3: Promoting inclusive and resilient territorial development Focus Area 3: Promoting inclusive and resilient territorial development This focus area contributes to promote inclusive and resilient territorial development through interventions enhancing the performance of the urban system, reducing territorial disparities at different spatial scales, improving sustainability of water resource management in addition to strengthening resilience of the poor and vulnerable to adapt the impacts of climate change and natural disasters. Objective 8: Enhance performance of systems of cities and towns The CPF program will support the government to strengthen urban planning, management, governance and systems of cities. In support of the urbanization process, the WBG engagement will include: (i) linking citizens (including poor, women, and people with limited mobility) to economic opportunities; ii) boosting municipal capacity to deliver urban services and infrastructure with special attention to underserved neighborhoods; iii) improving urban mobility; and (iv) strengthening capacity for mobilizing and managing financing, governance, and public and private investment for urban infrastructure. In parallel, IFC will help set up a new model for municipality finance and will work with national and sub-national governments on structuring public private partnerships transactions for efficient infrastructure delivery. HOW Financing: Ongoing Casablanca Municipal Support Program Morocco Urban Transport Support to Local Government Financing: Pipeline Support Program to Cities (IFC-WB) Nador-West Economic Corridor Urban Transport Additional Financing (AF) ASA: Pipeline Transport and Jobs Urbanization Review Nador West Med Study Rural Development Policy Note

  7. Focus Area 3: Promoting inclusive and resilient territorial development Focus Area 3: Promoting inclusive and resilient territorial development Objective 9: Improve water resource management and service sustainability Objective 10: Strengthen adaptation to climate change and resilience to natural disasters The WBG will provide a multi-pronged strategy to address the sustainability of water resource management by developing a policy note on adapting water resource management to the changing future. It will also promote access to safe drinking water and sanitation services in the underserved rural communities. The program will also support the efficiency and sustainability of key water institutions in charge of water service delivery, and irrigation. The CPF will also explore opportunities in increasing the mobilization of the private sector. The WBG will provide integrated approach to improve climate and disaster resilience in Morocco. The WB has developed a comprehensive program to support the government s climate change agenda by developing a disaster risk information system, strengthening the risk reduction and financing instruments to facilitate Morocco s access to emergency financing in case of disaster. The CPF program will also support i) the adoption of climate smart and digital technologies to enhance the productivity and diversification in agriculture; and ii) the promotion of sustainable blue economy. HOW HOW ASA: Pipeline Morocco Water Sector Management Nexus Water Energy- Agriculture Financing: Ongoing Rural Water Supply Large Scale Irrigation Modernization Project Financing: Pipeline Program to Improve Water and Sanitation System Performance Desalination PPP (IFC) Financing: Ongoing Integrated Disaster Risk Management and Resilience Large Scale Irrigation Modernization Social and Integrated Agriculture Strengthening Agri Food Value Chains Financing: Pipeline Catastrophe Deferred Drawdown Option (CAT DDO) Smart and Digital Agriculture Program Integrated Coastal Zone Management and Sustainable Development of Blue Economy ASA: Ongoing Partnership for Market Readiness (PMR) ASA: Pipeline Agriculture Sector Insurance Technical Assistance (TA)

  8. Foundation : Governance and Citizen Engagement Foundation : Governance and Citizen Engagement Objective 11: Improve Transparency and develop the building blocks for enhanced citizen-state engagement The WBG support will be provided to generate data/evidence/analysis that can inform public policy debate and ensure that mechanisms are in place to provide open access to data at the appropriate levels for accountability and transparency. The WBG will also support recent Government efforts to enhance the implementation of new rules allowing citizens greater voice in the policy and program deliberations in Parliament. To generate sufficient trust for citizens to engage via these new openings, efforts to promote concrete citizen feedback and engagement in both territorial development and service delivery, will be pursued. HOW ASA: Ongoing Maghreb Governance and Political-Economy Filter Public Investment Management Reform Measure and manage fiscal risks 2nd stage of the pension reform ASA: Pipeline Compact with Africa PPP/SOE reform IFC Corporate Governance Framework Tax Administration Diagnostic Assessment Tool Strengthening the framework and practices of public procurement Financing: Ongoing -Support for new governance framework (grant) - Parliament Capacity Project (grant) Financing: Pipeline Governance, Statistics Operation (Public Finance Management (PFM); Public Investment Management (PIM) & Procurement activities included)

  9. Foundation : Governance and Citizen Engagement Foundation : Governance and Citizen Engagement Objective 12: Efficiency of public spending The Bank will offer a suite of services, including financing, technical assistance, advisory services, and convening power to support Morocco in the following areas: development of e-government, including the digitization of Public Financial Management systems and processes; design and implementation of a coordinated framework for managing Morocco s public investment portfolio with a view to improve its allocative efficiency; reform of governance and control framework of SOEs, both at the macro level and in specific sectors where SOEs deliver critical social services; budget reform and the roll-out of program-based budgeting; support to procurement system, and tax and pension system reform. HOW ASA: Ongoing Maghreb Governance and Political-Economy Filter Public Investment Management Reform Measure and manage fiscal risks 2nd stage of the pension reform ASA: Pipeline Public Expenditure Review (PER) Reform of PPP / SOE - Compact with Africa IFC Corporate Governance Framework Tax Administration Diagnostic Assessment Tool Strengthening the framework and practices of public procurement Financing: Ongoing -Support for new governance framework (grant) - Parliament Capacity Project (grant) Financing: Pipeline Governance, Statistics Operation (PFM, PIM & Procurement activities)

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