Agadir – Morocco could generate 1.7 million additional jobs by 2035 and boost its real GDP by nearly 20% above baseline projections if it pursues structural reforms, according to a new report released on Tuesday by the World Bank Group.
Morocco Growth and Jobs Report, developed in partnership with the Moroccan government, outlines reforms aimed at accelerating growth, attracting private investment, and expanding employment opportunities, particularly for women and youth.
According to the World Bank Group, Morocco has achieved notable economic progress in recent decades, but growth has not translated into sufficient job creation. Between 2000 and 2024, the country’s working-age population expanded nearly 2.5 times faster than employment levels.
The reports note that around 40% of Moroccan industries still operate under limited competitive pressure, constraining firms’ ability to scale and improve productivity. At the same time, women’s participation in the labor force remains among the lowest globally, despite relatively high education attainment.
The report identifies four key areas for reform: improving market competition, fostering more dynamic firms, increasing the effectiveness of public investment, and creating more inclusive labor markets.
The World Bank estimates that implementing these reforms could generate 1.7 million additional jobs by 2035 and 2.5 million by 2050, while significantly boosting Morocco’s long-term economic output.
“Morocco has built a strong foundation and with the policy recommendations of the Growth and Jobs Report, the Kingdom can go even further, generate millions of jobs, deepen private investment, and create real opportunities for women and youth. The World Bank Group is fully committed to this journey alongside Morocco,” said Ahmadou Moustapha Ndiaye, the International Bank for Reconstruction and Development (IBRD) Division Director for the Maghreb and Malta.
World Bank flags Morocco sectors
Another report released by the World Bank Group suggests that private investments are one of the long-term opportunities that can create more jobs and increase the country’s GDP through key sectors.
These areas include decentralized solar power generation, low-carbon textiles, argan-based cosmetics, and marine aquaculture, which “align with Morocco’s priorities on green growth, industrial upgrading, and regional development,” the report said.
The report argues that the key challenge facing these investments is “not a lack of opportunity, but policy and regulatory constraints focused on: administrative procedures, regulatory frameworks, and skills gaps that deter investors from acting on existing openings.”
To address these challenges, the World Bank recommends streamlining and digitalizing administrative procedures, clarifying regulations, strengthening traceability systems, and improving access to infrastructure and renewable energy.
If such measures are implemented, the report estimates Morocco could attract around $7.4 billion in private investment and create more than 166,000 jobs across the four targeted sectors over the next five to 10 years.
“Morocco has the sectoral assets and the policy ambition to attract significantly more private investment,” said Cheick-Oumar Sylla, the International Finance Corporation (IFC) Division Director for North Africa and the Horn of Africa.
“The country is ready for the next level of private sector engagement, and this diagnostic highlights concrete opportunities that could mobilize private investment equivalent to around 4% of GDP,” Sylla added.
