Morocco Compact

In 2006, when the Millennium Challenge Corporation and the Government of Morocco began development of their first partnership to reduce poverty, the Moroccan economy had seen 30 years of relative macroeconomic stability but slow growth, which led to consistently high unemployment. The Moroccans sought to stimulate economic growth by investing in high potential sectors where they had competitive advantages and could increase employment.

MCC and Morocco signed a five-year, $697.5 million compact in August 2007 that invested in five project areas based on Morocco’s own national growth strategy. This strategy was designed to modernize industrial sectors and target areas where the country had competitive advantages, such as textiles, agribusiness, fishing and handicrafts. The compact ultimately focused on: 

  • fruit tree productivity;
  • small-scale fisheries;
  • artisan training and urban market rehabilitation;
  • financial services; and
  • enterprise support.

At the end of the compact in September 2013, the Government of Morocco and MCC had spent 93 percent of the available funds to increase productivity and improve employment in these high-potential sectors with almost 1.7 million people expected to benefit. Further details of the compact results and impacts are shared in independent evaluations, which are discussed below. 

  • Original Amount at Compact Signing: $697,500,000
  • Amount spent: $649,370,442
  • Signed: August 31, 2007
  • Entry Into Force: September 15, 2008
  • Closed: September 15, 2013

Estimated benefits at compact close correspond to $649.4 million of compact funds, where cost-benefit analysis was conducted:

  • 1,694,645Estimated beneficiaries at compact close over 20 years

  • $307,500,000Estimated net benefits at compact close over 20 years

Compact Changes

The Morocco Compact included significant capital investments in infrastructure and capacity building. Because MCC compacts are fixed amounts and executed over no more than five years, partner governments must maintain focus on obtaining results while constantly balancing changes to costs and the rate of implementation. During the compact, MCC and the Government of Morocco made mutually agreed-upon adjustments to compact targets, including:

  • Reducing the area of the Rain-fed Olive and Almond Tree Rehabilitation and Expansion Activity from 120,000 to 62,149 hectares; increasing the Olive Tree Irrigation and Rehabilitation Activity area from 25,600 to 34,100 hectares; and increasing the Date Tree Irrigation and Rehabilitation Activity area from 16,000 to 19,400 hectares. The Government of Morocco later funded 19,322 additional hectares of olive orchards to reinforce the Olive Tree Irrigation and Rehabilitation Activity.
  • Reducing the scope of the Fez Medina Activity by $21.2 million and reallocating funds to the Catalyst Fund, a new activity intended to stimulate private sector investment in the olive oil value chain.
  • Enlarging the scope of the $32.8 million Literacy and Vocational Education Activity in the Artisan and Fez Medina Project to expand literacy initiatives across the entire compact.
  • Restructuring the Small-Scale Fisheries Project from 20 landing sites to 11, from 13 ports to 11, and from six wholesale markets to five.
  • Closing the Enterprise Support Project in May 2012. After a rigorous impact analysis of the pilot phase, the resulting data did not show statistically significant impacts and the revised economic rate of return did not justify scaling up the project for a second phase.
  • Reallocating funds from a $4.5 million sub-activity in the Financial Services Project designed to es­tablish a database of compact-supported sectors to increase the Jaida Microfinance Investment Fund loan from $25 million to $30 million.

In April 2012, after a rigorous technical assessment of progress and remaining challenges in the renovation of Place Lalla Yeddouna as part of the Fez Medina Project, MCC transferred financial obligation to the Government of Morocco, which has contracted the works. Construction is ongoing and is expected to be completed at the end of 2016.      

Project Results

Enterprise Support Project

  • $33,850,000Original Compact Project Amount
  • $15,126,518Total Disbursed
  • -0.9%Estimated Economic Rate of Return over 20 years

The Government of Morocco proposed the Enterprise Support Project to help with two of its critical economic priorities: reduce high unemployment among young graduates and encourage a more entrepreneurial culture. High levels of unemployment in Morocco stem from modest formal sector employment generation and a burgeoning labor supply. While the overall unemployment rate in Morocco hovers around 10 percent, youth unemployment in recent years has risen to approximately double that amount. The objective of the Enterprise Support Project was to improve the outcomes of two existing high-priority Government of Morocco initiatives: Moukawalati, which translates as “My Small Business,” a national program intended to address high youth unemployment rates and drive Morocco’s businesses to be more entrepreneurial and competitive in the face of globalization; and the National Initiative for Human Development, a multi-year initiative aimed at creating opportunities for the poor, vulnerable and socially excluded. The project was designed to be carried out in two phases, with continuation of the second phase subject to positive results from an impact evaluation of the first phase. The pilot phase was completed in March 2012; although it met its implementation targets and showed promising trends, the impact evaluation did not show statistically significant impacts and  the revised economic rate of return did not justify scaling up the project for a second phase. MCC did not continue with a second phase and the project was closed in May 2012. 

