Morocco and the Millennium Challenge Corporation signed a five-year, $697.5 million Millennium Challenge Compact to reduce poverty and increase economic growth in the Kingdom of Morocco.  The program seeks to stimulate economic growth by increasing productivity and improving employment in high potential sectors including investments in fruit tree productivity, small-scale fisheries, and artisan crafts.  Small business creation and growth will be supported also by investments in financial services and enterprise support.  See Projects for descriptions of the Compact. components.

Expected Results

The Program has the potential to stimulate growth in high potential sectors. The Program is expected to increase Morocco’s GDP by approximately $118 million annually and directly benefit a total of 600,000 families. 

• The Fruit Tree Productivity Project is expected to improve the livelihoods of approximately 136,000 farm households in rural areas of the northern, central and southern regions of Morocco. In addition, terrace construction is expected to create economic opportunities for approximately 11,000 agricultural laborers.
• The Small-Scale Fisheries Project is expected to benefit approximately 24,000 small-scale fishers, boat owners, wholesale fish merchants, and mobile fish vendors. It is estimated that mobile fish vendor net incomes will increase approximately 62%, enabling the vendors to exit subsistence-level poverty.
• The Artisan and Fez Medina Project’s literacy and training program is expected to benefit 1,000 faculty and approximately 120,000 students by the end of the Compact term. It is expected that 50,000 master artisans will be trained in new design and production methods by the end of the Compact term. This project’s activities are expected to reduce poverty by stimulating the Medina’s main industries, tourism and artisan production, and are estimated to benefit approximately 20,000 low-income workers in the Fez Medina.
• With the Financial Services Project, MCC projects that up to 174,000 additional clients of micro-credit associations will benefit by the end of the Compact term.  These people would borrow and invest in small, high-return investments to significantly increase their incomes. 
• During the pilot phases of the Enterprise Support Project, approximately 600 entrepreneurs will receive training. If the pilot succeeds and is expanded, up to 4,000 enterprises created under Moukawalati could receive technical assistance and up to 2,000 INDH groups could receive similar support.
  

Morocco was named eligible for Millennium Challenge Compact assistance on November 8, 2005.