Morocco has steered significantresources towards large investments in economic sectorsidentified as strategic to growth, and for increasedproductivity and value addition. Despite Morocco’sstrikingly high investment rate, one of the highest in theworld at an average of thirty-four percent of gross domesticproduct (GDP) annually since the mid-2000s, the returns ineconomic growth, job creation and productivity, have beendisappointing. The Moroccan economy has performedparticularly poorly in terms of job creation. A more vibrantprivate sector is needed to create more jobs. This CPSDidentifies policy recommendations and investmentopportunities that would foster job creation by the formalprivate sector and improve labor supply in skills that wouldanchor Morocco as an emerging economy, to continue its pathof growth, and to move into higher value-added andinnovative sectors.