Morocco debates minimum wage hikes and food price strategies

The Istiqlal Party has introduced a new economic and social strategy in Fez aimed at protecting household purchasing power in Morocco against rising food costs. Party Secretary General Nizar Baraka outlined a plan to combat inflation by establishing dedicated supply enterprises. These entities would purchase harvests directly from producers and sell them to retail markets at regulated margins to reduce intermediary costs. Additionally, the party proposes prioritizing domestic food supplies over agricultural exports to stabilize internal availability.

Parallel to these measures, a national debate has emerged regarding the potential increase of the minimum wage (SMIG) from 3,422.72 DH to 5,000 DH. While the proposed 46% increase aims to address the erosion of purchasing power, economists warn of potential side effects. Omar Kettani, an economics professor at Mohammed V University, noted that such a significant rise in labor costs must be matched by productivity gains to avoid fueling inflation or forcing businesses to raise prices and reduce investment.