Sunday , April 18 2021

DH 4.5 billion programmed to support private investment in 2021

A turnover of 4.5 billion dirhams (MMDH) is programmed to support private investment in the agricultural sector by 2021, an increase of 7% compared to the previous year, according to the Ministry of Agriculture, Maritime Fisheries, Rural Development and Water and Forests.

Lthe employment program for 2021 amounts to 4.5 billion dirhams, an increase of 7% compared to the 2020 program (4.2 billion dirhams), which reflects the continuation of the state’s effort to support private investment in ‘the agricultural sector,’ the ministry said in a statement on March 25, meeting of the Technical Committee of the Agricultural Development Fund (FDA).

The meeting focused on the FDA’s financial and physical performance for fiscal year 2020 and the employment program for fiscal year 2021, the same source said.

The commission thus examined the agricultural investments made for the fiscal year 2020 and benefited from financial stimulus from the state. It also validated the Fund’s 2021 fiscal year work program.

The new “Green Generation 2020-2030” strategy launched by His Majesty The King in February 2020, provides for the establishment of new incentives to support the implementation, including a revision of the FDA incentive system, reminds the communicated .

The Commission noted with satisfaction the orientations of this review, focused on the farmer and focused in particular on simplifying procedures and ambitious digitization of services.

In addition, the ministry states that the record of performance shows a steady increase in agricultural investments made and has benefited from the various incentives offered by the fund, from 8.6 billion dirhams in 2019 to 9.7 billion dirhams in 2020.

This dynamic will continue during 2021, when the level of expected investment should be MAD 10 billion, marking the leverage effect generated by the FDA.

The inclusion of the incentive system and the privileged support for small farmers due to favorable incentive conditions have resulted in the predominance, since 2014, of the share of investments made at the level of small farms (less than 10 ha) which distributes 58% of the incentives in 2019 and 2020.

The commission noted with satisfaction the achievements made by the FDA’s financial support under the Agri-Food Industries Development Program Contract, jointly implemented by the Departments of Agriculture and Industry.

Thus, the FDA’s commitments amount to 602 million dirhams (MDH) for its contribution to the creation or upgrading of 178 units for the recovery of fresh agricultural products of plant or animal origin (20% on average investment).

The balance sheet to date of this contract program covers 267 projects (81% of target) for a total investment of 7.5 billion dirhams (63% of target) benefiting from public support (FDA as FDII) of 1, MAD 27 billion (57% of target).

These projects will enable the creation of approximately 19,850 FTEs (52% of target) and generate additional revenue of 22.2 billion dirhams (53% of target) including 28% for export.

The incentives spread through the FDA have also enabled the equipment to cover nearly 647,000 acres with localized irrigation to date, helping to improve the resilience of national agriculture in the face of climate change.

It is also about strengthening the level of mechanization of farms by purchasing 2,600 tractors on average per year over the period 2010-2020 and improving the national herd by supporting the production of sheep breeding animals. 54,000 head in 2010 to 234,000 head in 2020.

The committee is chaired by the Department of Agriculture and includes representatives from the Ministry of Economy, Finance and Administrative Reform, the Ministry of the Interior and Crédit Agricole du Maroc.

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