Morocco Approves Law to Expand Regional Competencies and Development

For years, the conversation around Morocco’s “advanced regionalization” has been one of high-level theory—a promise to shift power from the central corridors of Rabat to the diverse landscapes of the provinces. But a recent session of the House of Representatives’ Interior Commission has brought that theory into a sharp, pragmatic collision with reality.

The commission recently approved Organic Law No. 031.26, a critical piece of legislation designed to modify the existing framework (Law No. 111.14) and expand the powers of Morocco’s regions. On the surface, This proves an administrative update. In practice, it is a tug-of-war over who controls the cultural narrative, who manages the tourist assets, and, most importantly, who picks up the tab for national projects implemented on local soil.

The bill, which navigated 66 different amendments before passing with 12 votes in favor and three abstentions, signals a cautious evolution. While the government is opening the door to more regional autonomy, the Interior Ministry is ensuring that the door only opens a few inches at a time.

The Tug-of-War Over Culture and Identity

One of the most spirited debates during the commission’s review centered on Article 82. The Socialist Group (Opposition Ittihadi) pushed for “cultural development” to be classified as a primary, independent competency of the regions. Their argument was rooted in preservation: the belief that only local authorities can truly safeguard regional heritage, manage archaeological sites, and curate festivals that reflect a region’s unique identity.

From Instagram — related to Opposition Ittihadi, Interior Minister Abdelouafi Laftit

However, Interior Minister Abdelouafi Laftit offered a more clinical perspective. In a move that reflects his background in administrative efficiency, Laftit argued against letting regions “play the cultural role alone.” His stance is one of sequencing: development first, culture second. He contended that regions must first consolidate their operational capacities and economic foundations before taking full ownership of the cultural sector.

Laftit did not dismiss culture entirely, but he reframed it as an economic engine. By citing Ouarzazate—a global hub for cinema and tourism—he argued that the “cultural industry” is essentially an economic competency. For the Ministry, culture is a tool for regional growth, but the steering wheel remains, for now, largely in central hands.

Fiscal Safeguards and the Cost of National Projects

Perhaps the most contentious point of the legislation involves Article 93, which allows regions to help fund national projects that happen to be located within their borders, even if those projects don’t fall under the region’s specific legal competencies.

Fiscal Safeguards and the Cost of National Projects
Justice and Development Group

This created an immediate red flag for the Justice and Development Group (PJD), which sought an amendment to ensure such contributions are made only “within the limit of [the region’s] own resources.” The fear is simple: that the central state might lean too heavily on regional coffers to fund national priorities, potentially draining budgets meant for local infrastructure.

Minister Laftit’s response was a lesson in political nuance. He clarified that while the state has the right to propose such partnerships, the regions retain the right to accept or abstain. It is a “voluntary” contribution in name, though the political pressure to align with national goals often makes “abstaining” a difficult choice for regional leaders.

To provide a clearer picture of how these powers are shifting, the following table outlines the primary changes introduced by the amendments:

Area of Competency Previous Status (Law 111.14) Proposed Change (Law 031.26)
Cultural Development Centralized/Limited Integrated into economic development; gradual regional hand-off.
Tourism Assets State-led promotion Shared competency; regions gain power to valorize local assets.
Project Execution Public Agency (AREP) Transformation into a Public Limited Company (Société Anonyme).
National Funding State-funded Regions may contribute based on available resources.

The Pivot to Corporate Governance: AREP to SA

From a business perspective, the most significant structural shift is found in Article 128. The current Regional Project Execution Agencies (AREP) are slated to be transformed into “Regional Project Execution Companies”—essentially shifting from a government agency model to a Société Anonyme (SA), or public limited company.

This represents a strategic move toward “managerialism.” By adopting a corporate structure, these entities can theoretically operate with more agility, employ private-sector talent, and adhere to more rigorous auditing and transparency standards. To ensure these companies don’t become isolated ivory towers, an amendment from the Socialist Group ensures that the headquarters remain in the regional capital, with the ability to establish branches in various provinces to maintain a local presence.

However, the transition to a corporate model has raised concerns about governance. Lawmakers have called for stricter “incompatibility” rules for the Director General—who is appointed by the Interior Ministry—to prevent conflicts of interest and ensure that the profit-motive of an SA doesn’t overshadow the public-service mission of regional development.

A Gradualist Path to Autonomy

The overarching theme of the commission’s approval is “gradualism.” Minister Laftit was explicit: the goal is eventually to dot regions with all necessary competencies, but only through an approach that is “effective and not theoretical.” He warned that granting too many powers too quickly has historically complicated operational implementation on the ground.

A Gradualist Path to Autonomy
House of Representatives

By focusing on “integrated and quickly realizable” competencies, the government is attempting to build a track record of success before further decentralizing. For the regions, this is a slow climb toward autonomy; for the state, it is a controlled descent of power.

Disclaimer: This article discusses legislative changes and administrative law. It is provided for informational purposes and does not constitute legal or financial advice.

The bill now moves toward further parliamentary scrutiny and final adoption. The next critical checkpoint will be the full plenary session of the House of Representatives, where the final version of the organic law will be debated and voted upon before being sent to the House of Councillors.

Do you think a corporate structure (SA) is the right move for regional project execution, or does it risk prioritizing efficiency over equity? Share your thoughts in the comments below.

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