In an opening speech today for the annual International Days of Macroeconomics and Finance in Dakhla, Bank Al Maghrib (BAM) Governor Abdellatif Jouahri insisted on the importance of African economic integration on both the regional and continental levels, while lamenting the lack of progress of the Arab Maghreb Union integration.
“African countries are fully aware of the benefits of economic integration; they have launched many initiatives in this regard, which have contributed in particular to the creation of regional economic groupings, some of which have been successful, while others have yet to bear fruit, such as the Arab Maghreb Union, which is unfortunately known as one of the least integrated regions in the world.” said Jouahri.
The Governor added that holding the event in Dakhla reflects the renaissance of the Kingdom’s southern provinces, as well as its African depth and link to the rest of the continent.
Dakhla, according to Jouahri, is the best place to discuss this year’s theme, “Economic Integration in Africa. The road to a more prosperous future,” he said, all while highlighting that economic integration remains weak on the continent.
The BAM Governor stressed that the share of intra-regional trade in the total international trade of African countries is still limited, as it does not exceed 12% compared to 60% on average in Europe and Asia, noting that the African continent remains highly dependent on external markets, which increases its vulnerability to shocks, as shown by the COVID-19 pandemic and the war in Ukraine.
During the event opening, organized in partnership between the Dakhla-Oued Ed Dahab Regional Council, BAM and the Bernoulli Center for Economics at the University of Basel, Switzerland, the official enumerated the development potential of African countries.
With their populations as their first wealth, especially the young population, African economies’ growth rate has accelerated significantly in recent years.
According to UN projections, these countries will constitute a quarter of the world’s population by 2050, while they are endowed with many of the most precious natural resources in the world, vast fertile lands and a biodiversity essential to the future of the planet, he said.
In his speech, Jouahiri considered the African Continental Free Trade Area (ZLECAf), launched by African countries, as a glimmer of hope given its potential benefits, explaining that although it is approximate, various assessments made regarding its effects indicate significant gains.
Simulations conducted by the International Monetary Fund (IMF) showed that the establishment of this area, if accompanied by trade facilitation reforms, would increase Africa’s average trade with the rest of the world by 15% and with African countries by 53%, which would contribute to increasing the median gross domestic product per capita by more than 1.5%.
Economic integration is an approach adopted for years by Morocco, given the advantages of free trade and market rules. Since the 1980s, the Kingdom has opted for openness and measured economic liberalism, where the pursuit of efficiency and competitiveness does not come at the expense of social and solidarity considerations, he added.
Jouahri stressed that Morocco’s geographical and historical proximity to Europe has not deterred it from developing partnerships all over the world; however, this was not at the expense of its African affiliation, citing King Hassan II’s statement that “Morocco is a tree whose roots are in Africa and whose branches embrace Europe.”
The BAM Governor recalled King Mohammed VI’s call for joint development with African countries on a win-win basis, launching major projects such as the Morocco-Nigeria gas pipeline, which would contribute to diversifying the energy supply of many countries and contribute to ensuring food security on the continent, as well as the Atlantic initiative to facilitate the trade integration of many landlocked countries.
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