Moroccans Abroad Inject $5 Billion in the National Economy Each Year

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 The latest report of the International Fund for Agricultural Development of the United Nations for the year 2014 comes to classify Morocco in the third position in terms of money transfers of its citizens abroad during 2014. It is preceded by Nigeria and Egypt. And these are Moroccans of France who held the top spot in 2014 by transferring about $ 2 billion to Morocco, followed by Moroccans in Spain with $ 1.7 billion and those from Italy with 959 million dollars. This distribution is explained by the strong presence of Moroccans in France. This remains the main focus of the Moroccan immigration and continues to be driven by skilled migration.

Morocco’s ranking in terms of remittances from its nationals abroad confirms the observation made by the study on “MRE remittances” conducted by the United Nations Economic Commission for Africa (ECA) Office for North Africa, with the aim to identify the dynamics of remittances from national living abroad in three countries in the North Africa subregion (Algeria, Morocco and Tunisia). According to this study, Morocco is clearly distinguishable from its neighbors regarding the volume of funds transferred by the community living abroad. During the period 2002-2013, the average share of transfers of MRE has positioned the Morocco in first place across the Maghreb. Thus, this study highlights the upward trend in MRE funds in recent years.

Between 2002-2013, remittances have undergone changes in line with the dynamics of Moroccan emigration and changes in migration policy of the country of residence, we read in the study. The dynamic analysis of the funds has highlighted the positive impact of remittances from Moroccans living abroad on macro-financial stability of the country, particularly in terms of currency supply. “An effect which can ease tensions that affect the level of liquidity and absorb some of the external financing needs,” said the study of ECA. But despite their importance for the Moroccan economy, remittances from Moroccans living abroad relate only weakly on investment. Only 7.7% of total funds are transferred to investment, 71% absorbed by consumption. The real estate remains the dominant sector investment of migrants. According to the study, “the choice of real estate is a status symbol and it also has a symbolic value and emotional for migrant living away from home.” However, investment in the real estate sector reflects an imbalance to the extent that it concerns only the regions that are already wealthy at the expense of disadvantaged areas convicted divestment.

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