Industrial Emergence: Details of Support Measures
2 October 2007
Read by 1533 persons
- Boosting sectors with strong competitive advantages
- Targeting automotive, aeronautics, electronics, textiles, and leather
- Installation aid of 10% to 20% of investment
The accounts are balanced. Fifty-six measures for Morocco's global industries alone, including 28 for those oriented towards foreign investment (offshoring, automotive subcontracting, electronics, and aeronautics) and as many for traditional industries (textiles and leather). Forty-eight are intended to strengthen the competitiveness of businesses, particularly in business climate aspects for 17 measures (see p. 6), training (14), SME competitiveness (12), and integrated industrial parks (5 measures). The governance and execution of the new pact benefit from 7 measures, including 1 for monitoring. The institutional organization around this project, the observatory, and the budget each have 2 measures. Note that for the various sectors that need to attract foreign investment, the State has agreed to implement an attractive incentive framework through the free zone status and installation aid amounting to 10% of the total investment amount. In addition to a marketing budget benefiting the sectors that need it.
56 measures for Morocco's global industries
Offshoring.
For the Morocco Offshoring offer, these new measures have enabled the State to renew its commitment to maintaining its competitiveness, dynamically, around three aspects: an attractive incentive framework concerning effective income tax, capped at 20%; a system for developing qualified human resources; and an infrastructure and services offer for investors to the highest standards, through the development of 6 dedicated offshoring zones.
The training component will provide 70,000 graduates, including 1,000 managers, 3,000 engineers, 10,000 technicians, and 55,000 administrative staff. The 3 other measures commit the State to implementing a targeted communication strategy around the Morocco offer and endowed with a substantial marketing budget that will support the marketing efforts of P2I managers; it is also about approaching key players in the sector and will call upon skills to sell the Morocco destination. Also on the menu is the development of sufficient reception capacities to support the sector's development. The 6th measure commits the private sector to supporting and amplifying the State's promotional efforts, as a partner in the organization, a force for proposals, and with active participation in the actions to be jointly programmed.
Automotive subcontracting.
The sector has experienced strong development in Morocco on both the equipment supplier and assembler fronts over the last 5 years. The measures adopted aim to encourage the establishment of Tier 2 and 3 equipment suppliers. This involves moving towards the assembly of specialties (heavy trucks, buses, coaches, bodywork, and other niche specialties). And the attraction of a second major manufacturer in Morocco in the long term to realize the Kingdom's potential highlighted by the establishment of the first manufacturer (Renault project in Tangier). The estimated impact of this potential amounts to nearly 12 billion DH in additional GDP and would result in the creation of around 70,000 jobs across the sector by 2015.
The challenge is to "establish Morocco as a future industrial base for the international automotive sector." To this end, the signatories of the pact have devised an action plan: a Morocco equipment supplier offer (an attractive incentive framework through the free zone status and installation aid amounting to 10% of the total investment amount; a training plan adapted to the needs of the sector; a diversified real estate offer that meets the highest international standards within P2Is); a Morocco specialty manufacturer offer (among other things, the State undertakes to reserve a land capacity of around 300 hectares for the establishment of a future assembly site, a logistics offer...); a training program adapted to the sector (70,000 graduates); the promotion of Morocco's global industries in the sector by dedicating a marketing budget; integrated industrial platforms (Tanger Automotive City, which will be developed over nearly 300 hectares to generate 15,000 jobs by 2015 and Kenitra Automotive City, over 300 hectares for 15,000 jobs as well).
Electronics.
The sector's growth potential is estimated at nearly 2.5 billion DH in additional GDP. It should allow the creation of 9,000 direct jobs by 2015. For this sector, the State undertakes to encourage banks to put in place a financing offer adapted to the needs of the target companies. The training plan provides for 9,000 graduates, including 4,700 operators, 2,700 technicians, 1,400 engineers, and 200 managers. Five dedicated districts house the Morocco electronics reception offer. The first (mechatronics and industrial electronics) is planned in the Zenata-Nouaceur corridor in the Casablanca region. The others, dedicated to on-board electronics in automotive P2Is, will be in Tangier, Kenitra, Nouaceur aerospace city, and in the Mohammedia electronics cluster.
Textiles and leather.
The sector accounts for nearly 40% of industrial jobs and contributes 13% to GDP and industrial exports for textiles and 27% for leather. For textiles, the number of jobs is estimated at just over 200,000 jobs for 9.6 billion DH of GDP. The potential for additional growth, meanwhile, is estimated at 1 billion GDP and the creation of around 32,000 new direct jobs by 2015. Among the key measures to boost the sector is the State's commitment to initiating an aggressive export promotion plan, in coordination with professionals. This strategy aims to intensify promotion towards major European clients in each of the 3 targeted product categories.
For the fast fashion and ready-to-wear fashion segment, it is a matter of intensifying promotion towards the 100 priority clients, in particular brands and large distribution networks. And also focusing the promotional effort on the 30 European brands specializing in jeans and sportswear and on the large distribution networks. The lingerie, home textiles, and footwear segments will benefit from promotion to the 50 brands specializing in each segment. The recommended measures commit the State to putting in place an attractive Morocco sourcing offer for the target players. By initiating a success bonus related to the size of the export activity with a base of Moroccan subcontractors; or by approaching international sourcing agents. Similarly, the State undertakes to organize, with the aim of encouraging the emergence of national sourcing agents, a roadshow aimed at potential investor categories, and in priority the large textile and leather companies. Objectives: present the existing opportunities in this activity and guide them towards the various support instruments put in place to support them; encourage the availability of inputs (fabrics and accessories). To this end, the public authorities declare that they will encourage the establishment of 15 supply platforms and 5 new finishing units in key trades (dyeing, printing). This offer includes installation aid amounting to 20% of the investment amount. Finally, the private sector undertakes, with the aim of encouraging the emergence of FIT units, to organize promotional and awareness-raising roadshows for potential investors, in priority for textile companies operating upstream in the sector.
