In fields as varied as education, health, financial services, agriculture, administration, and much more, digitization constitutes a genuine growth lever from which all of the economic actors stand to benefit. It offers opportunities not only to companies but also to citizens. In this era of big data, 5G, and digital technology, is the country ready to become a digital nation which shines on the continental scale?
As a real stake in competitiveness and development, the digitization of companies mandates appropriate governance. In a 4.0 economy which is in the making, where can Morocco actually claim its place? And what assessment can we really make of the situation following the implementation of Digital Morocco 2013 and Digital Morocco 2020?
Mixed Results
While considerable progress has been made in the area of on-line services or in the area of cutting-edge technological infrastructures, other aspects warrant real development and enhancement. Indeed, the accumulated delays have deepened the “digital gap,” resulting in steady regression in internal rankings. In 2018, for instance, Morocco lost 25 positions on the e-government development index (or, EDGI), published by the UN every two years, which places Morocco in the 110th position out of 193 countries analyzed. On the e-commerce register, Morocco is likewise called upon to progress, as it was worth 4.2 billion dollars in 2019, increasing only by 12% in comparison with 2018, according to Datareportal Report. In the face of such results, the country must mobilize to accelerate and catch up the delay, by setting up digital technology as a priority development stake at all levels of society.
Brakes to Digitization
In a note forwarded to the Government regarding the main orientations of the sought-after digital development by 2025, ADD, or the Agency for Digital Development pointed to different obstacles impeding development. One such has to do with the absence of an integrated vision of digital transformation. Another one relates to regulatory barriers which prevent widespread and large-scale use of digital platforms, in addition to the existence of some white zones which are yet to be covered. The Agency also points to other weaknesses, notably: low data debit, a limited use of data-centres, and shortage of high calibre profiles specialized in the various digital trade-lines.
In addition to the above, digital use by citizens, companies, and public administrations are still limited. Last but not least, and up to this day, the governance system has not been able to efficiently steer the implementation of digital programs. Needless to say, the challenges are multiple and the task of building a high-performance and all-inclusive digital nation seems colossal. While several public services have been digitized, such as the payment of bills, the settlement of the road-tax, driving license registration, the lodging of claims and complaints, and such like, the dematerialization efforts that are yet to be expended are huge indeed.
An Ambitious Roadmap
In the note it addressed to the Government, ADD traced the digital trajectory during the five years to come. It recommended the establishment of the following: a digital administration at the service of citizens and companies; a competitive economy ready to gain in performance by means of digital ecosystems; and, finally, an inclusive society thanks to the progress achieved in digital technology. The objectives are ambitious but realistic: they consist in drastically reducing citizens’ dissatisfaction with the quality of their interactions with public administration. The Agency provides for the establishment of more than 2,500 start-ups by 2025, for the purpose of enhancing gains in productivity. More broadly, ADD aims essentially to position Morocco as a Digital Technology Hub on the African continent and to propel the country to the top forty countries in the UN Online Service Index and the top three African countries in the digital sphere.
The Kingdom is perfectly aware of the fact that digitization is a key means to ensure the development of its economy, bearing in mind the role it plays in drawing investment, creating new jobs, and modernizing public services.
Major Challenges yet to be met
Digital transformation poses a number of challenges. First of all, there is a human resources challenge which entails building and developing high-level competencies so as to follow through such transformation. A national training plan should be started in this regard. The second challenge concerns the financing of this transformation. Before entertaining expectations about any return on investments, it is necessary to successfully invest and harness the requisite resources. Today, very small companies still lack the needed capacities and skills. Another formidable challenge resides in the upgrade of the existing technological infrastructures. Morocco should see to the establishment of advanced infrastructures such as very high debit, 5G, the governmental cloud, and regional data centres. Finally, the fourth challenge consists in developing an adapted regulatory frame bearing on electronic transactions, the protection of individual freedoms, and the prevention of cybercrime.
