MOROCCO – The government of Morocco has announced a USD 27.5 million investment in advanced seawater desalination technology from US-based Energy Recovery to address water scarcity challenges impacting its agricultural sector.

This move is part of the country’s goal to secure half of its drinking water supply through desalination by 2030.

The new technology is expected to boost desalination capacity by 189%, producing more than 1 million cubic meters of potable water daily, up from the current capacity of 0.53 million cubic meters.

“While this investment is positive for addressing water shortages, the agricultural sector will still require additional infrastructure improvements to see significant benefits,” noted a recent Fitch Solutions report.

Tourism, which contributes around 7% of Morocco’s GDP, is one sector set to benefit from the expansion of desalination plants.

Tourist hubs like Agadir have already seen improvements, with water rationing reduced since the city’s desalination plant came online in 2021. However, agriculture—accounting for roughly 10% of GDP—faces more complex challenges.

“Agriculture is still largely rain-fed, with 80% of cultivated areas dependent on rainfall,” said the Fitch report. Recent droughts have dramatically impacted crop yields, especially for wheat.

Morocco’s wheat production dropped from 7.5 million tonnes in 2021/22 to just 2.7 million tonnes in 2022/23, cutting the country’s wheat self-sufficiency ratio from 71.8% to 27.1%.

The report cautioned that the benefits of desalination for agriculture would likely be limited in the near term unless more comprehensive water management systems are implemented.

Climate change is exacerbating Morocco’s water scarcity, and the situation is expected to worsen. The country’s reservoirs were at just 27.4% of capacity by late August 2024, despite heavy rains in typically dry regions.

This unpredictability, characterized by prolonged droughts and occasional intense rainfall, will increase the risk of natural disasters.

Morocco’s fresh produce sector has felt the impact of this water crisis. Crop yields have been significantly reduced, especially for winter crops and fruit trees.

According to the Fitch report, agriculture’s contribution to the national economy slowed, with year-on-year growth in the sector declining from 6.9% in early 2023 to 5.2% by the year’s end.

While Morocco’s desalination investments offer some hope, the agricultural sector remains vulnerable. Climate change is expected to bring hotter and drier conditions, with more extreme weather patterns becoming the norm.

“Water scarcity will continue to be a significant challenge for Morocco’s economy, particularly in agriculture,” the Fitch report concluded. Long-term solutions, such as diversified water infrastructure and sustainable farming practices, are crucial for the future stability of Morocco’s agriculture and overall economic health.

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