It is now one year since Prime Minister Aziz Akhannouch took up the reins of power and, with twelve months of governance under its belt, his administration is taking stock. 

At the start of October, the politburo of Akhannouch’s ruling Rassemblement National des Indépendants (RNI) held a meeting to assess the government’s performance since it took office. The readout at the end of the gathering was somewhat self-congratulatory in tone, with the party concluding that its year in power had been characterised by ‘calmness’ and that the government coalition which it leads had risen to the challenge. 

The RNI also said that it had put the necessary conditions in place to fulfil the commitments that were made in its election campaign. It was clearly keen to assure Moroccans that it is ready for its second year in power and remains a safe pair of hands to steer the Kingdom through the next phase.  

Public is unimpressed

The RNI’s self-assured tone did not translate well with the Moroccan public who are less than enamoured with its performance. The general consensus is that the government has not achieved much and has fallen a long way short of meeting the ambitious promises that it made before the general election. 

Most Moroccans feel financially worse off than they were a year ago, and the challenges of day to day living are growing. A startling new report issued by the Haut Commissariat au Plan (HCP) revealed that levels of poverty and vulnerability are rising and that an additional 3.2 million Moroccans are affected. The study calculated that 45% of the deterioration has been due to the impact of COVID-19 while the remaining 55% is attributable to the rising price of basic goods. The report found that the levels of poverty and vulnerability are similar to those recorded in 2014, and asserted that, ‘Almost seven years of progress towards the elimination of poverty and vulnerability have been lost.’ 

External factors — including those caused by Russia’s invasion of Ukraine which has led to rapidly rising international energy and food prices — clearly contributed to this decrease in living standards. There is, however, a growing belief that the government has not got a proper grip on the situation and lacks sufficient political will to make the necessary changes to lessen the burden on the poor. There is, for example, frustration that it is not doing enough to deal with inflation and skyrocketing prices. This month the Moroccan economist, Mohamed Jadri, urged the government to take ‘immediate measures to mitigate the effects of inflation.’

Persistent anger at high fuel prices

Fuel prices are another case in point. Given Akhannouch’s personal business interests — being the owner of the Akwa Group S.A. (formerly Groupe Afriquia) which is one of the Kingdom’s most important players in the fuel market — there are still suspicions that his government is deliberately keeping fuel prices high for personal gain (Morocco Focus, July 2022). 

These suspicions fuelled the mass social media campaign that erupted earlier this year calling for Akhannouch’s resignation. Although it has not translated into calls in the streets for Akhannouch to go, many Moroccans view him as a billionaire businessman who is very far removed from the needs of ordinary people and who, along with a business elite, is making personal profits off the back of the crisis. 

Such suspicions were further powered by the late August report by the Conseil de la Concurrence competition authority which asserted that predatory practices and a lack of political will to implement market reforms ‘may be to blame’ for the sharp rises in fuel prices. 

The report showed how market players in the Kingdom ‘move to raise prices at the pump as soon as prices rise on the international market. But in the case when they drop, they aim to first sell off the previous reserves they bought at a higher price,’ and noted that, ‘market players in the fuel industry tend to consolidate their profit margins or even increase them.’ The watchdog also claimed that the current legal framework regulating the fuel distribution market is vague and outdated, and that the process to evaluate new investor applications is too opaque. 

There is still significant anger and resentment at the way in which the government is managing the economic crisis. Its repeated insistence on laying the blame on international factors or on its predecessor is wearing increasingly thin. 

Premier highlights his achievements

However, the anger and frustration at the government’s failure to adequately address the cost of living crisis risks belying the advances that have been made by the government in what have been particularly trying circumstances. 

As Akhannouch laid out in a meeting with over 4,000 RNI youth in September, it has provided support across a host of sectors. It allocated MAD10 billion (US$907 million) to tackle the drought that has further ravaged the Kingdom’s agricultural sector, and MAD2 billion (US$181 million) to support the tourism sector which appears to be recovering after the COVID-19 crisis. 

The government has also: subsidised sugar; and wheat for which it has allocated MAD7 billion (US$635 million) in order to keep soft wheat prices contained; and MAD17 billion (US$1,542 million) to subsidise butane gas ensuring the price of a large canister is capped at MAD40 (US$3.63). It has also supported the transport sector, allocating MAD2.75 billion (US$250 million) to subsidise the sector in order to keep down prices for transported both goods and passengers. 

In addition, the government has succeeded in expanding social protection, especially in activating health insurance, moving the Regime d’Assistance Medicale (RAMED) programme from the national health insurance agency to the national social security fund in the process. 

It has also increased the health budget and raised doctors’ salaries and this month the Finance Ministry announced that it was increasing the salaries of temporary staff.