Estimated benefits at compact close correspond to $15.1 million of project funds, where cost‑benefit analysis was conducted:

  • 13,520Estimated beneficiaries at compact close over 20 years
  • $700,000Estimated net benefits at compact close over 20 years

Evaluation Findings

MCC has completed impact evaluations of the Support to Income-Generating Activities Activity and the Support to Small Businesses Activity. The Summaries of Findings can be found here. Key findings for the Support to Income-Generating Activities (IGA) Activity include:

  • The impact evaluation found that average declared profits were 78% greater for treatment group IGAs than for control IGAs.
  • Although there were no measurable impacts on overall household income, IGA-supported households were less often in debt, had higher consumption and higher perceived levels of life satisfaction.

Key findings for the Support to Small Business Activity include:

  • According to the evaluation, program implementation was effective, with participating businesses receiving a unique offering of training sessions.
  • Overall, 74.5% of selected businesses dedicated time to training, compared to only 11.5% of firms in the Control group. 
  • As a result of the program, business closure rates decreased by 30%.
  • However, two years after program completion, beneficiaries and their households were not impacted in terms of economic performance indicators, such as total sales, profits, or investment expenses.

Key performance indicators and outputs at Compact End Date

Key performance indicators and outputs at Compact End Date
Activity/Outcome Key Performance Indicators Baseline End of Compact Target Quarter 1 through Quarter 20 actuals (Dec. 2013) Percent Compact Target Satisfied (Dec. 2013)
Pilot Phase: Enterprise Support ANPME/OFPPT/INDH Training Activity

Outcome: Training and post- creation technical assistance to new entrepreneurs in the Moukawalati and income- generating activities/INDH programs

Beneficiaries trained 0 593 661 111%
Days of individual coaching 0 9,112 8,404 92%
Reduction in SME mortality (treatment firms with respect to control firms) one year after support completion (%) 0 20 30 150%

Fruit Tree Productivity Project

  • $300,898,447Original Compact Project Amount
  • $323,369,991Total Disbursed
  • 19.8%Estimated Economic Rate of Return over 20 years

Many farmers in Morocco, a country where labor is abundant and inexpensive while water is scarce and costly, grow wheat and other grains that are subject to volatile water availability and consequent highly variable production. The Government of Morocco has instead encouraged the planting of more productive perennial tree crops such as olives, almonds and dates that are better suited for Morocco’s climate and resources. However, Moroccan farmers have been traditionally unable to mobilize the resources necessary to modernize and make the transition to higher-value perennial crops due in part to a lack of financing, information and access to markets. Aligned with the Moroccan government’s agricultural policy and developed in conjunction with the Ministry of Agriculture, the Fruit Tree Productivity Project was designed to:

  • stimulate growth in the agricultural sector by moving from high water-use, low-value cereal grains to low water-use, high-value commercial fruit tree species;
  • reduce volatility of agricultural production and farm revenues by expanding the area of commercial tree species better positioned to handle moisture stress;
  • protect the natural resource base by eliminating wheat production from hillsides and replacing it with trees that reduce erosion and conserve soil; and
  • organize and link extremely poor, small-holder farmers to high-value markets.

By the end of the compact, more than 40,000 farmers were trained, 60,084 hectares of olive and almond trees were planted, 114 olive and date value-chain processors were assisted, and $18.6 million was disbursed under the Catalyst Fund to stimulate private sector investment in the olive oil value chain. 

