BEYOND THE VEIL - WOMEN ENTREPRENEURS IN MOROCCO

UNCLAS CASABLANCA 000163

SIPDIS
SENSITIVE

STATE FOR NEA/MAG
COMMERCE FOR NATHANIEL MASON

E.O. 12958: N/A
TAGS: ECON ETRD PGOV KWMN MO
SUBJECT: BEYOND THE VEIL - WOMEN ENTREPRENEURS IN MOROCCO

REF: A. 08 CASABLANCA 232

B. CASABLANCA 109


1. (SBU) Summary: By codifying women's rights to equal
participation in politics, society, and the economy, as well as
recognizing their right to education, King Mohammed VI has
positively altered the business climate for women in Morocco.
According to the Moroccan Association of Women Entrepreneurs, more
than 5,000 female entrepreneurs operate in the country's formal
economy and nearly 2.7 million women are part of Morocco's work
force. Working women play a particularly critical role in the
country's service sector, which employs more than 57 percent of the
female work force. Despite these achievements, the proportion of
women entrepreneurs remains very low, with less than one woman out
of a 100 owning a business. Discussions with civic society, women
CEOs, and government interlocutors indicate that the country's
bureaucratic red tape compounded with limited access to finance and
inadequate higher education constitute the biggest impediments for
female entrepreneurs in Morocco. Sources also contend that,
contrary to popular belief, gender discrimination and socio-cultural
barriers, while real, do not constitute a major obstacle. End
Summary.

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Women in Business Today
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2. (SBU) Since the beginning of Mohammed VI's reign ten years ago,
women's rights to equal participation in politics, society, and the
economy has been a critical component of his reform agenda (Septel).
Legislation such as the New Family Code (the Moudawana) transformed
relations between women and men in the public sphere (Ref A) and
altered the business climate for women in Morocco. According to the
Moroccan Association of Women Entrepreneurs (AFEM),nearly 2.7
million women are part of Morocco's work force, an estimated 75
percent of whom work in the informal market. This dominance of the
informal sector makes it difficult to accurately determine relative
contributions to the country's gross domestic product.
Nevertheless, it is clear that women are critical contributors to
the country's largest sectors: services, agriculture, and industry.
They play a particularly critical role in the country's service
sector, which employs 57 percent of the female work force.


3. (SBU) Women have also made significant advances in business
leadership and entrepreneurial development. According to AFEM, more
than 5,000 women entrepreneurs, whose businesses are primarily
located in Casablanca, operate in Morocco's formal economy. They
are highly educated with over 60 percent having obtained a
university or commercial degree. Although established in various
sectors of the economy, women-led and owned firms are generally
concentrated in the service sector and that of trade and
distribution. Bouthayna Iraqui, both a Member of Parliament and CEO
of a large medical supply company, told EconOff that female
entrepreneurs have benefited from the acquisition of managerial
competencies, the persistence of unemployment that has forced women
to seek independent employment, and the growth of the service
sector, where women generally have the know-how and expertise.

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Obstacles to Women's Progress
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4. (SBU) While women entrepreneurship has grown in Morocco, the
proportion of women-led and owned firms remains very low. Fewer
than one woman out of 100 owns a business. "It is clear that women
entrepreneurs play a far more important role in the country's
economic life than previously thought," said Soraya Badraoui, the
President of AFEM (Association des Femmes Chef d'Entreprises du
Maroc),"but there are still too few of them." Those few are the
country's urban elite women, the well educated and well-off,
admitted a well-placed source in Morocco's Business Federation.


5. (SBU) Unlike other countries in the Middle East and North
Africa, Moroccan women face no legal requirements such as a
husband's permission to travel or start a business. Salwa
Akheenouch, Zara's CEO in Morocco and, according to the Financial
Times, one of the Middle East's most influential women, said, "While
some social norms occasionally dampen female entrepreneurship,
gender discrimination does not constitute a major obstacle for women
entrepreneurs in Morocco." Rather, discussions with contacts in
civil society, government interlocutors, and women CEOs in Morocco,
reveal that the main obstacles faced by women wishing to establish
their own business are the same as those faced by their male
counterparts, bureaucratic red tape, limited access to financing,
and the difficulty of recruiting qualified workers needed to operate
a business (Ref B).


6. (SBU) Education presents another obstacle as women's
underrepresentation at higher grade-levels and persisting illiteracy
rates limit their choices in employment. (Note: Two of every five
women over the age of 15 are illiterate in Morocco. End Note.) For
those who manage to obtain higher levels of education, the education
system still has gender stereotypes directing women into
"appropriate" professional tracks such as social work and education,
according to a 2006 World Bank report. In addition, limited access
to financial management skills and technology within Morocco's
educational system limits women's entrepreneurial development
potential.

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Comment
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7. (SBU) Women play an important role as entrepreneurs in Morocco,
and will need to play an even larger role in the country's efforts
to create a modern and outward looking services sector. Success
will depend on wider access to education for women. The classroom,
particularly at the tertiary level and above, serve as a network
conduit for mentorship, partnership, and access to credit. A
national-level business incubator for women-led enterprises, similar
to the one implemented in Casablanca, may also encourage female
entrepreneurial development giving young innovative women the
technical and financial tools needed to operate a long-term
successful business. Such a project may be ripe for future support
from the Middle East Partnership Initiative or USAID. In general,
however, reforms that reduce the administrative barriers to starting
a business and give aspiring entrepreneurs expanded access to
finance are the best allies for women and men in business.

MILLARD