Morocco’s ambitious infrastructure plans to host the FIFA World Cup 2030 could put pressure on public finances, the International Monetary Fund (IMF) has warned, even as past investments in ports, transport, and telecommunications have bolstered productivity and economic competitiveness.
Since the mid-2000s, Morocco has used infrastructure as a key driver of growth. According to the IMF, investments in roads, railways, ports, and telecom networks have contributed to nearly 20 percent of the country’s productive growth since 2005, outpacing many Middle Eastern and North African peers as well as other middle-income nations. These efforts have strengthened regional and global connectivity and helped position Morocco as a hub for trade and logistics.
Tanger Med Port, now the largest in Africa and the Mediterranean by capacity, exemplifies the country’s gains in maritime infrastructure. Between 1980 and 2010, Morocco also improved the efficiency of its infrastructure spending, moving ahead of many emerging markets in terms of quality and effectiveness, the IMF report noted.
Ambitious 2024–2030 investment plans
Looking ahead, Morocco plans to accelerate public investment in transport and tourism infrastructure, allocating nearly 12 percent of GDP annually until 2030. Projects include upgrades to railways, airports, roads, and stadiums to support both domestic development and the hosting of the 2030 FIFA World Cup.
Most funding will come from public enterprises through concessional loans domestically and internationally, supplemented by central government and local authority support through bank loans and budget reallocations. The IMF estimates that these investments could raise real GDP by 2 percent by 2030 compared with a scenario without additional infrastructure spending, with long-term gains potentially reaching 3 percent after 2031 due to higher productivity.
Risks to public finances
Despite the potential benefits, the IMF cautioned that public debt could rise by 7–8 percent of GDP by 2030 before gradually declining, supported by fees from infrastructure use and stronger economic growth. However, the report highlighted several risks that could alter this outlook.
The effectiveness of public spending is critical. Higher efficiency could boost long-term GDP gains to 4 percent, while inefficiencies, cost overruns, and delays could erode benefits and increase public debt. Additional financial pressures include maintenance costs, off-balance-sheet liabilities from public enterprises, and reliance on imported construction materials, which limit domestic economic spillovers. Financing projects through higher taxes rather than borrowing could also temporarily reduce private consumption, potentially slowing growth.
The IMF emphasized that Morocco must carefully manage public investment, enforce strict cost controls, integrate maintenance budgets, and monitor contingent liabilities closely to maintain fiscal stability.
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Sustaining momentum and growth
The IMF noted Morocco’s achievements in ports and telecommunications have already strengthened the country’s competitive position. To leverage opportunities such as the World Cup 2030, authorities will need to ensure that new infrastructure investments are efficient, sustainable, and well-coordinated with broader economic objectives.
By balancing ambitious projects with fiscal prudence, Morocco aims to continue using infrastructure as a driver of long-term growth, while safeguarding public finances and enhancing the country’s role as a regional trade and tourism hub.
