In its latest report on Morocco, the World Bank raises the delay of the Kingdom in the ICT sector compared to the countries it considers as competitors in this area, particularly in terms of broadband penetration.

The World Bank believes that the development of the digital economy in Morocco can only be achieved by taking up the challenge of improving access to broadband, in particular fixed broadband.

She explains that: Fixed broadband carries significantly more traffic than wireless networks and offers faster speeds and greater reliability, essential for the digital economy. When broadband is more widely available, labor productivity increases in services and industry.

Broadband could play a decisive role in improving the quality of services, particularly in the education and health sectors. The institution also believes that the agricultural, automotive and aeronautical industries are deeply affected by the use of ICT (Information and Communication Technologies) in their manufacturing process.

The development of the digital economy would contribute to a modern public administration by introducing digital public services accessible to all, which will reduce the complexity of administrative procedures, as well as corruption.

Here are some points raised by the Bank regarding the delay in the development of the digital economy in Morocco:

The report highlights Morocco's delay in the ICT sector compared to the countries it considers to be competitors in this area, particularly in terms of broadband penetration.

This delay is explained by the lack of competition, incomplete and ineffective regulation and under-investment in fixed infrastructure.

According to the bank, the broadband penetration rate in Morocco is one of the lowest in the MENA region: 17.5% for households for fixed broadband and 41% of the population for mobile broadband in 2015 against a regional average of 41 and 85 percent in respective order.

Morocco's broadband penetration rate is also lower than in some Eastern European countries, where rates are close to 50% for fixed and 100% for mobile.

Among the elements that have not allowed a strong expansion of the digital economy, the Bank cites the rapid development of the mobile telephony market over the past 15 years.

The mobile penetration rate (number of SIM cards relative to the population) reached 127% at the end of March 2019, according to ANRT statistics.

For the World Bank, this market is saturated, it is no longer growing.

The report points out that the limited number of operators in the telecommunications sector reflects incomplete and inefficient regulation of the sector.

"Maroc Telecom owns the fixed transmission network and has invested heavily in the fiber optic network, while other operators have only invested modestly in fixed infrastructure", underlines the bank, adding that "this reflects both their lack of interest and the fact that the local copper loop unbundling policies put in place by the National Telecommunications Regulatory Agency (ANRT) for more than ten years have not been implemented. Competition in the field of high-speed Internet thus remains limited. The development of mobile payment, which is an essential element to support the growth of the digital economy, is lagging behind in Morocco.