measures planned to encourage the private sector to increase investment

After approval by the Council of Ministers, the draft law concerning the new Investment Charter was submitted to the House of Representatives. The legislative examination phase begins, and MEPs will have their say during discussions both in the competent committee and in plenary sessions. This long-awaited reform, which was supposed to be developed during the previous legislative session, aims to solve a fundamental problem from which our country suffers: to increase the share of private investment, national and international, in the total amount of investments made. It should be remembered that the private sector invests little compared to the state, which remains the main investor in Morocco with a share of 65%. According to government data, the private sector invests only 100 billion dirhams each year, which has a very low socio-economic impact.

To encourage private initiative, the new Charter upholds six basic principles of a liberal economy, namely, freedom of enterprise; – free competition and transparency; – equal treatment of investors regardless of their citizenship; – legal certainty; – principles of proper management.

Bonuses for investors

To this end, the Charter relies heavily on regions to contribute to these goals. According to Article 8, the state undertakes to support investment through joint bonuses, provided that the total amount or number of stable jobs to be created is equal to or exceeds the threshold values ​​established by law.

The law also provides for “additional bonuses” that are granted to projects that are implemented in regions or aimed at “priority industries”, such as industry. On the other hand, the agricultural sector is not regulated by the Investment Charter. In addition, any investment project, which is the subject of an investment agreement concluded with the state, enjoys tax and customs benefits under the conditions stipulated by current legislative and regulatory acts. The calculation base and premium rates will be fixed by regulations. There is no doubt that they can be combined with each other within 30% of the acceptable investment amount.

In addition, the Charter is aimed primarily at SMEs and VMPs, the state undertakes to facilitate their access to bank financing and especially to public procurement.

The state also undertakes to facilitate investors’ access to easily mobilized land at competitive prices. At the same time, companies will have capacities in terms of the functioning of industrial, logistics, commercial, tourist and service zones that meet their needs. They will also have easier access to land for investment projects that create added value and sustainable jobs. In addition, the state must offer the entrepreneurial structure all the conditions that contribute to their success, namely training adapted to their needs, access to new technologies, as well as a more accessible and more digitized administration.

New guarantees for foreign investors

In its desire to encourage FDI, the state tries to appease foreign investors with a series of guarantees, including “transfer of profits net of taxes without limit on amount or duration.” The state also provides them with the opportunity to transfer proceeds from the sale or total or partial liquidation of investments, including capital gains.

On the other hand, the Charter aims to encourage the development of Moroccan companies at the international level, and this by providing for a special support system, the conditions of which will be established by a regulatory act.