Foreign Investment: A Top Priority for Morocco, "Creating Added Value That Stays in the Country"
11 June 2015
Read by 2271 persons
Besides job creation, another priority for Morocco regarding investment is "creating added value that stays in the country," the Minister of Industry affirmed in a press conference this Tuesday, following a meeting with the investment commission to validate several projects. These projects will soon be launched, creating jobs and encouraging more and more partnerships between Moroccan and foreign operators. Details.
The Investment Commission approved "15 projects and amendments to investment agreements" this Tuesday, June 9th in Rabat, during a meeting chaired by the head of government, Abdelilah Benkirane, according to the press release issued at the end of the meeting.
These projects, as a whole, are valued at 24.77 billion dirhams and should create 3985 direct jobs according to the same source. The energy sector is the one that receives the largest share, 67%, followed by the tourism, real estate, and leisure sector (6.5%) and commerce (6%). But although it is the least affected by investments, this last sector remains the main provider of jobs with almost 2,500 positions, or 67% of the projected job creation, while tourism, real estate and leisure should generate 31% of jobs and 3% each for industry and energy.
Some of the added value must remain in Morocco
According to the Minister of Industry, Trade, Investment, and Digital Economy, Moulay Hafid Elalamy, there is nothing to worry about. "There are projects that generate few jobs but high added value, this is the case for energy projects which are also dominant among those selected," he explained in a press conference. In the selection of foreign investments, "we work with two essential elements: job creation and the creation of added value that remains in the Kingdom," he added, believing that Morocco's objective is being gradually achieved. The minister cites the example of Renault which, today, "buys 40% of its manufactured car from Morocco." According to Mr. Elalamy, the hope is to have such an integration rate for all foreign investments in the Kingdom.
Furthermore, the distribution of investments according to the origin of capital shows that 67% of the 15 projects selected by the Commission are joint ventures. Next come national investments (29%), then those from Saudi Arabia (3%) and the Netherlands (1%). "The progress of joint ventures is a very important sign for the country," the minister welcomed, stressing that foreign investors are increasingly partnering with Moroccans to launch projects. "Before, joint ventures in Morocco were much more common between foreigners. Today, national operators are becoming real partners for foreigners," he added.
... However, "no Moroccanization of projects"
However, when asked whether Morocco is somehow forcing foreign investors to partner with local companies, the minister replied negatively. "For us, it is not a question of Moroccanizing investments. We encourage foreigners to turn to local operators, but we do not oblige anyone to have a Moroccan partner," affirmed Mr. Elalamy.
According to him, foreigners themselves are increasingly seeking local partners because of their "technical skills, training capacity, mastery of the terrain and business environment" throughout the country. "Foreign operators are looking for qualified local operators and they find them," explained the minister, stressing that many countries do not have this advantage.
Morocco's Competitiveness is Attractive
The other highlight of the new projects soon to be implemented concerns their geographical distribution. 87% of them are concentrated in Souss-Massa-Drâa, followed by the Marrakech-Tensift-Al Haouz region (4%), Tangier-Tetouan (3%), the Oriental region (1%), and Doukkala-Abda (1%). According to the minister, the large number of energy projects - traditionally located in Souss - explains this distribution. However, he says he is "delighted," believing that it is also a response to the historical concentration of large-scale projects in Greater Casablanca in particular.
Also present at the press conference this Tuesday, the director general of the Moroccan Agency for the Development of Investments (AMDI), Hamid Benelafdil, recalled that the various investment agreements approved by the Commission will allow investors to "benefit from either customs exemptions, tax exemptions, or subsidies from the investment fund."
In passing, the authorities celebrated Morocco's competitiveness, now proven internationally, with the 2014 World Economic Forum (WEF) ranking in which the Kingdom gained 5 places, emerging as a leader in the Maghreb. "Every day we are approached by investors from all over the world who tell us that our country is competitive. Operators are looking at Morocco with great interest, even China," concluded the minister.
Ristel Tchounand.
Yabiladi.com
Published June 9, 2015.
Posted online June 11, 2015.
The Investment Commission approved "15 projects and amendments to investment agreements" this Tuesday, June 9th in Rabat, during a meeting chaired by the head of government, Abdelilah Benkirane, according to the press release issued at the end of the meeting.
These projects, as a whole, are valued at 24.77 billion dirhams and should create 3985 direct jobs according to the same source. The energy sector is the one that receives the largest share, 67%, followed by the tourism, real estate, and leisure sector (6.5%) and commerce (6%). But although it is the least affected by investments, this last sector remains the main provider of jobs with almost 2,500 positions, or 67% of the projected job creation, while tourism, real estate and leisure should generate 31% of jobs and 3% each for industry and energy.
Some of the added value must remain in Morocco
According to the Minister of Industry, Trade, Investment, and Digital Economy, Moulay Hafid Elalamy, there is nothing to worry about. "There are projects that generate few jobs but high added value, this is the case for energy projects which are also dominant among those selected," he explained in a press conference. In the selection of foreign investments, "we work with two essential elements: job creation and the creation of added value that remains in the Kingdom," he added, believing that Morocco's objective is being gradually achieved. The minister cites the example of Renault which, today, "buys 40% of its manufactured car from Morocco." According to Mr. Elalamy, the hope is to have such an integration rate for all foreign investments in the Kingdom.
Furthermore, the distribution of investments according to the origin of capital shows that 67% of the 15 projects selected by the Commission are joint ventures. Next come national investments (29%), then those from Saudi Arabia (3%) and the Netherlands (1%). "The progress of joint ventures is a very important sign for the country," the minister welcomed, stressing that foreign investors are increasingly partnering with Moroccans to launch projects. "Before, joint ventures in Morocco were much more common between foreigners. Today, national operators are becoming real partners for foreigners," he added.
... However, "no Moroccanization of projects"
However, when asked whether Morocco is somehow forcing foreign investors to partner with local companies, the minister replied negatively. "For us, it is not a question of Moroccanizing investments. We encourage foreigners to turn to local operators, but we do not oblige anyone to have a Moroccan partner," affirmed Mr. Elalamy.
According to him, foreigners themselves are increasingly seeking local partners because of their "technical skills, training capacity, mastery of the terrain and business environment" throughout the country. "Foreign operators are looking for qualified local operators and they find them," explained the minister, stressing that many countries do not have this advantage.
Morocco's Competitiveness is Attractive
The other highlight of the new projects soon to be implemented concerns their geographical distribution. 87% of them are concentrated in Souss-Massa-Drâa, followed by the Marrakech-Tensift-Al Haouz region (4%), Tangier-Tetouan (3%), the Oriental region (1%), and Doukkala-Abda (1%). According to the minister, the large number of energy projects - traditionally located in Souss - explains this distribution. However, he says he is "delighted," believing that it is also a response to the historical concentration of large-scale projects in Greater Casablanca in particular.
Also present at the press conference this Tuesday, the director general of the Moroccan Agency for the Development of Investments (AMDI), Hamid Benelafdil, recalled that the various investment agreements approved by the Commission will allow investors to "benefit from either customs exemptions, tax exemptions, or subsidies from the investment fund."
In passing, the authorities celebrated Morocco's competitiveness, now proven internationally, with the 2014 World Economic Forum (WEF) ranking in which the Kingdom gained 5 places, emerging as a leader in the Maghreb. "Every day we are approached by investors from all over the world who tell us that our country is competitive. Operators are looking at Morocco with great interest, even China," concluded the minister.
Ristel Tchounand.
Yabiladi.com
Published June 9, 2015.
Posted online June 11, 2015.
