Morocco has announced a significant 42% annual increase in government infrastructure projects for this year, with investments reaching 64 billion Moroccan dirhams ($6.3 billion).
The projects span various sectors, including water, ports, roads, and government buildings.
This surge in government investment in infrastructure construction is part of efforts to rebuild areas affected by last September’s earthquake, prepare for the 2030 World Cup and the 2025 African Nations Cup, and implement a partnership agreement signed with the UAE last year.
This agreement will fund several projects within the kingdom, according to Nizar Baraka, Morocco’s Minister of Equipment and Water, during a press conference.
The construction and public works sector, which accounts for about 6% of the country’s GDP and employs around one million people, heavily relies on government contracts, with 75% of the 7,000 licensed companies in this field depending on such deals.
The anticipated investments include the construction of dams, linking water basins, desalination plants, and water-saving measures, with a preference for local companies to undertake these projects, Baraka stated in an interview with “Al-Sharq”.
Government building projects will receive the largest share of these investments, amounting to approximately 24.6 billion dirhams, covering the construction of hospitals, stadiums, universities, and ministry offices.
The water sector is allocated about 14.7 billion dirhams, while road construction and repair will cost 14.2 billion dirhams, and the port and maritime sector will receive 10.7 billion dirhams.
The government projects set to launch this year are expected to inject an additional total of 330 billion dirhams into the Moroccan economy, representing about a quarter of the GDP, as per the Moroccan minister during a press conference dedicated to presenting the investment program for companies.
Private companies in the construction sector are closely tied to public contracts, as the government funds two-thirds of the country’s total investments.
Last year, Morocco adopted a charter offering financial and tax incentives to private sector investors, aiming to increase private investment to two-thirds by 2035.
Mohamed Mahboub, head of the National Federation for Construction and Public Works in Morocco, told “Al-Sharq” that the government investment planned for this year is “very significant” and will support companies that have suffered in recent years.
Since 2020, construction companies have faced multiple crises, including reduced demand during the COVID-19 pandemic, rising building material prices, and supply chain disruptions due to the Russia-Ukraine conflict, affecting project execution and leading to contract terminations, confiscation of guarantees, and financial penalties for delayed deliveries.
Minister Nizar Baraka emphasized that the new government projects would improve the economic situation of thousands of companies, create more job opportunities, and contribute to the country’s economic and social dynamism.
The head of the National Federation for Construction expects the volume of government infrastructure projects to continue growing, reaching 80 billion dirhams ($7.9 billion) next year and continuing to rise until the end of the decade, in preparation for hosting the 2030 World Cup alongside Spain and Portugal.
