Investing in Morocco: Why Set Up Shop There?
17 September 2013
Read by 3243 persons
(www.infomediaire.ma) - The French business magazine "Dynamique Mag" has dedicated an article to business opportunities in Morocco for French companies. The full article is below:
In the business world, Morocco is well-known for its tourism. Posters on the metro, showing the beaches of Agadir or the Western Sahara desert, are evidence of this. It is true that the Moroccan tourism sector is attractive. Nevertheless, other business opportunities beyond the Mediterranean exist and are numerous.
It is this diversity of thriving sectors in the Moroccan economy that attracts investors, with France at the forefront. The country has modernized significantly in the last 10 years and plans to do the same in the next 10. Tourism, therefore, but also communications, transport, industry, and agri-food. But be careful! While France is well-positioned in the market, as the leading trading partner, with €8 billion in exchanges in 2012, it is closely followed by many countries: Spain, the Kingdom's leading supplier, but also Turkey, Italy... In short, serious competitors! In short, Morocco offers numerous investment opportunities, constant growth, and great opportunities for entrepreneurs! And it's right on our doorstep.
Strong Interest from French Businesses, Supported by the Government
In April 2013, François Hollande visited the Maghreb to foster contacts between Morocco and French SMEs. Numerous contracts were signed in various sectors: transport, agri-food, water treatment, renewable energies... French companies established in Morocco (including 36 CAC 40 companies) and future SMEs wishing to develop their business in this market (source: Ubifrance) will be able to benefit from these opportunities to develop their business. Morocco has already signed free trade agreements with the European Union, the United States, and the Agadir agreements with Turkey, Jordan, Tunisia, Egypt, and Palestine recently. Morocco even plans to break down its economic borders with the West African Economic and Monetary Union. An unprecedented opportunity to penetrate the vast African market, which, it must be repeated, will soon be unavoidable!
Moroccan Population: Young, Low-Cost, but Also Under-trained
64% of the Moroccan population is under 34 years old (source: Moroccan Agency for the Development of Investments). This young population constitutes not only a dynamic workforce but also a developing market. The average salary in Morocco is $327 per month, almost ten times less than the average salary in Spain (source: Moroccan Agency for the Development of Investments). However, there is a real lack of training. While significant progress has been made, particularly in industrial production, thanks to its excellent engineers, most of them work abroad.
Infrastructure Boom
Morocco has invested heavily in infrastructure in recent years. Investments are colossal and cover all areas. The country has built 1500 km of roads and motorways in ten years. The objective is to reach 1800 km by 2015, connecting all cities with more than 400,000 inhabitants. Casablanca's first tram line was recently completed, inaugurating a new era of development for the city. Two lines have been built in Rabat. A high-speed rail line (LGV) project connecting Tangier to Casablanca is even planned for 2015.
Morocco has 15 international airports, including those in Marrakech, Oujda, Fes, and Casablanca. Airport infrastructure is developing, as the country attracts more and more tourists each year. 95% of Moroccan foreign trade transits through its ports. This need for new infrastructure led Bouygues to build the Tangier-Med port, a great economic success. The latter has seen a 37% increase in container traffic (source: MAP, Moroccan news agency). Morocco aims to reach 8.5 million containers in 2017, the equivalent of Rotterdam's transit, the leading European port.
Sports: It's Sprint Time
The Africa Cup of Nations is approaching! Morocco has been selected to host the competition in 2015! On this occasion, the arrival of participants and especially the public creates needs in terms of accommodation and transportation: new stadiums, roads, bus lines, but also housing... The whole of Morocco will be buzzing to create the atmosphere and win the cup! It's up to you to seize the business opportunities that may arise from this continental event. A tip: while infrastructure seems to represent the bulk of orders, also consider services.
"Vision 2020", for Responsible Tourism
Morocco is not stingy with its programs. Vision 2020 should allocate €12 billion in investments to tourism to reach 20 million tourists by the chosen deadline (source: Ubifrance). This sector, a great natural strength of Morocco, requires a strategy. Tourism is indeed very sensitive to climate fluctuations and must be planned. The government wants to move towards environmentally friendly tourism that highlights the specificities of the regions. Numerous eco-friendly programs are planned and should interest SMEs that are competitive in terms of service quality. The Azur 2020 program, for example, plans to improve the country's seaside resorts.
Industry: A Call for SME Talent!
