At 93.7 billion dirhams in 2021, remittances from Moroccans living abroad are the country’s main source of foreign currency, relegating tourism far behind for two years. Note the merciless fight between the BCP and Attijariwafa Bank groups in this market.
Of the 342 billion in foreign exchange reserves expected this year in the coffers of the central bank, transfers from Moroccans residing abroad (MRE) or Moroccans of the World – according to the BCP nomenclature, at 87.3 billion dirhams – should still be the locomotive of the country’s ability to finance its external commitments and the structural deficit of its trade balance.
The money transferred to Morocco by the 5 million MRE represents 25% of the country’s official reserve assets, including gold reserves. It is by far, today, the first source of foreign currency in the Kingdom after the changeover in 2020 following the fall in tourism income caused by the cessation of activity due to the Covid-19 pandemic.
While foreign currency receipts from tourism were melting, remittances by MREs had shown an astonishing resilience which had surprised Bank Al-Maghrib: 68 billion DH in 2020 and 93 billion the following year to the point that its governor was committed to deciphering this “miracle” by questioning the bankers. One of the reasons for this resilience is due to the social shock absorber role played by MRE transfers. Out of 100 dirhams sent to Morocco, 80% is intended for family assistance.
At the height of the restrictions linked to the pandemic, there was a reflex of more solidarity on the part of Moroccans around the world towards their families who remained in Morocco, confides a banker who says he was “surprised by the explosion of his objectives” in a context of economic slowdown in the traditional centers of the Moroccan diaspora in Europe.
Until 2019, tourism kept transfers of Moroccans from around the world at a safe distance by an average difference of 1.5 to 4 billion over the last fifteen years, with the exception of the mano a mano noted in 2011 (see graphs). And again, this difference would probably be less important because it is slightly biased by the integration of manual exchange transactions carried out in Morocco in tourist receipts, whether the customer is non-resident or not.
Along with that of employment, the argument of providing the country with foreign currency was long put forward by tourism operators (especially in the hotel industry) to support the demand for incentive measures for the sector from the public authorities.
But the rise of Morocco’s other world trades in export, in particular the automobile and phosphates, ended up softening the argument of contributing to foreign currency reserves. And on the fiscal level, the Ministry of Finance, under the mandate of Benchaâboun, noted that tourism was a “small” contributor to Treasury receipts with regard to the package of tax relief from which it benefited.
As a result, it was decided to suspend any new tax expenditure targeting the tourism industry, much to the chagrin of the profession.
According to our information, this doctrine should not change. Beyond their social role, MRE funds constitute a strategic resource for the banking sector, of which they represent 40% of deposits. A “historic” operator in this market, the BCP group retains the lead with 100 billion dirhams of deposits in the accounts of the million MRE customers it claims (see our edition of Tuesday June 28, 2022).
But the competition is pressing and the “pioneer advantage” is slowly melting away. At AWB (Attijariwafa bank), the Moroccan diaspora is at the heart of its development strategy, the bank expressly points out in the 2021 Universal Registration Document for shareholders.
The group claims to position itself as “a benchmark player in terms of immigrant banking”. Thus, it has set up an economic model allowing it to serve and support customers in Morocco and in their country of residence. The results are rather convincing: in 2021, MRE deposits at Attijariwafa Bank amounted to 47 billion dirhams for just over 800,000 customers.
Taking advantage of the success of its model with MRAs in Europe, AWB has duplicated the same scheme with African diasporas from the countries where the group is present: Tunisians, Senegalese, Ivorians and Malians living in Europe now come under a strategic market for the bank.
Spain, new competition ground
With a Moroccan diaspora of nearly 700,000 people, Spain is a new battleground for Moroccan banks to capture transfers and savings from Moroccans living abroad. Attijariwafa Bank relies on the partnership with its shareholder, the Santander group.
The partnership covers, among other things, a backing of Attijariwafa Bank to the Santander group, to strengthen its positioning with customers of Moroccans residing in our Iberian neighbour. The actions relate mainly to the development of a diversified offer in favor of Moroccans living abroad, in the areas of money transfer, consumer credit, electronic banking and provident insurance.
On the commercial level, this translates into the establishment of AWB offices dedicated to MREs, in part of the Santander group network.
Abashi Shamamba / ECO Inspirations
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