The Millennium Challenge Corporation (MCC), a U.S. government corporation, announced to a U.S. audience the $697.5 million compact, the largest to date, aimed at boosting Morocco's economy across multiple sectors. The compact was presented and discussed at MCC headquarters during a seminar entitled "Morocco Compact -- Business and Procurement Seminar." The seminar was co-hosted by the Millennium Challenge Corporation, the Moroccan American Trade and Investment Center (MATIC) and the National U.S.-Arab Chamber of Commerce. Opportunities for U.S. companies and other procurement and investment opportunities in the country were also discussed.
The compact, which officially began on August 9, will contribute $118 million each year over the next five years to Morocco's GDP and to directly assist more than 600,000 families. The five year $697.5 million compact is designed to encourage economic growth by stimulating productivity and increasing employment levels.
"The Moroccan government is truly excited about this opportunity. Although there are a number of projects underway internally already, the country welcomes the chance to further stimulate economic growth with the help of this grant. It has truly created new and exciting possibilities," said Jean AbiNader, managing director of the Moroccan American Trade and Investment Center (MATIC).
The compact will focus on the following programs:
-- Fruit Tree Productivity Project ($300.90 million)
-- Small-Scale Fisheries Project ($116.17 million)
-- Artisan and Fez Medina Project ($111.87 million)
-- Financial Services Project ($46.20 million)
-- Enterprise Support Project ($33.85 million)
Fruit Tree Productivity Project ($300.90 million)
The Fruit Tree Production Project, which will receive more than $300 million of the grant funds, aims to stimulate growth and stabilize agricultural production. The program will focus on increased efficiency of irrigation for olive and date trees and on diversification for rain-fed olive, almond and fig trees. These changes will increase productivity and reduce poverty in targeted zones. MCC expects this project will positively impact approximately 136,000 farm households in Morocco.
Small-Scale Fisheries Project ($116.17 million)
The Small-Scale Fisheries Project, slotted to receive more than $116 million, is designed to improve the quality of fish moving though domestic channels and to assure the sustainable use of fishing resources. The project will: develop fish landing sites and local port to preserve the quality and value of catches; reduce the cost of business for small-scale fisherman; develop wholesale fish markets; and provide support to vendors to increase the values, volume and marketing ranges of mobile fish vendors. This project is expected to benefit roughly 24,000 small-scale fisheries, boat owners, wholesale fish merchants and mobile fish vendors. It is estimated that mobile fish vendor net incomes will increase approximately 62 percent, enabling the vendors to rise above subsistence-level poverty.
Artisan and Fez Medina Project ($111.87 million)
The Artisan and Fez Medina Project, to receive more than $100 million in grant funds, aims to increase economic growth by linking the craft sector, tourism and the Fez Medina's rich cultural, historic and architectural qualities. This project will focus on production capacity and quality of products, promotion and labeling of products, increasing interaction between artisans and tourists, and redesigning and developing historic sites within Fez Medina. This project is expected to benefit roughly 1,000 faculty members, 120,000 students and give new design and production training to 50,000 master artisans.
Financial Services Project ($46.20 million)
The Financial Services Project, which will receive more than $45 million in compact funds, aims to increase supply and decrease costs of financial services available to micro-enterprises. This will be done by increasing access to loans, creating new financial products to increase access to funds, and focusing on operating efficiency and transparency to reduce the cost of financial services for micro-enterprises. This will allow people to borrow and invest in small, high-return investments to significantly increase their incomes. The Financial Services Project is expected to benefit 174,000 clients of micro-credit associations.
Enterprise Support Project ($33.85 million)
The Enterprise Support Project, slotted to receive more than $30 million in grant funds, will address two prime economic concerns: reducing high unemployment among young graduates and encouraging a more entrepreneurial culture. The project will build on two existing government programs: Moukawalati* and the National Initiative for Human Development (INDH)**. During an initial pilot phase, training will be offered to current beneficiaries of these programs. If the pilot is successful it will be expanded in the compact's third year. In the pilot phase of this project, it is estimated that 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.
*Moukawalati is a new national program designed to encourage competitiveness in Morocco's business community in the spirit of globalization and to address high unemployment rates amongst Moroccan youth.
**The National Initiative for Human Development (INDH) is a government initiative designed to create opportunities for the poor, vulnerable and socially excluded.
Additional information on the MCC compact on:
http://www.mcc.gov/countries/morocco/index.php
The Moroccan American Trade and Investment Center (MATIC) is a non-profit trade association based in Washington, D.C. whose principle mission is to encourage stronger commercial and investment ties between Morocco and the United States. It has developed strategic marketing campaigns for key sectors in the Kingdom and coordinates its activities with a range of government and private sector organizations and companies in Morocco.
This material is distributed by DJE, Inc. on behalf of the Moroccan American Center for Policy and the Moroccan American Trade and Investment Center. Additional information is available at the Department of Justice, in Washington, D.C.
SOURCE Moroccan American Trade and Investment Center
http://www.mcc.gov/countries/morocco/index.php
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