Casablanca – Morocco is advancing a major reform of its energy and mining governance as part of broader efforts to strengthen national energy sovereignty, improve competitiveness, and reduce long-term dependence on external energy sources. The initiative comes at a time when the country’s energy bill remains elevated, reflecting both international market volatility and structural challenges linked to energy imports.

At the center of this reform is Draft Law No. 56.24, which proposes transforming the National Office of Hydrocarbons and Mines (ONHYM) into a joint-stock company. The government presents this step as an institutional shift designed to modernize the sector, enhance performance, and align Morocco’s energy and mining strategy with global best practices, while maintaining strong public oversight.

High energy costs and strategic priorities

Morocco remains heavily dependent on imported energy, particularly fossil fuels, which exposes the economy to external price shocks. This dependency has translated into a consistently high energy bill, placing pressure on public finances, businesses, and households. Authorities argue that reducing this structural vulnerability requires a combination of infrastructure investment, institutional reform, and long-term diversification of energy sources.

The proposed transformation of ONHYM is part of this broader strategy. By granting the institution greater managerial autonomy under a joint-stock company structure, policymakers aim to improve efficiency, accelerate project development, and strengthen partnerships with international investors, while preserving the strategic nature of the sector.

Government officials have emphasized that this reform is not a step toward privatization but rather an effort to modernize governance, enhance transparency, and ensure that the state retains a central role in shaping energy and mining policy.

Learning from past institutional reforms

The government has cited previous institutional transformations as evidence of the potential benefits of this approach. In particular, the evolution of the OCP Group — Morocco’s phosphate giant — into a joint-stock company is frequently referenced as a model. Following its restructuring, OCP significantly expanded its global footprint, improved financial performance, and strengthened its competitiveness in international markets.

Authorities believe that a similar governance framework could enable ONHYM to better position itself in a highly competitive global mining and energy environment, while continuing to serve national strategic interests.

Infrastructure as a pillar of sovereignty

Energy infrastructure plays a central role in Morocco’s sovereignty strategy. One key example is the Maghreb–Europe gas pipeline, which has been under Moroccan control since 2021. This infrastructure has proven critical in ensuring energy security, particularly during periods of international disruption.

During the global energy crisis triggered by the war in Ukraine, Morocco was able to maintain industrial activity and avoid widespread power shortages, in part due to its ability to manage and adapt its gas infrastructure. Authorities highlight this experience as evidence of the importance of sovereign control over strategic assets.

In parallel, Morocco is advancing the Nigeria–Morocco gas pipeline project, a long-term regional initiative aimed at connecting West African gas resources to North Africa and Europe via Moroccan territory. The project is expected to enhance regional integration, diversify supply routes, and strengthen Morocco’s position as an energy hub, while contributing to job creation and economic development along the corridor.

Reducing external dependence

A key objective of the reform agenda is to reduce Morocco’s dependence on neighboring countries for energy supplies. Policymakers have stressed the need to build a more autonomous and resilient energy system capable of withstanding geopolitical and market fluctuations.

In this context, the transformation of ONHYM is viewed as one component of a broader institutional and infrastructural architecture designed to support long-term energy security. By strengthening domestic capacities in exploration, production, and resource management, the government aims to reduce vulnerability and enhance strategic autonomy.

Addressing social and territorial challenges

Energy reform is also linked to social and territorial development goals. Authorities acknowledge that several regions across the country continue to face challenges related to access to electricity and energy services, which contributes to socio-economic vulnerability.

Improving infrastructure coverage, enhancing service quality, and ensuring affordability remain key priorities. The government has stated that institutional reform must ultimately translate into tangible benefits for citizens, including improved access to energy, greater reliability of supply, and better protection for consumers.

Safeguarding sovereignty and public interest

In response to concerns about potential privatization, government officials have reiterated that the reform preserves the sovereign and strategic nature of the energy and mining sectors. The Ministry of Energy Transition and Sustainable Development has confirmed that the draft law is designed to strengthen state control, not weaken it, and that public interest considerations remain central to the reform.

The stated objectives include improving governance efficiency, strengthening accountability, and aligning institutional performance with national development priorities, while ensuring that strategic decisions remain under public authority.

A broader climate and sustainability framework

Morocco’s energy governance reform also aligns with its broader climate and sustainability commitments. The country has positioned itself as a regional leader in renewable energy deployment, with significant investments in solar, wind, and green hydrogen projects.

Strengthening the governance of hydrocarbons and mining is seen as complementary to this transition, enabling better management of existing resources while accelerating the shift toward cleaner energy systems. Authorities argue that energy sovereignty, environmental sustainability, and economic competitiveness are mutually reinforcing objectives rather than competing priorities.

Outlook

The transformation of ONHYM into a joint-stock company represents a structural reform with long-term implications for Morocco’s energy and mining sectors. Combined with strategic infrastructure projects and a broader transition toward renewable energy, the reform reflects an integrated approach to strengthening energy security, enhancing competitiveness, and supporting sustainable development.

As the legislative process moves forward, the government’s challenge will be to translate institutional change into measurable outcomes, including reduced energy costs, improved service delivery, stronger investment performance, and greater resilience to external shocks. The success of this reform will ultimately be judged by its ability to balance efficiency with sovereignty, competitiveness with public interest, and economic growth with environmental sustainability.