Casablanca – Fatima Ezzahra El Mansouri begins her mandate as Morocco’s new head of government at a time when the country is recording relatively strong economic growth while facing persistent pressures over employment, public services, living costs and regional disparities.

Appointed by King Mohammed VI on September 29, El Mansouri became the first woman to head Morocco’s government after her Authenticity and Modernity Party (PAM) emerged as the largest party in the September 23 legislative elections. PAM won 97 of the 395 seats in the House of Representatives, followed by the National Rally of Independents with 66 seats and Istiqlal with 65. The Justice and Development Party secured 54 seats. The results mean that El Mansouri must build a parliamentary coalition rather than govern with a single-party majority.

Her appointment follows a political career spanning nearly two decades. Born in Marrakech in 1976, El Mansouri trained as a lawyer and joined the Marrakech Bar in 2005. She entered politics in 2007, became a founding member of PAM in 2008 and served as president of the Marrakech municipal council from 2009 to 2015 and again from 2021. She was also a member of Parliament between 2011 and 2021, chaired PAM’s National Council from 2015 to 2024 and became coordinator of the party’s collective leadership in 2024.

She entered the government in 2021 as minister responsible for national territorial planning, urban planning, housing and city policy, a portfolio closely connected to several of the issues that are now likely to dominate her premiership.

Her first task will be political. With PAM holding 97 seats, coalition negotiations will determine the composition of the new administration and the parliamentary support available for its legislative program. The final election results confirmed PAM in first place, with RNI and Istiqlal following closely behind.

The composition of the government will matter because the new administration inherits a wide policy agenda. Housing, employment, healthcare, education, social protection, infrastructure and purchasing power all require substantial public resources, while the government must maintain fiscal discipline and respond to changing international economic conditions.

Employment is likely to be among the most closely watched issues. Morocco’s economy has expanded in recent years, supported by services, tourism, construction, agriculture and export-oriented activities, but job creation has remained uneven. Recent unemployment data cited for the second quarter of 2026 put the national unemployment rate at 9.5%, while young people have faced considerably greater difficulty entering the labor market.

The challenge is particularly significant because the demographic pressure is concentrated among younger Moroccans. Employment opportunities for graduates, first-time job seekers and young people outside the main economic centers remain a major social concern. The government will therefore face pressure to translate investment and economic growth into jobs that are accessible across regions and skill levels.

This issue also has a regional dimension. Economic activity is concentrated in major urban areas, while some rural and peripheral regions continue to face weaker access to employment, healthcare, education and transport. El Mansouri’s previous experience in territorial planning and urban policy gives her a background directly connected to this problem, but addressing regional disparities will require coordination across several ministries and sustained public investment.

Education and healthcare represent another major part of the social agenda. Public dissatisfaction with the quality and accessibility of these services has featured prominently in recent political debates. The new government will have to balance infrastructure spending with the recruitment and retention of teachers, doctors and other public-sector professionals. It will also need to improve the distribution of services between large cities and less-developed areas.

Housing will remain another important file for El Mansouri, given her previous ministerial responsibilities. Morocco has expanded housing assistance, with more than 105,000 beneficiaries recorded by early June 2026. The challenge now extends beyond increasing the number of households receiving support. Authorities must also address land availability, construction costs, access to urban infrastructure and the supply of affordable housing in areas where demand is strongest.

Purchasing power will add another layer of pressure. Inflation has remained relatively contained in 2026, but low headline inflation does not necessarily eliminate concerns about household budgets. Bank Al-Maghrib projected average inflation at 0.7% for 2026 while forecasting economic growth of 4.4%. The central bank also kept its policy rate at 2.25% in September.

The government will therefore enter office with a relatively favorable macroeconomic environment in terms of growth and inflation, but with households continuing to monitor food, housing, transport and other essential expenses. Maintaining price stability while supporting incomes and employment will require careful coordination between fiscal, monetary and social policies.

