According to Veilleux-Laborie, Morocco, which in the past has demonstrated its resilience in the face of internal and external shocks, has the solid fundamentals to deal with this global crisis that is unprecedented in terms of its violence and suddenness.

 She also believed that the reflection initiated by the Kingdom on the renewal of its development model is even more topical in preparation for the day after the emergency management, recalling that the EBRD has launched an immediate response in the form of a solidarity budget, from which Morocco was the first to benefit with €145 million for the banking sector and small and medium-sized enterprises (SMEs).

 
First of all, how do you assess the impact of Covid-19 in Morocco?

The whole world is affected by this pandemic, with a global crisis that is unprecedented and exceptional in terms of its violence and suddenness. Morocco has unfortunately not escaped it, but the public authorities have been very reactive and even proactive in the management of this pandemic with measures taken very early as soon as the first case appeared, on March 2nd.

 I think we should expect a year 2020 to be extremely difficult economically and socially, not only because of the consequences of the health crisis, but also because of the agricultural drought with a very low level of rainfall.

This is a new situation. What we are seeing on the ground today, since the EBRD has a strong presence in Morocco, is that at the level of companies, the situation is very serious, with more than 140,000 companies at a standstill, according to the latest data by the High Commissioner for Planning (HCP). The informal sector is also hard hit, particularly because of the confinement. This has a very significant direct social impact.

 I believe that Morocco has solid fundamentals to deal with the current difficulties. In the past, the Kingdom has demonstrated its resilience in the face of internal and external shocks.

What action is the EBRD taking to support Morocco's efforts to emerge from this crisis?

In a global and institutional way, our approach consists in proposing financing and support solutions to mitigate the impact of the crisis but also to prepare for tomorrow, once the emergency management is over.

 In mid-March, the EBRD was the first donor to launch a €1 billion solidarity budget worldwide to support companies facing liquidity problems, financing working capital requirements. This is an immediate response to meet the liquidity needs of countries and the private sector.

Last Friday, our board of directors approved the second phase of this solidarity budget for €21 billion over 2020-2021 with five main components. Among these components, two seem important to me to be highlighted: A €4 billion resilience budget to provide short-term emergency liquidity to our partners and subsidiaries (companies and financial institutions) and support for vital infrastructure services - such as electricity and water for example.

Morocco was the first country to benefit from this solidarity budget and our first client was the Bank Of Africa - BMCE group to which we granted, last week, a financing package of 145 million euros.

 The objective of this financing package is threefold: to continue to support our long-standing banking partner and bank liquidity, to back the real economy to ensure the resilience of small and medium-sized enterprises (SMEs) and to increase the line promoting international trade in order to support Morocco's imports and exports, which are currently suffering the impact of the crisis.

The second response we have already given to Morocco is technical support for SMEs, which is financed by the European Union.

These two actions are immediate responses, but our aim is also to prepare the way out of the crisis and support projects that are part of long-term public policies. This is why we are supporting the ministry of Agriculture in the implementation of the "Generation Green" plan with a €150 million loan.

How can we revive the Moroccan economy after the coronavirus?

This is a very difficult question, because this crisis is unprecedented and there is no economic model on which to base ourselves.

The Moroccan authorities were proactive in managing the emergency and health crisis to mitigate the negative economic and social fallout. I am thinking in particular of support for the most vulnerable populations, SMEs and more generally for businesses and employment, and the support of the Central Bank (Bank Al-Maghrib).

Each country will decide how to revive the economy but, of course, it will be necessary to coordinate public policies internationally, especially given the interdependence between Morocco and Europe.

 Before the Covid-19 pandemic, Morocco had already begun to reflect on its new economic development model. I think that once the management of the health emergency is over, this reflection will be even more topical in order to redefine the development model. The objective will be to initiate profound structural transformations and to create an environment conducive to an inclusive economy, particularly in terms of access to vital services such as health and education, and to a decarbonized green economy to address climate change.

What are the priority sectors to target for a successful recovery?

First of all, as in many countries, we will have to start cautiously to avoid a relapse. We are now witnessing extremely rapid digitalization, which is leading to major technological change, particularly with e-learning and distance working, for example.

 Obviously, the Moroccan tourism sector is very much affected, as in all countries where this sector is important. It is urgent to support this sector both in the short and long term, to show that we are ready to welcome tourists again in a healthy environment.

At the same time, the agricultural sector remains and will be paramount. The "Generation Green" strategy should make it possible to radically transform this sector and meet basic needs and ensure food sovereignty. We are expecting a global shortage in the supply of agricultural products, not because of poor harvests but because of a lack of labor capable of harvesting in a timely manner due to the confinement and disruption of conventional transport and delivery channels. This may be an opportunity for Morocco to put in place innovative processes to meet the expectations of global consumers, given the new situation.

The same is true for exporting industries, particularly the automotive, aeronautics and textile industries, where coordination is necessary with partners of Moroccan production chains.

 Finally, the African dimension is an asset in view of the disruption of trade flows and value chains which is likely to lead to a recomposition of the world trade map. Morocco seems to me to be very well placed to benefit from this new reshaping.