Estimated benefits at compact close correspond to $323.4 million of project funds, where cost‑benefit analysis was conducted:

  • 574,111Estimated beneficiaries at compact close over 20 years
  • $180,300,000Estimated net benefits at compact close over 20 years

Evaluation Findings

MCC is conducting a performance evaluation on the Olive Plantation Expansion in Rain-Fed Areas Activity, which is expected to be available in August 2015. The evaluation will estimate the impact on beneficiaries’ revenues; the expected returns, costs and net margin obtained from a hectare of olive trees; and the overall economic rate of return of the Fruit Tree Productivity Project by activity. An interim performance and impact evaluation on the Rain-Fed Olive Tree Rehabilitation Activity is also expected in August 2015, with the final report expected in 2018. These evaluations will measure the strengths and weakness of the implementation of the program, the adoption rate of promoted techniques, the production volume and value and the impact of the rehabilitation of the olive trees on farmers’ revenues. A project-wide performance evaluation on the Fruit Tree Productivity Project is also expected in August 2015, with a follow-up performance evaluation of key activities expected in 2018. This evaluation will measure the effectiveness and sustainability of the Fruit Tree Productivity Project as a whole in terms of crop yields, number of hectares rehabilitated, adoption rates of improved practices by farmers, the impact of irrigation infrastructure on revenue and crop yields, and economic performance of olive and date processing units.

Key performance indicators and outputs at Compact End Date

Key performance indicators and outputs at Compact End Date
Activity/Outcome Key Performance Indicators Baseline End of Compact Target Quarter 1 through Quarter 20 actuals (Dec. 2013) Percent Compact Target Satisfied (Dec. 2013)
Catalyst Fund Activity

Outcome: Strengthening the olive value chain.

Disbursements under the Catalyst Fund (USD) 0 19,200,000 18,603,263 97%
Number of CF proposals approved 0 20 0 100%
Date Tree Irrigation and Rehabilitation in PMH- irrigated Areas Activity

Outcome: Rehabilitation of irrigation systems feeding date perimeters; strengthening the date value chains.

Average agricultural revenue per farm in oasis areas (USD)
  • Low agricultural performance (yields, revenues) is due to unfavorable weather conditions in 2011-12 in comprison to the baseline year (2008-09).
4,740 5,830 5,057 29%
Yield of rehabilitated date palms in oasis areas (mt/ha)
  • Low agricultural performance (yields, revenues) is due to unfavorable weather conditions in 2011-12 in comprison to the baseline year (2008-09).
36 51 29 -51%
Hectares under improved irrigation 0 19,393 19,393 100%
Number of invitro seedlings successfully planted 0 250,000 250,967 100%
Fruit Tree Sector Services Activity

Outcome: Strengthening the olive and date value chains.

Farmers trained (in all areas targeted by the Project) 0 4,200 40,863 97%
Olive Tree Irrigation and Rehabilitation Activity

Outcome: Rehabilitation of irrigation systems feeding olive perimeters; strengthening the olive value chains.

Yield of rehabilitated olive trees in irrigated areas (mt/ha)
  • Low agricultural performance (yields, revenues) is due to unfavorable weather conditions in 2011-12 in comprison to the baseline year (2008-09).
4 6 3 -86%
Cumulative area of irrigated perimeters rehabilitated (ha) 0 33,983 33,983 100%
Rain-fed Olive and Almond Tree Rehabilitation and Expansion Activity

Outcome: Expansion of area planted in olives and almonds; rehabilitation of existing olive and almond orchards.

Area in expansion perimeters for which water and soil conservation measures have been implemented (ha) 0 41,901 33,038 79%
Area planted and delivered to farmers (ha) 0 60,372 60,804 101%

Financial Services Project

  • $46,200,000Original Compact Project Amount
  • $42,817,020Total Disbursed
  • 13.5%Estimated Economic Rate of Return over 20 years

The Financial Services Project sought to provide low-income populations with access to microfinance services (particularly micro-entrepreneurs or small individual borrowers) by developing a network of mobile micro-credit associations, which are the main providers of financial services to those without access to the traditional banking system. MCC funding supported Jaida, a financial institution launched in late 2006 that makes loans in the Moroccan microcredit sector. Funds were also used to support reforms allowing the transformation of microcredit associations into formal financial institutions authorized not only to provide credit but also savings, insurance and other non-credit financial services. Finally, funding was provided for technical assistance to financial institutions to improve both efficiency and transparency in the financial sector and lower borrowing costs for micro-enterprises. At the end of the project, MCC had provided $25 million in loans via the Jaida Microfinance Investment Fund, which supported thousands of Moroccan micro and small enterprises. Regulatory changes and technical assistance allowed microfinance institutions to seek new sources of funding and provide new services to clients. 

