Morocco is set to receive a grant of US $180M to boost agriculture. The loan which was approved by World Bank aims to enhance the governance of water in agriculture, and improve the quality of irrigation services, as climate change is putting increased pressure on water resources in the North African country.
Morocco witnessed during this year a severe drought and heat waves, which affected the sector. The country’s central bank expected last week that Morocco’s economy will grow by 0.7% in 2022, down from 2.9% in the earlier forecast and the 7.3% growth in 2021.
Agriculture contributes almost 15% to Morocco’s GDP, and combined with the fishing and forestry sectors employs about 45% of Morocco’s workforce. It has an outsized impact on the economy due to highly variable rain-irrigation-based grain production, its role as an employer, and its role as a major export industry.
Traditional technologies
Many Moroccan agricultural producers continue to use traditional technologies and have limited access to production inputs such as fertilizers, pesticides and mechanization. The prevalence of small farms, complicated land title issues, and increasing land prices pose serious challenges to agricultural policy makers.
Policy makers struggle with the conflicting principles of economies of scale, the capitalization requirements necessary to modernize the agricultural sector, and the desire to alleviate poverty and maintain the social structure of traditional rural society.
In February 2020, the Government of Morocco launched its second strategic plan for agriculture. The new plan, called “Generation Green,” sets out an agricultural development strategy through 2030. It has two pillars:
