The World Bank's Board of Directors has approved US$600 million for Morocco to finance two projects aimed at improving public service delivery, inclusiveness, and the performance of the public sector.
The first project, 'Supporting the Implementation of SOE Reform in Morocco' (US$350 million), is designed to enhance the governance, restructuring, competitive neutrality, and performance monitoring of state-owned enterprises (SOEs). This will be achieved by strengthening state-ownership functions, improving SOE governance and management practices, fostering performance monitoring—including climate impacts—and providing a framework for fair competition.
Additional financing for the 'Public Sector Performance' (ENNAJAA) program (US$250 million) will continue supporting the Moroccan government's efforts to enhance performance and transparency. The focus will be on modernizing public administration through digitization and reforms in public financial management.
"The ultimate aim of these two projects is to enhance the performance of the public sector and elevate the quality of public services delivered to Moroccan citizens. This is in line with Morocco's New Development Model, which stresses the need for a paradigm shift to promote inclusive, private-sector-led growth," said Jesko Hentschel, Country Director for the Maghreb and Malta at the World Bank.
The World Bank has supported the Moroccan government in initial stages and implementation of SOE reform by focusing on results. Efforts have included strengthening reform implementation capacity within both implementing agencies—the Ministry of Economy and Finance and the newly created state ownership agency—and encouraging coordination. These initiatives have already yielded measurable results such as an increase in women's representation on SOE boards from nearly none to 30 percent, greater competitive space for the private sector, and inclusion of climate reporting.
"The reform of SOEs is high on Morocco's agenda, as highlighted by the last Council of Ministers chaired by His Majesty King Mohammed VI on June 1. With a vision of a prosperous Morocco, the aim is to reconfigure the public portfolio, improve its performance, and carry out reforms to ensure accessible, high-quality public services to people," added Jesko Hentschel.
Regarding public sector performance after almost two years of implementation, initial ENNAJAA program results include nearly a 7 percent increase in additional tax revenues through better compliance at national level and a 22 percent increase in revenues collected by ten largest municipalities at subnational level.
This additional financing for ENNAJAA program will prioritize improving efficiency in public spending and revenue management. It includes greater budget transparency for citizens on public spending as well as adoption of climate-sensitive budgeting—a first in Morocco—and gender-sensitive budgeting across eight ministerial departments by end of project in 2028.