Estimated benefits at compact close correspond to $42.8 million of project funds, where cost‑benefit analysis was conducted:

  • 825,240Estimated beneficiaries at compact close over 20 years
  • $9,900,000Estimated net benefits at compact close over 20 years

Evaluation Findings

MCC conducted a performance evaluation of the Financial Services Project. The Summary of Findings can be found here. Key findings include:

  • The subordinated loan made to Jaïda helped support the recovery of the microfinance sector by providing finance of at least $33 million to Microcredit Associations (AMCs), benefitting an estimated 51,000 microenterprises and with the potential to reach 400,000 microenterprises over a period of 8 years.
  • The results of the first mobile branch client surveys are likewise encouraging, and it is argued that in the medium term, tens of thousands of microenterprises operating in the remote areas served by these branches will have access to financial services.
  • At the time of the evaluation, access to credit for the people of 350 rural communities had been improved as a result of the mobile branches.  While unable to attribute income impacts to the compact intervention, the evaluation’s surveys found that almost 40% of customers of mobile agencies believed their annual income had increased by 5,000 DH or more (an increase of about 50% over the average income prior to obtaining credit).

Key performance indicators and outputs at Compact End Date

Key performance indicators and outputs at Compact End Date
Activity/Outcome Key Performance Indicators Baseline End of Compact Target Quarter 1 through Quarter 20 actuals (Dec. 2013) Percent Compact Target Satisfied (Dec. 2013)
Access to Funds for Microfinance Activity

Outcome: Ensure funding of the micro-credit sector through the Jaida Fund; mobile branches for increased access to finance in more remote areas.

Value of loan disbursements to Jaida (USD) 0 25,000,000 25,000,000 100%
Clients reached through mobile branches
  • Substantial indicator improvement is expected during the months after September 15, 2013, the Compact End Date, as all mobile branches are now deployed and as microcredit associations begin benefitting from MCC-funded organizational improvements.
0 55,000 3,350 6%
Value of loans granted through mobile branches (USD)
  • Substantial indicator improvement is expected during the months after September 15, 2013, the Compact End Date, as all mobile branches are now deployed and as microcredit associations begin benefitting from MCC-funded organizational improvements.
0 38,823,529 2,739,993 7%
Microfinance institutions' portfolio at risk at 30 days (%)
  • Smaller-than-forecast changes in outcome indicators are a reflection of challenges in the global microfinance sector rather than a reflection of project achievements.
6 5 6 21%
Value of loan agreements between AMCs and Jaida (Million MAD)
  • Smaller-than-forecast changes in outcome indicators are a reflection of challenges in the global microfinance sector rather than a reflection of project achievements.
276 983 694 59%

Artisan and Fez Medina Project

  • $111,873,858Original Compact Project Amount
  • $84,019,666Total Disbursed
  • 32.3%Estimated Economic Rate of Return over 20 years

Finding that tourist spending on artisan products in Morocco was substantially lower than in comparable markets despite the country’s rich offerings, the Government of Morocco proposed a project to boost artisanal household incomes. Many artisans lacked the training and skills necessary to modernize their production and capitalize on the growing tourist industry and export market. Drafted in line with national and regional strategies for developing the artisan sector, the Artisan and Fez Medina Project was designed to stimulate growth by leveraging links between the craft sector, tourism and the Fez Medina’s cultural, historic and architectural assets. The project also sought to assist potters in upgrading their equipment and techniques, strength­en the national system for literacy and vocational education to benefit artisans and the general popula­tion (especially women and girls) and support the design and reconstruction of historic sites in the medina. At the close of the compact, construction of the potter workshops (fondouks) at Ain Nokbi in Fez was complete, more than 300 artisans benefitted from promotion and marketing activities, and a new national label for handmade crafts was developed for Moroccan artisans. To date, 95 percent of the construction of the foundouks is complete, and Government of Morocco, which agreed to accept responsibility for works that they could not finish by the compact end-date, continues to finance restoration of Place Lalla Yeddouna. 

