Caspian Energy (CE): Your Excellency, economy of the Kingdom of Morocco is closely linked with both the African countries and Europe. How would you assess the investment attractiveness of the Moroccan economy and other countries of the continent?
Saad-Eddine El Othmani, Head of Government of the Kingdom of Morocco:For several years the Kingdom of Morocco has been implementing a strategy for bettering the investment attractiveness, which implies reducing delays in companies’ registration and mitigation of administrative barriers. Besides, it has made it easier to reach funds meant for projects financing, and also set up better guidance for investors, etc.
These policies have allowed our country to improve its ranking in Doing Business from 97th in 2012 to 69th in 2018. Our ambition is clearly to host more and more strategic investments both for the African market but also for the needs of our strategic partners such as European countries.
CE: Which countries are strategic partners of the Kingdom?
Saad-Eddine El Othmani:We are a very open economy. We count within our partners - countries from the African, Asianб American and European continents. Historically, Morocco has always been a country of trade and strategic alliances.
Today, however, we feel the need to both participate in the global economy by being part of the main economic flows, but also, we strongly feel part of a new dynamics in Africa that we surely want to hold up high and defend.
CE: Which energy security problems exist? Which projects are priority and when will they be implemented?
Saad-Eddine El Othmani:Morocco is on a way of development that surely needs energy for its industry, agriculture, services, housing, and so many other sectors that are thriving in our country. Thus, energy is a key element for our development to be sustainable. We do have thermal power stations under development throughout the country (in Safi for instance), to maintain the dynamics on.
However, we do have a chance of having a land of sun and wind potential, which are currently being developed. Indeed, we have a Renewable Energy plan that started with the Noor Solar Plan in Ouarzazate, holding a current capacity of 160 MW, forecasted to be 580 MW by 2030, raising the part of renewables in our energy consumption to 52%.
We are also the third wind energy producer for Africa with a capacity of almost 790 MW installed, and we have a 850 MW project currently being developed through five wind plants around the country with an opening between this year and 2020.
CE: How much investments will be attracted to bring the share of renewable sources of energy up to 52% in the total consumption volume?
Saad-Eddine El Othmani:We estimated that the Renewable energies plan will need an investment of $18.95 billion by 2020 and will create some 50 000 jobs. These are major investments that will bring our country to the rank of leader both in Africa and worldwide.
CE: How is the relationship with the Caspian countries developing? What potential do you see in relations with Azerbaijan, Russia and Kazakhstan?
Saad-Eddine El Othmani:For sure, the Caspian countries are key partners to Morocco. First, our relationship with those countries has been developing quite long. We have strengthened our trade agreements with Russia since last summer, regarding many of our strategic sectors such as pharmaceuticals, building industry, transport and logistics, energy, aviation industry, and so on. As for Kazakhstan, I personally met with Mr. Bagdad Amreyev in 2012 when I was Minister of Foreign Affairs, and we have agreed on working actively on the development of our trade relationship. Azerbaijan, finally, is one of our key partners in the Caspian countries. Our relationship with Baku is strong and based on mutual support. We are looking forward to strengthening our successful partnership in the long run.
CE: Transport corridors One Belt, One Route, North-South are actively developing at present. What role belongs to Morocco in development of these directions?
Saad-Eddine El Othmani:The OBOR project is key to the development of trade between Asia and Africa. It will surely help both continents to develop and to maintain strong relationships between countries, nations and areas and help them overcome economic and political crises. In Morocco, we observe with scrutiny its implementation and look forward to it.
CE: Global LNG consumption is rapidly growing. What role can Moroccan ports play in making gas a global energy resource?
Saad-Eddine El Othmani:Morocco is a country of great coast. We have three international standard ports such as the Tangier Med port, the Jorf Lasfar industrial port and of course the Casablanca international port, which relates to all international destinations. We also have other international but smaller ports, such as the Agadir port, the Laayoune port or the Mohammedia port near Casablanca. All infrastructures are well equipped, and under strong reinforcement to reach global standards and to meet the international demand in terms of energy transport.
CE: To what extent is LNG consumption effective in Morocco?
Saad-Eddine El Othmani:LNG represents 5.2% of our energy consumption, which we mainly import.
CE: What stage has the coastal Nigeria-Morocco gas pipeline project reached?
Saad-Eddine El Othmani:The project is currently under study to identify the impact of its implementation.
CE: What is the share of small and medium businesses in the Kingdom’s GDP?
Saad-Eddine El Othmani:Small and medium enterprises-SMEs represent up to 95% of the business in Morocco. They are a valuable asset for our flexibility and adaptability regarding the global economy although they also face some major challenges we have to address.
Thank you for the interview.
