Morocco Compact

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A Change in Fortune

Artisans in Morocco have upgraded cramped, unsafe workspaces in a centuries-old building in Fez for a new location that features spacious workshops and a central courtyard to sell to tourists. One coppersmith calls it paradise.

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More than Letters and Numbers

More than 30,000 adults across Morocco attended MCC-funded literacy classes, with coursework tailored to people in the fishing, agriculture and handicrafts industries. As students studied, they also learned valuable skills to help them with their jobs.

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One Institute: Many Dreams

MCC’s Artisan and Fez Medina Project is helping about 2,100 student study traditional handicrafts at in Fez, Morocco. Students are attending classes to prepare them for careers in carpentry, ironwork, ceramics, leather, and textiles.

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In August 2007, the Millennium Challenge Corporation signed a five-year, $697.5 million compact with the Kingdom of Morocco to reduce poverty and stimulate economic growth through investments in five projects. These strategic investments will increase productivity and improve employment in high potential sectors such as fruit tree productivity, small-scale fisheries, and artisan crafts. Small business creation and economic growth will also be supported by investments in financial services and enterprise support. The compact in Morocco entered into force (EIF) in September 2008, formally initiating the five-year timeline for project implementation.

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as of March 31, 2013

  •  Total Grant Value:
    $697,500,000
  •  Total Amount Committed:
    $633,943,450 (91%)
  •  Total Amount Expended:
    $452,941,439 (65%)
    Expenditures are the sum of cash outlays and quarterly accruals for work completed but not yet paid or invoiced.
  • Signed:
    August 31, 2007
  • Entry into Force:
    September 15, 2008

This project aims to stimulate economic growth by leveraging the links between the craft sector, tourism, and the Fez Medina’s rich cultural, historic and architectural assets. This project will strengthen the national system for literacy and vocational education to benefit artisans and the general population, in particular women and girls.

  • Enable artisans to increase the quality of their goods by supporting access to training in modern production techniques and business management;
  • Access to bank or micro-credit loans to invest in modern kilns and pottery workshops;
  • Serve local residents, attract tourists and increase artisan sales in Fez; and
  • Support the design and reconstruction of historic sites within the Fez Medina, including the funding of an international architectural design competition for two of the most prominent sites.
  • Project Amount: $111,870,000.00

This project aims to reduce high unemployment among young graduates and to encourage a more entrepreneurial culture.

  • Three pilots will measure the impact of several training initiatives offered to current beneficiaries of the Government programs who would receive further training and technical assistance designed to increase their rate of survival;
  • Training initiatives will be expanded beginning in Year 3 of the Compact; and
  • The Government agency sponsors of the programs will receive support to help them better manage the selection and training processes for these entrepreneurs.
  • Project Amount: $33,850,000.00

This project aims to increase financial services for micro-enterprises in Morocco by addressing the key constraints to the development of a broader, deeper, and market-based financial sector.

  • Invest in the subordinated debt tranche of Jaida, a non-bank financial institution launched in late 2006, to lend to the Moroccan micro-credit sector;
  • Analyze the regulatory and operational requirements to allow micro-credit associations to change their legal structure in order to offer savings and other non-credit financial services to their customers; and
  • Support investments and technical assistance to improve efficiency and transparency in the financial sector in an effort to lower borrowing costs on a sustainable basis for micro-enterprises.
  • Project Amount: $46,200,000.00

This project aims to stimulate growth in the agricultural sector and reduce volatility of agricultural production.

  • Rehabilitate existing olive trees and expand production of olives and almond trees;
  • Move small farms from high water-use, low-value cereal grains to low water-use, high-value and drought resistant commercial fruit tree species; and
  • Support improvements to increase irrigation efficiency and productivity of olive and date trees.
  • Project Amount: $300,900,000.00

This project aims to transform the small-scale fisheries sector by modernizing the means of catching, storing, and marketing fish, thereby improving the quality of the catch, maintaining the value chain, and increasing fishers’ access to both local and export markets.

  • Construct landing sites along both coasts, to construct or upgrade fishery facilities in major ports, and to build or re-build modern wholesale markets in selected cities;
  • Provide technical assistance and training required to ensure proper management and to partially fund the acquisition of fresh-fish transportation equipment by mobile fish vendors; and
  • Establish a network of Marine Protected Areas and increase monitoring efforts to ensure the sustainable use of fish resources.
  • Project Amount: $116,170,000.00