World Bank approves $600 million to boost public sector performance in Morocco

The World Bank approved $600 million (5.96 billion dirhams) to fund two programs in Morocco focused on strengthening public sector performance, inclusivity, and public service quality.

A press release issued in Washington on Monday detailed the programs. The first, a $350 million project, supports the implementation of public enterprise and establishment (PEE) reform. It aims to improve governance, restructuring, competitive neutrality, and performance monitoring of these entities.

Additional funding of $250 million goes towards the «Moroccan Public Sector Performance» program (ENNAJAA). This program continues to support the Moroccan government's efforts in improving performance and transparency through modernizing public administration via digitization and public finance management reforms.

«These projects aim to improve public sector performance and the quality of public services delivered to Moroccan citizens, aligning with Morocco's new development model», said Jesko Hentschel, World Bank Country Director for Maghreb and Malta, according to the press release.

The World Bank will assist the Moroccan government throughout the PEA reform, focusing on results and strengthening the technical and implementation capacity of relevant agencies. This includes the Ministry of Economy and Finance, its Directorate of Public Enterprises and Privatization (DEPP), and the newly created National Agency for Strategic Management of State Holdings and Monitoring the Performance of Public Establishments and Enterprises (ANGSPE). The World Bank will also encourage coordination between these entities.

The initial ENNAJAA program has already yielded «significant» results after nearly two years. These include a near 7% increase in additional tax revenue due to improved national compliance and a 22% rise in revenue collected by the ten largest municipalities.

According to the World Bank, the additional ENNAJAA funding will prioritize improving public spending efficiency and revenue management. This includes increased budget transparency for citizens concerning public expenditures. The program will also facilitate the adoption of climate-responsive budgeting, a first in Morocco, and gender-responsive budgeting for eight ministerial departments by the project's completion in 2028.