Moroccans’ remittances are substantial, but their distribution is skewed. Only 10% of these remittances are channeled into productive investments, with a significant portion going towards real estate and family support, according to a new report by the Government Work Observatory.
This contrasts with other African countries like Nigeria and Kenya, which allocate a higher percentage of remittances to investments.
Moroccan residents abroad, numbering around 5.1 million, form a dynamic demographic, with nearly 60% aged between 15 and 39. Their financial remittances, exceeding MAD 115 billion in 2023, have bolstered Morocco’s foreign reserves, stabilized the currency, and supported macroeconomic balances.
Beyond their economic contributions, Moroccan expatriates are ardent advocates for their homeland’s causes, particularly regarding the Western Sahara issue.
Their cultural influence and athletic prowess, as exemplified by the national football team’s recent World Cup performance, further solidify their connection to Morocco.
Despite their potential, the full investment capabilities of the Moroccan diaspora remain untapped.
According to the report, the current tools available seem limited and inadequate to meet the expectations of Moroccan expatriates.
For instance, the MDM Invest fund, specifically designed to support projects by Moroccan expatriates, has failed to make a significant impact. Since its inception in 2002, only 48 projects have been funded.
Morocco lacks other dedicated funding sources to support diaspora investments. This lack of financing options restricts investors’ choices, forcing many to rely on their own funds or costly bank loans that are not specifically tailored to support their projects.
Investment projects initiated by Moroccan expatriates also suffer from a lack of support from national banks, both in terms of financial facilities and technical assistance.
Many banks lack products and services tailored to their needs, and banking procedures are often complex and time-consuming, hindering project implementation, especially for overseas investors who cannot personally oversee the process.
The complex administrative procedures also present a major hurdle for Moroccans living abroad who wish to invest in their home country.
These processes are often lengthy and convoluted, frequently requiring their physical presence in Morocco to finalize. Many Moroccans residing overseas are forced to make frequent trips to complete administrative formalities.
While Morocco has made strides in digitalization, the digital infrastructure specifically designed for Moroccan expatriates remains limited and inadequate to meet their unique needs.
Most available electronic platforms do not offer solutions that enable investors to complete their procedures or track their projects remotely.
The post Report: Moroccan diaspora remittances have low investment impact appeared first on HESPRESS English – Morocco News.
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