Estimated benefits at compact close correspond to $84 million of project funds, where cost‑benefit analysis was conducted:

  • 152,818Estimated beneficiaries at compact close over 20 years
  • $15,700,000Estimated net benefits at compact close over 20 years

Evaluation Findings

MCC conducted performance evaluations of the Artisan Production and Promotion and Fez Medina Activities and the Functional Literacy Sub-Activity. Summaries of Findings for the Artisan and Fez Median activities can be found here. Key findings include:

  • Although most performance targets were met, rigorous measurement of the impact of these activities was not feasible under this evaluation. The evaluation notes that only 20 potters (of a targeted 144) could afford to purchase modern gas kilns which were offered at reduced prices by the project. Similarly, the compact-funded pilot of a national label for artisans had not yet been completed as of the compact end date and no artisan had yet begun to append the label to their products.
  • However, the evaluation was able to collect data on the perceptions of beneficiaries. On average, potters who participated in compact-funded trainings estimated their incomes to have increased by 9.6%.
  • As for the Fez Medina Activity, no compact outputs were completed except the construction of a new workshop at Ain Nokbi where copperware artisans operating in Place Lalla Yeddouna were resettled. Targeted beneficiaries had not yet observed positive impacts of the compact’s interventions, as responsibility for completion of the Fez Medina rehabilitations was transferred to the Government of Morocco. (Sites are expected to be completed in 2017.) However, the evaluation did find that working conditions substantially improved due to air extraction and filtering systems in the new fondouk constructed at Ain Nokbi.

Summaries of Findings for performance evaluations related to the Functional Literacy Sub-Activity can be found here. Key findings include:

  • Of the more than 69,000 enrollees from the Fruit Tree Productivity, Small Scale Fisheries, and Artisan Production projects, as well as their families, 82% learned to read, write, do arithmetic, and perform other life skills. 
  • The community-based and flexible hours approach appears to have contributed to a high number of females in the training sessions and among literacy facilitators and managers.
  • 74.6% of beneficiaries stated they used the new technologies daily in the course of their professional activities.
  • From information gathered from beneficiaries in focus groups or semi-structured interviews, the evaluator expected productivity gains of 20%, 40% or even 60% over time, depending on various exogenous factors noted by farmers, fishers and artisans.
  • Although it was difficult to measure the ultimate impact of the Functional Literacy Activity on the incomes and living standards of beneficiaries, the study of 500 beneficiaries found that 66.8% of them anticipated improved incomes due to the training they received.

MCC is also conducting an evaluation of the Vocational Training Sub-Activity, which is expected to be completed in 2016 and which will measure the success and relevance of the vocational training sessions and the potential for productivity gains and income benefits in the future.

Key performance indicators and outputs at Compact End Date

Key performance indicators and outputs at Compact End Date
Activity/Outcome Key Performance Indicators Baseline End of Compact Target Quarter 1 through Quarter 20 actuals (Dec. 2013) Percent Compact Target Satisfied (Dec. 2013)
Artisan Production Activity

Outcome: Adoption of improved, sustainable artisan production practices; adoption of modern, environmentally sustainable pottery kilns.

Adoption rate of improved production practices promoted by the project (%) 0 23 %
MCC-subsidized gas kilns bought by artisans
  • Fewer kilns were acquired than expected, as potters struggled to cover their share of the costs. This was largely due to higher than anticipated costs of installing new kilns and to potters’ limited access to finance.
0 144 20 14%
Training of potters 0 3,905 2,332 60%
Artisan Promotion Activity

Outcome:

Number of SMEs participating in promotion events 0 130 118 91%
Number of SMEs that append the label on their products
  • 30 SMEs were certified to participate in the national label. SMEs are expected to begin appending their labels after February 2014.
0 30 0 0%
Tourist circuits improved or created 0 7 11 157%
Fez Medina Activity

Outcome: Rehabilitation of historic sites in the Fez Medina.

