The Moroccan industrial sector is flourishing and growing considerably. To promote the sector, the Moroccan Government announced a series of initiatives to improve the investment climate, with particular attention to off-shoring activities, automotive, aeronautics, electronics, food processing activities and textiles. Other important industrial sectors include mining, chemicals, construction materials and pharmaceuticals. The future of Morocco's industrial segment looks promising, particularly as new initiatives make it more globally competitive and in a variety of sectors:
The automotive sector has experienced over the last 5 years strong development in Morocco and has very important development opportunities for the next decade.
To exploit this potential, the industrial strategy aims to strengthen the attractiveness of the Kingdom through the definition of an “Offer Morocco” dedicated to equipment suppliers and manufacturers.
In February 2012, His Majesty King Mohammed VI inaugurated the Renault-Nissan Tangiers Plant with an industrial capacity of 400.000 cars per year. The Plant will generate 6.000 thousand direct jobs and 30.000 indirect ones. It intends also to attract investments towards the Tangiers’ free zone and boost local competences.
A second Free Zone and “Automotive City” is upon construction in the Kenitra region and will benefit from a high-level geographical and logistical location: 40 minutes from the airport of Rabat and on the line with the future Atlantic high speed rail.
The aeronautic industry is very promising in Morocco. It has become a regional hub for the aeronautic industry. The important incentives in the sector as well as the need to reduce cost led to the increase in the number of major companies choosing Morocco as a production platform from a few in 2000 to 50 today.
Some of companies that invested in the sector:
The Moroccan industrial strategy aims to strengthen the attractiveness of the Kingdom through the definition of an “Offer Morocco” plan in the field of electronics.
* Textile and garment products
At the heart of Emergence program, the textiles and clothing sector plays a major role in the country’s economy. It is the top industrial employer, providing about 200,000 jobs to 42% percent of the labor force working in the industry. Although it is facing fierce competition from Asian countries, China in particular, the sector is showing growth signs, thanks to the efforts made to maintain its competitiveness.
As part of the Emergence plan, the government has created a fund of an annual 20 million MAD earmarked for financing the development of the sector. The initiative aims at ameliorating the image of Moroccan products in the world markets, and attracting more foreign investors towards the Moroccan textile industry.
Textile represents 40% of industrial exports, which chalked up an increase of 15.3% in 2006, reaching MAD 27.8 billion, up from 24.1 in 2005. For the same year, Spain came first in terms of Moroccan textile products imported. It imported MAD 9.7 billion worth of products, a rise of 38.5% compared to 2005. France, which lost it leadership, came second, with MAD 8.5 billion, followed by Great Britain (MAD 4.6 billion), Germany (MAD 1.4 billion), Portugal and the United States, which doubled their imports compared to 2005, MAD 621 million and MAD 317 million, respectively.
The sector covers five types of activity:
* Food Industry
Morocco has entered the exclusive club of offshoring destinations recognized worldwide. Thus, Morocco destination is systematically considered in the majority of decisions offshoring and reference players have confidence in Morocco.
Providing “Internet Technology Outsourcing” and “Business Process Outsourcing” services, this Sector Based Policy is targeting 10 to 12 priority areas that are suited to strengthen Morocco’s offer in banking, insurance, accounting services, as well as customer services, human resources and several IT services.
This 10-year strategy is expected to reduce the trade deficit by 50% and contribute by an annual growth rate of 1.6%. The total cost amounted to 2 billion USD funded for three quarters by the state, and up to 470 million USD by the private sector. The Plan has set up 22 industrial units to be built according to international standards by 2015 and plans to rehabilítate existing industrial areas.