All of these work projects are crucial in the process of offering Moroccan companies such optimal conditions as would facilitate the implementation of their growth strategies. The digital transformation, which refers to a change affecting all the components of a company under the influence of technology, covers the entrepreneurial ecosystem in its entirety. Digitization is an absolute necessity and not a simple choice. Companies must imperatively transit to the digital era, regardless of the business areas in which they operate. And this change requires a cultural change that must be operated all over the company. The stakes of this revolution must be perfectly assimilated by top management so that it may be reflected on the company as a whole. The digitization of minds is a prerequisite of the transformation of tools and processes.
The companies which do not subscribe to the new dynamics of digital transformation run the risk of disappearing. The boom in new technologies has likewise heightened the demands of consumers who now require very high quality services, whilst shunning all kinds of constraints, starting with the constraint of making trip to get any service. The pathway of digital transformation leads to greater quality and swiftness.
High-tech Sectors:
The banking sector is on the right track and continues to transform swiftly. Besides, several projects materialise on a regular basis and Moroccan people seem to grow their trust in e-banking. As a result, the introduction of several initiatives in digital banking enhances financial inclusion.
The e-government sector, likewise, is increasingly revolutionizing the payment of taxes and levies, as seen for instance in the dematerialization of the road tax. In the same vein, telecommunications are in a very interesting dynamics, occupying as they are a considerable area in the digital sphere in Morocco.
The e-commerce sector is also evolving rapidly, with the emergence of new players on the market where competition is growing stronger. With an ever shrinking time to market, innovation, pro-activity, and adaptation to change are crucial to perennial development.
In the agricultural sector, digital technologies serve to improve productivity, the working conditions of farmers, and the traceability of foodstuffs. Nevertheless, digitization of agriculture has to cope with certain impediments due to the slowness in the decision-taking process as well as to unsuitable regulations. This is notably the case with the use of drones, the generalization of which is reined in by the applicable regulations. The digital transformation of the agricultural sector constitutes an opportunity to promote good governance in the sector and to boost economic growth in the Kingdom, thanks to information sharing and smart use of decision-taking aid tools.
The development of sector especially devoted to innovation and the automation of the production and operation processes will enable Moroccan companies to have a competitive advantage, and by way of consequence, ensure their permanence in high growth markets.
Synergies to be developed
In Africa, Rwanda serves as an example to emulate in the area of digital transformation. The momentum was given by the office of the head of state, which has played the role of facilitator. A “One-stop-platform,” baptised Irembo, provides governmental services to Rwandan citizens via three channels: Irembo Online Portal; Irembo Mobile USSD, and Irembo Agents’ Network. This platform is the fruit of an exemplary public-private partnership. With roughly 500 services available, the platform has largely been adopted by Rwandans.
As illustrated by the successful Rwandan example, the public and private sectors must work in tandem to build a winning digital economy and establish an innovation ecosystem. In February 2020, the inauguration of the first interactive digital center (IDC) in Morocco took place at the Mohammed VI University Polytechnic (UM6P). The center is the outcome of a close collaboration between EON Reality, a world leader in augmented and virtual reality-based knowledge and skills-transfer for industry and education; the United States Agency for International Development (USAID), with the support of the Ministry in charge of Industry, Trade, Green Economy and Digital (Technology); the Ministry of National Education, Vocational Training, Higher Education, and Scientific Research; the Agency for Digital Development (ADD), as well as Mohammed V University in Rabat. The collaboration between public authorities, the academic world, and industry leaders certainly contributes to technological revolution in Morocco. This digital center will enable Moroccan students to access the requisite technology in order to succeed in tomorrow’s labour market.
Given that Morocco has accumulated some delay in undertaking a digital revolution, it must now mobilize all the resources in order to position as a reference 4.0 nation. The work projects to carry out are certainly immense but necessary to propel the country’s economy into a new era. Driving change will be crucial in sensitizing and training all the actors in society and following them through during the digital revolution process.