Beneficiaries of Ain Nokbi construction and artisan resettlement program 0 1,283 1,283 100%
Sites constructed or rehabilitated (4 foundouks, Place Lalla Ydouna, Ain Nokbi)
  • The Ain Nokbi Foundouk, which houses artisan workshops, is complete and operational. The Government of Morocco is committed to completing construction/rehabilitation of the five remaining historic sites, drawing from its own budget. Four of the five are expected to be completed before the end of 2014, and completion of the fifth site is expected in 2015.
0 6 1 17%
Literacy and Vocational Education Activity

Outcome: Training of beneficiaries in functional literacy and professional training

Drop-out rates of participants of residential and apprenticeship programs 60 40 41 95%
Graduates of vocational training program (residential, apprenticeship & continuing education) 0 3,747 3,044 81%
Females receiving professional training 0 4,496 4,719 105%
Total receiving professional training 0 22,950 22,502 98%
Graduates of MCC-supported Functional Literacy program (Male)
  • The activity met 93% of the overall graduates target (38,708 of 41,491 expected), with a greater proportion of females-to-males than originally forecasted.
0 16,597 7,355 44%
Graduates of MCC-supported Functional Literacy program (Female)
  • The activity met 93% of the overall graduates target (38,708 of 41,491 expected), with a greater proportion of females-to-males than originally forecasted.
0 24,894 31,353 126%
Total receiving literacy training 0 69,000 69,731 101%

Small Scale Fisheries Project

  • $116,168,028Original Compact Project Amount
  • $111,281,204Total Disbursed
  • 23.7%Estimated Economic Rate of Return over 20 years

Morocco has 3,500 kilometers of coastline and is the largest fish producer in Africa and the Middle East. Total annual value-at-landing of Morocco’s catch is about $832 million, making fishing one of the most important industries in the country. In addition, demand for fish is expected to continue to increase nationally, driven by an expanding tourism sector and anticipated growth in domestic fish consumption. However, small-scale fisheries are one of the most underdeveloped segments of Morocco’s fishing sector due to inadequate coastal landing sites and port infrastructure, lack of reliable cold chains from the sea to consumer, limited access to open markets, and insufficient training for fishers and their cooperatives. The Small-Scale Fisheries Project was designed, therefore, to transform the sector by constructing landing sites, wholesale markets and facilities; providing technical assistance; par­tially funding fresh-fish transportation equipment for mobile fish vendors; establishing marine protected areas; and increasing efforts to ensure sustainable use of fish resources. The Morocco Compact funded the construction and equipping of 11 fish landing sites, 11 port facilities, and three marine protected areas, five wholesale fish markets, as well as the training and equipping of 933 mobile fish vendors. The Government of Morocco is taking steps to operationalize the remaining five of the 30 infrastructure sites funded in the project. MCC had originally agreed to fund up to 39 sites including 20 improved landing sites, 13 ports and six wholesale fish markets. Budget constraints, however, as well as environmental and social considerations, and an inability to secure land titles led the exclusion of 13 sites from consideration.   

Estimated benefits at compact close correspond to $111.3 million of project funds, where cost‑benefit analysis was conducted:

  • 128,960Estimated beneficiaries at compact close over 20 years
  • $187,700,000Estimated net benefits at compact close over 20 years

Evaluation Findings

MCC is conducting an interim performance evaluation on the Small-Scale Fisheries Project expected for August 2015 which will measure the adoption rate of new techniques by the fishers, effects on price of fish, fish consumption in cities where fish wholesale markets were built, and artisan fishers’ and mobile fish vendors’ incomes. A final report is expected in 2018.

Key performance indicators and outputs at Compact End Date

Key performance indicators and outputs at Compact End Date
Activity/Outcome Key Performance Indicators Baseline End of Compact Target Quarter 1 through Quarter 20 actuals (Dec. 2013) Percent Compact Target Satisfied (Dec. 2013)
Development of Fish Landing Sites and Port Facilities Activity

Outcome: Completion of 11 fish landing sites and 11 ports.

Number of artisan fishers who received a training certificate 0 15,000 19,750 132%
Boats benefitting from landing sites and ports
  • As of December 31, 2013, a total of six sites with 2,164 corresponding boats were not yet operational. They were expected to go into operation during the first quarter of 2014.
0 4,368 2,057 47%
Development of Wholesale Fish Markets Activity

Outcome: Construction of five wholesale fish markets.

Number of work days created for construction jobs in PDAs, Ports, and Wholesale Market sites 0 730,000 %
Average price of fish at auction markets (MAD/kg) 35 40 41 107%
Support to Mobile Fish Vendors Activity

Outcome: Equipping mobile fish vendors with motorcycles and insulated boxes.

