Maroc Telecom votes on significant governance overhaul

Maroc Telecom shareholders will convene on June 18 to decide on a fundamental governance restructuring. The telecommunications company intends to transition from its dual-board framework to a unitary board system. This change is projected to consolidate the decision-making apparatus within the organization.

The proposal before shareholders would convert Maroc Telecom into a limited company with a board of directors. This would replace the current arrangement as a limited company with both a management board and a supervisory board, but approval must be secured at the upcoming mixed general assembly.

This governance reconfiguration marks a notable departure for the telecom provider, which has operated under the dual-board structure since its formation in 1998. The existing system creates a clear division between operational management and supervisory responsibilities.

Under the present arrangement, the management board, capped at five members, handles day-to-day operations. The supervisory board exercises continuous oversight. This dual mechanism is typically employed by major corporations, particularly in the banking, insurance, and telecommunications industries.

The contemplated single-board format would unify authority within one governing entity. In this model, the board of directors assumes both management and control functions. A president-director general (PDG) would wield broad powers to represent the company.

Directors elected by shareholders would oversee strategic initiatives and present management reports during general assemblies. This governance approach is characterized by its centralized command structure.

The transformation requires endorsement under quorum and majority rules for Extraordinary General Assemblies. Upon approval, the change would become effective following registration in the company’s commercial register.

The assembly agenda also includes amendments to the company’s articles of association. These would undergo modification article by article, then comprehensively. A new version would subsequently be adopted.

The June meeting will address the termination of current leadership positions as well. Both supervisory and management board members would conclude their duties once the governance alteration is officially registered.

This governance shift comes just three months after Mohamed Benchaaboun took the helm as the new chairman of the executive board. He replaced Abdeslam Ahizoune, whose 27-year tenure ended amid criticism for anti-competitive practices and a monopolistic approach.

Benchaaboun, formerly Director General of the Mohammed VI Investment Fund, is known for his consensus-building approach and previously headed the National Telecommunications Regulatory Agency (ANRT).

The structural changes also coincide with Morocco’s ambitious 5G rollout scheduled for November this year. The national plan aims to provide 5G access to 25% of the population by year-end, expanding to 70% by 2030.

This deployment supports Morocco’s preparations for hosting the 2025 African Cup of Nations (AFCON) and the 2030 FIFA World Cup, positioning the country as a regional digital innovation leader.

Maroc Telecom has also entered an unprecedented partnership with competitor Inwi, creating joint ventures for infrastructure development. The agreement includes FiberCo, which plans to install one million fiber optic connections within two years, and TowerCo, responsible for building 2,000 telecommunications towers by 2028.

This MAD 4.4 billion ($440 million) investment program marks a resolution to years of conflict between the operators, in which Maroc Telecom was ordered to pay MAD 6.38 billion ($638 million) in compensation to Inwi, now reduced to MAD 4.38 billion ($438 million) with the new agreement.