Morocco has made a great effort towards internationalization. Its interest in foreign investors has been largely demonstrated by the creation of free zones throughout major cities. Many large international companies have been attracted thanks to very flexible taxation. The Tanger Free Zone (TFZ), the country's first free zone, has seen many companies set up, including Groupe Mécanique Découpage, a Renault subcontractor. The P2I in Nouaceur, near Casablanca, should eventually house 300 companies and create 15,000 jobs. Finally, the Atlantic Free Zone project in Kenitra, completed last year, offers a free zone, which occupies about two-thirds of the project, and a free zone, the remaining third. The free zone offers attractive tax advantages.
Green Development in Vogue! Wind Power is Booming!
With the Green Morocco Plan, the country has decided to tackle agriculture. The objectives are clear:
• develop infrastructure, still insufficient but booming,
• find a single legal framework, as the current dispersion hinders implementation initiatives,
• train farmers, numerous but struggling to add value to their products.
France has undeniable know-how on this last point.
The Halieutis plan shows the same ambition regarding marine resources. The country aims to triple the sector's GDP by 2020 and make it more competitive, from landing to marketing.
French agricultural and food products already occupy a prominent place in the Moroccan market. But the sector needs modernization, and agri-food is a thriving sector in the country.
Morocco is heavily investing in renewable energies through a vast investment campaign. Numerous projects are underway. The National Office of Electricity and Water of Morocco (ONEE) has approved GDF's application for the construction of wind turbines in the south of the country, in Tarfaya, on the Atlantic coast.
Benefit from a Young and Dynamic Market
A Population Focused on New Technologies
The new communications sector offers certain opportunities. The mobile penetration rate is 97%, and there are 13 million Internet users, which is excellent for an African country (source: Moroccan Agency for the Development of Investments). The ambition to have towards such a young market is the same as in France. In the age of democratization of tablets and high-speed internet, the economy is diversifying at a rapid pace. The need for equipment in schools or businesses is being felt. Digital is a future market that is developing at a phenomenal rate.
Morocco, a Friendly Country
Is it necessary to recall the history that unites the French and Moroccan peoples? Numerous cultural and linguistic ties have been created through contact between these two countries. Nevertheless, as in any country, you will need to adapt to the customs. It is advisable to be well-informed about prices, as this brings greater credibility when making announcements and better competitiveness. An easy tip to apply: take the time for mint tea. Finally, setting up directly on site facilitates contact, especially since Morocco is only a strait away. It is easy to set up on your own, as administrative procedures are simple. To succeed, you will first need to offer quality products adapted to the Moroccan market.
Source: dynamique-mag.com
Infomaroc.net
Posted on September 17, 2013.
In the business world, Morocco is well-known for its tourism. Posters on the metro, showing the beaches of Agadir or the Western Sahara desert, are evidence of this. It is true that the Moroccan tourism sector is attractive. Nevertheless, other business opportunities beyond the Mediterranean exist and are numerous.
It is this diversity of thriving sectors in the Moroccan economy that attracts investors, with France at the forefront. The country has modernized significantly in the last 10 years and plans to do the same in the next 10. Tourism, therefore, but also communications, transport, industry, and agri-food. But be careful! While France is well-positioned in the market, as the leading trading partner, with €8 billion in exchanges in 2012, it is closely followed by many countries: Spain, the Kingdom's leading supplier, but also Turkey, Italy... In short, serious competitors! In short, Morocco offers numerous investment opportunities, constant growth, and great opportunities for entrepreneurs! And it's right on our doorstep.
Strong Interest from French Businesses, Supported by the Government
In April 2013, François Hollande visited the Maghreb to foster contacts between Morocco and French SMEs. Numerous contracts were signed in various sectors: transport, agri-food, water treatment, renewable energies... French companies established in Morocco (including 36 CAC 40 companies) and future SMEs wishing to develop their business in this market (source: Ubifrance) will be able to benefit from these opportunities to develop their business. Morocco has already signed free trade agreements with the European Union, the United States, and the Agadir agreements with Turkey, Jordan, Tunisia, Egypt, and Palestine recently. Morocco even plans to break down its economic borders with the West African Economic and Monetary Union. An unprecedented opportunity to penetrate the vast African market, which, it must be repeated, will soon be unavoidable!
Moroccan Population: Young, Low-Cost, but Also Under-trained
64% of the Moroccan population is under 34 years old (source: Moroccan Agency for the Development of Investments). This young population constitutes not only a dynamic workforce but also a developing market. The average salary in Morocco is $327 per month, almost ten times less than the average salary in Spain (source: Moroccan Agency for the Development of Investments). However, there is a real lack of training. While significant progress has been made, particularly in industrial production, thanks to its excellent engineers, most of them work abroad.
