Casablanca, Morocco, March 10, 2022— Public and private sector companies in Morocco with diverse boards consisting of both men and women are more effective, according to a survey conducted by IFC and the Club des Femmes Administrateurs (CFA), with support from PwC.
Despite the benefits of diverse boards, the online survey of 133 board members found that most boards in Morocco are still dominated by men, and that boards of multinational corporations' subsidiaries in the country tend to be more diverse than those of family-owned businesses or public entities.
The survey's findings come as Morocco seeks to increase women's representation in decision-making positions. New legislation published in July 2021 stipulates that boards of companies receiving public investment, such as listed companies, must be composed of at least 30 percent women by January 2024 and 40 percent women by January 2027.
"This survey's findings show that there is a great level of awareness among board members about the benefits women members bring," said Amina Figuigui, President of CFA. "However, this awareness has not yet translated into action, and the number of women on boards in Morocco remains low. We hope that the survey's findings will encourage boards to become diverse and compliant with the new legislation."
"IFC works with companies to close gaps between women and men as business leaders, employees, consumers, entrepreneurs, and community stakeholders—driving business and economic growth and improving the lives of families and communities," said Georges Joseph Ghorra, IFC's Acting Country Manager for the Maghreb. "The survey findings show that companies in Morocco can do more to boost diversity on their boards and improve their governance. IFC stands ready to help companies bridge the gap."
The survey established its main finding—that diverse boards are more effective—by asking questions about the gender composition of boards in Morocco. The survey also developed a performance indicator based on several criteria, including the boards' functioning and practices, such as meeting procedures, as well as board composition and structure, such as the establishment and role of certain committees. A correlation was found between more diverse boards and those that scored high on the performance indicator.
The survey establishes a baseline and provides a body of data that other organisations can further explore.
IFC's partnership with Club des Femmes Administrateurs is part of IFC's Environmental, Social and Governance program in Morocco, which is being delivered under the MENA Private Sector Development initiative, a partnership with the Government of the Netherlands.
CFA is a non-profit organization that aims to promote greater women's representation on boards of public and private entities.
About IFC
IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2021, IFC committed a record $31.5 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of the COVID-19 pandemic. For more information, visit www.ifc.org.
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About CFA
Created in 2012, the Club des Femmes Administrateurs (CFA) brings together business leaders and executives. Its members sit on the board of directors of more than 300 public and private companies in Morocco. CFA promotes and develops women's access to directorships, supports women directors, promotes good corporate governance and lobbies public authorities for a better representation of women on the governance bodies of Moroccan companies.
