Morocco’s development challenges include insufficient productivity growth, high youth unemployment (37% in 2024), and low female labor force participation (19%), with structural constraints limiting firm dynamism and investment. The CPF focuses on three outcomes: improving firm productivity and competitiveness, fostering inclusive and resilient territories, and strengthening human capital. Key interventions include reforms to strengthen competition, support MSMEs with financing and skills development, promote territorial integration through infrastructure and local economic ecosystems, and enhance human capital via education and health system reforms. The CPF prioritizes sectors with high job creation potential (energy, infrastructure, healthcare, agribusiness, tourism, manufacturing) and leverages private sector solutions through IFC and MIGA. The program envisions an indicative IBRD envelope of about US$15 billion, with IFC and MIGA mobilizing private investment and providing guarantees. Risks include macroeconomic pressures, stakeholder disagreements, and institutional capacity challenges, which will be mitigated through policy dialogue, stakeholder engagement, and strengthened coordination. The CPF adopts an adaptive management approach with annual reviews and data-driven adjustments.