External trade presents another economic challenge. During the first seven months of 2026, Morocco’s goods imports rose 15.9% to about $56.1 billion, while exports increased 8.4% to around $30.8 billion. The resulting trade deficit reached roughly $25.3 billion, up 26.5% from a year earlier.

The composition of trade provides both strengths and vulnerabilities. Automotive exports reached about $11.0 billion during the period, while aerospace exports rose strongly. At the same time, the energy import bill increased substantially, leaving the economy exposed to international energy prices. Phosphate and derivative exports also declined during the period, while textiles and leather recorded weaker performance.

For the new government, the challenge will be to continue attracting investment and expanding export capacity while limiting exposure to external shocks. This will involve maintaining Morocco’s position in European manufacturing supply chains, expanding newer export activities and improving domestic production of goods that currently require large imports.

Energy security will remain particularly important. Higher international energy prices can quickly affect the trade balance and production costs. The government’s economic strategy will therefore intersect with longer-term efforts to expand renewable energy, develop green hydrogen projects and reduce dependence on imported fossil fuels.

Agriculture presents a different set of challenges. Morocco’s agricultural performance remains highly dependent on rainfall and water availability. Better rainfall has supported expectations for a stronger agricultural season in 2026, but the structural problem of water scarcity remains. The government will have to balance agricultural production, rural employment and export ambitions with increasingly limited water resources.

Tourism provides one of the stronger sources of foreign exchange and employment. Morocco recorded strong visitor growth in 2025 and continued to expand tourism activity in 2026. Tourism receipts reached about $8.1 billion during the first seven months of 2026, according to foreign-trade data.

The sector’s expansion also creates pressure on transport, accommodation, water supplies, urban services and local infrastructure. The new government will have to manage this expansion while ensuring that tourism investment contributes to employment and regional development beyond the largest established destinations.

Another major responsibility will be preparation for the 2030 FIFA World Cup, which Morocco will co-host with Spain and Portugal. The event involves major investments in stadiums, airports, railways, roads, hotels and urban infrastructure. These projects can support construction and employment, but they also require close control of costs, deadlines and public resources. The government will have to reconcile World Cup-related investment with spending on everyday public services.

Infrastructure investment is already a significant component of Morocco’s development strategy. The country is simultaneously expanding transport networks, airports, ports, energy infrastructure and urban facilities. For El Mansouri’s government, one of the central questions will be how to ensure that large infrastructure programs generate durable economic activity rather than simply temporary construction jobs.

Fiscal policy will consequently remain an important constraint. Morocco has expanded social protection and household support programs while continuing to invest heavily in infrastructure. The government will need to finance these commitments without allowing public finances to come under excessive pressure. This will require decisions about spending priorities, tax revenues, public-sector efficiency and the role of private investment.

The social dimension of the new government’s mandate is closely connected to these economic questions. Faster growth can improve government revenues and employment opportunities, but its effects depend on where investment is located, what types of jobs are created and how effectively public services reach households.

El Mansouri’s appointment also carries a distinct institutional dimension. Her arrival at the head of government marks the first time a woman has held the position in Morocco. The significance of the appointment will therefore extend beyond the composition of the new cabinet. Expectations surrounding women’s participation in political decision-making are likely to increase, while the new government will also face pressure to address employment and economic participation among women.

The next phase will consequently involve several parallel tasks: forming a workable coalition, defining the government’s program, addressing employment and public services, maintaining economic growth, managing public finances and delivering large infrastructure projects. These challenges will unfold against an international environment marked by energy-price uncertainty and changing global demand.

El Mansouri enters office with experience in municipal government, Parliament, party leadership and the executive branch. Her previous responsibilities in territorial planning and housing are particularly relevant to several of the government’s immediate domestic challenges. The effectiveness of the new administration, however, will depend on the policies it adopts, the parliamentary support it secures and its ability to translate investment and economic growth into employment, public services and improved living conditions across Morocco.