Net annual income of mobile fish vendors (USD)
  • Further increase in vendors' income is likely, given that many vendors were operating for only a short period prior to collection of income data.
3,827 6,201 5,382 66%
Active mobile fish vendors trained and equipped by the project 0 1,300 933 72%

Coordination and Partnerships

MCC is committed to working with its partner countries, other donors and international institutions to leverage resources and expertise in reducing global poverty and creating opportunities for long-term growth. During compact implementation, the Government of Morocco contributed more than $34 million of its own funding to ensure the success of the Fruit Tree Productivity Project, including funding for the planting of an additional 19,322 hectares of olive orchards. As of December 2014, 9,466 hectares of this area had been turned over to beneficiaries. The Government of Morocco also committed to finishing infrastructure in the Fez Medina, a contribution valued at approximately $20 million, after the close of the compact. After the close of the compact, Morocco also provided $7.9 million for improved landing sites and port facilities, $4.5 million for wholesale fish market construction and $10.4 million for project management in the Small-Scale Fisheries Project to supplement the compact investments. Finally, as a complement to the Financial Services Project, the World Bank is executing a $4.9 million grant that will strengthen the institutional and regulatory microfinance framework, strengthen product innovation and funding sources for microfinance and integrate microfinance into the national financial inclusion strategy. This project is expected to run through January 2018. 

Key Conditions Precedent

To facilitate and incentivize the desired investment outcomes under the compact, MCC and the Government of Morocco agreed that the following conditions precedent would be met before disbursing funds needed for the projects identified below.

Key Conditions Precedent
Key Compact Component(s) Major Condition Precedent or Policy Reform Required Rating
Small Scale Fisheries Project

Development of Wholesale Fish Markets

Prior to the signature of any contract for the construction of wholesale fish markets, either (1) the National Fisheries Office and relevant local authorities will have agreed to and signed rules and regulations governing the operation of a compact-funded wholesale fish market or (ii) the Parliament will have passed and promulgated a law regulating wholesale fish marketing by mareyeurs (wholesale fish traders) and issued regulations satisfactory to MCC.

Met on time

Artisan and Fez Medina Project

Fez Medina Activity

Prior to any disbursement the proceeds of which include, in whole or in part, funding for construction of Place Lalla Yeddouna, the Government of Morocco shall ensure the development, implementation and enforcement of a sanitary and waste management plan for Place Lalla Yeddouna, including the completion of the RADEEF plan to eliminate the transmission of wastewater via the river

Waived

This CP was waived when the Government of Morocco took over responsibility of Place Lalla Yeddouna construction.  However, MCC has strongly encouraged the Government of Morocco to pursue implementation of the already-developed waste management plan as a fundamental component to the success of their investment—and to ensure consistency with industry accepted best practices.

Artisan and Fez Medina Project

Functional Literacy and Vocational Training Activity

The compact Accountable Entity (APP) shall sign an agreement with the Ministry of National Education (MNE), satisfactory to MCC, specifying the role of the MNE and its subsidiary departments, particularly as it pertains to the creation of a national literacy certification system.

Met on time

Artisan and Fez Medina Project

Functional Literacy and Vocational Training Activity

Before entering into any contract(s) to procure equipment for SECA (now Ministry of Handicrafts) Training Centers, The compact Accountable Entity (APP) shall ensure that, satisfactory to MCC, each training center will receive equipment that has met the following eligibility criteria: a strategic management plan/business plan has been developed and approved; basic physical conditions and human and financial resources, as measured by an evaluation team to be recruited by APP, are in place to guarantee optimal installation, operation; and maintenance of the equipment.

Met on time

Financial Services Project

Support to Mobile Fish Vendors

The National Fisheries Office, in consultation with representatives of mobile fish vendors, is to develop mobile fish vendor business codes stipulating inter alia, use of wholesale markets and adoption and respect of quality standards.

Met on time

Small Scale Fisheries Project

Support to Mobile Fish Vendors

The Government of Morocco adopts and issues documentation for official registration of mobile fish vendors, together with training and operating practices for eligibility and compliance. The Government of Morocco also issues instructions that only vendors who have qualified for and received registration will become beneficiaries of MCC-supported interventions. Individual certification will be delivered to each group of beneficiaries at the time they receive their new equipment.

Met on time