Infrastructure Boom
Morocco has invested heavily in infrastructure in recent years. Investments are colossal and cover all areas. The country has built 1500 km of roads and motorways in ten years. The objective is to reach 1800 km by 2015, connecting all cities with more than 400,000 inhabitants. Casablanca's first tram line was recently completed, inaugurating a new era of development for the city. Two lines have been built in Rabat. A high-speed rail line (LGV) project connecting Tangier to Casablanca is even planned for 2015.
Morocco has 15 international airports, including those in Marrakech, Oujda, Fes, and Casablanca. Airport infrastructure is developing, as the country attracts more and more tourists each year. 95% of Moroccan foreign trade transits through its ports. This need for new infrastructure led Bouygues to build the Tangier-Med port, a great economic success. The latter has seen a 37% increase in container traffic (source: MAP, Moroccan news agency). Morocco aims to reach 8.5 million containers in 2017, the equivalent of Rotterdam's transit, the leading European port.
Sports: It's Sprint Time
The Africa Cup of Nations is approaching! Morocco has been selected to host the competition in 2015! On this occasion, the arrival of participants and especially the public creates needs in terms of accommodation and transportation: new stadiums, roads, bus lines, but also housing... The whole of Morocco will be buzzing to create the atmosphere and win the cup! It's up to you to seize the business opportunities that may arise from this continental event. A tip: while infrastructure seems to represent the bulk of orders, also consider services.
"Vision 2020", for Responsible Tourism
Morocco is not stingy with its programs. Vision 2020 should allocate €12 billion in investments to tourism to reach 20 million tourists by the chosen deadline (source: Ubifrance). This sector, a great natural strength of Morocco, requires a strategy. Tourism is indeed very sensitive to climate fluctuations and must be planned. The government wants to move towards environmentally friendly tourism that highlights the specificities of the regions. Numerous eco-friendly programs are planned and should interest SMEs that are competitive in terms of service quality. The Azur 2020 program, for example, plans to improve the country's seaside resorts.
Industry: A Call for SME Talent!
Morocco has made a great effort towards internationalization. Its interest in foreign investors has been largely demonstrated by the creation of free zones throughout major cities. Many large international companies have been attracted thanks to very flexible taxation. The Tanger Free Zone (TFZ), the country's first free zone, has seen many companies set up, including Groupe Mécanique Découpage, a Renault subcontractor. The P2I in Nouaceur, near Casablanca, should eventually house 300 companies and create 15,000 jobs. Finally, the Atlantic Free Zone project in Kenitra, completed last year, offers a free zone, which occupies about two-thirds of the project, and a free zone, the remaining third. The free zone offers attractive tax advantages.
Green Development in Vogue! Wind Power is Booming!
With the Green Morocco Plan, the country has decided to tackle agriculture. The objectives are clear:
• develop infrastructure, still insufficient but booming,
• find a single legal framework, as the current dispersion hinders implementation initiatives,
• train farmers, numerous but struggling to add value to their products.
France has undeniable know-how on this last point.
The Halieutis plan shows the same ambition regarding marine resources. The country aims to triple the sector's GDP by 2020 and make it more competitive, from landing to marketing.
French agricultural and food products already occupy a prominent place in the Moroccan market. But the sector needs modernization, and agri-food is a thriving sector in the country.
Morocco is heavily investing in renewable energies through a vast investment campaign. Numerous projects are underway. The National Office of Electricity and Water of Morocco (ONEE) has approved GDF's application for the construction of wind turbines in the south of the country, in Tarfaya, on the Atlantic coast.
Benefit from a Young and Dynamic Market
A Population Focused on New Technologies
The new communications sector offers certain opportunities. The mobile penetration rate is 97%, and there are 13 million Internet users, which is excellent for an African country (source: Moroccan Agency for the Development of Investments). The ambition to have towards such a young market is the same as in France. In the age of democratization of tablets and high-speed internet, the economy is diversifying at a rapid pace. The need for equipment in schools or businesses is being felt. Digital is a future market that is developing at a phenomenal rate.
Morocco, a Friendly Country
Is it necessary to recall the history that unites the French and Moroccan peoples? Numerous cultural and linguistic ties have been created through contact between these two countries. Nevertheless, as in any country, you will need to adapt to the customs. It is advisable to be well-informed about prices, as this brings greater credibility when making announcements and better competitiveness. An easy tip to apply: take the time for mint tea. Finally, setting up directly on site facilitates contact, especially since Morocco is only a strait away. It is easy to set up on your own, as administrative procedures are simple. To succeed, you will first need to offer quality products adapted to the Moroccan market.
Source: dynamique-mag.com
Infomaroc.net
Posted on September 17, 2013.