Aeronautics
The sector concentrates real centers of excellence covering production, services, maintenance, and engineering. The number of establishments has increased significantly in recent years with cumulative investments since 2002 of 2.7 billion DH. The sector now has more than 60 companies with a turnover of 6.6 billion DH in 2008. It employs more than 7,000 people and concentrates industries integrating increasingly more added value. The estimated development potential of the sector amounts to approximately 4 billion DH in additional GDP and would result in the creation of around 15,000 new direct jobs by 2015. Among the measures adopted is the State's commitment to encouraging banks for a financing offer in line with the sector's needs. The training plan provides for 300 managers, 1,900 engineers, 3,000 technicians, and 9,800 operators.
Bachir THIAM
Posted on February 19, 2009
leconomiste.com
- Targeting automotive, aeronautics, electronics, textiles, and leather
- Installation aid of 10% to 20% of investment
The accounts are balanced. Fifty-six measures for Morocco's global industries alone, including 28 for those oriented towards foreign investment (offshoring, automotive subcontracting, electronics, and aeronautics) and as many for traditional industries (textiles and leather). Forty-eight are intended to strengthen the competitiveness of businesses, particularly in business climate aspects for 17 measures (see p. 6), training (14), SME competitiveness (12), and integrated industrial parks (5 measures). The governance and execution of the new pact benefit from 7 measures, including 1 for monitoring. The institutional organization around this project, the observatory, and the budget each have 2 measures. Note that for the various sectors that need to attract foreign investment, the State has agreed to implement an attractive incentive framework through the free zone status and installation aid amounting to 10% of the total investment amount. In addition to a marketing budget benefiting the sectors that need it.
56 measures for Morocco's global industries
Offshoring.
For the Morocco Offshoring offer, these new measures have enabled the State to renew its commitment to maintaining its competitiveness, dynamically, around three aspects: an attractive incentive framework concerning effective income tax, capped at 20%; a system for developing qualified human resources; and an infrastructure and services offer for investors to the highest standards, through the development of 6 dedicated offshoring zones.
The training component will provide 70,000 graduates, including 1,000 managers, 3,000 engineers, 10,000 technicians, and 55,000 administrative staff. The 3 other measures commit the State to implementing a targeted communication strategy around the Morocco offer and endowed with a substantial marketing budget that will support the marketing efforts of P2I managers; it is also about approaching key players in the sector and will call upon skills to sell the Morocco destination. Also on the menu is the development of sufficient reception capacities to support the sector's development. The 6th measure commits the private sector to supporting and amplifying the State's promotional efforts, as a partner in the organization, a force for proposals, and with active participation in the actions to be jointly programmed.
Automotive subcontracting.
The sector has experienced strong development in Morocco on both the equipment supplier and assembler fronts over the last 5 years. The measures adopted aim to encourage the establishment of Tier 2 and 3 equipment suppliers. This involves moving towards the assembly of specialties (heavy trucks, buses, coaches, bodywork, and other niche specialties). And the attraction of a second major manufacturer in Morocco in the long term to realize the Kingdom's potential highlighted by the establishment of the first manufacturer (Renault project in Tangier). The estimated impact of this potential amounts to nearly 12 billion DH in additional GDP and would result in the creation of around 70,000 jobs across the sector by 2015.
The challenge is to "establish Morocco as a future industrial base for the international automotive sector." To this end, the signatories of the pact have devised an action plan: a Morocco equipment supplier offer (an attractive incentive framework through the free zone status and installation aid amounting to 10% of the total investment amount; a training plan adapted to the needs of the sector; a diversified real estate offer that meets the highest international standards within P2Is); a Morocco specialty manufacturer offer (among other things, the State undertakes to reserve a land capacity of around 300 hectares for the establishment of a future assembly site, a logistics offer...); a training program adapted to the sector (70,000 graduates); the promotion of Morocco's global industries in the sector by dedicating a marketing budget; integrated industrial platforms (Tanger Automotive City, which will be developed over nearly 300 hectares to generate 15,000 jobs by 2015 and Kenitra Automotive City, over 300 hectares for 15,000 jobs as well).
Electronics.
The sector's growth potential is estimated at nearly 2.5 billion DH in additional GDP. It should allow the creation of 9,000 direct jobs by 2015. For this sector, the State undertakes to encourage banks to put in place a financing offer adapted to the needs of the target companies. The training plan provides for 9,000 graduates, including 4,700 operators, 2,700 technicians, 1,400 engineers, and 200 managers. Five dedicated districts house the Morocco electronics reception offer. The first (mechatronics and industrial electronics) is planned in the Zenata-Nouaceur corridor in the Casablanca region. The others, dedicated to on-board electronics in automotive P2Is, will be in Tangier, Kenitra, Nouaceur aerospace city, and in the Mohammedia electronics cluster.
Textiles and leather.
The sector accounts for nearly 40% of industrial jobs and contributes 13% to GDP and industrial exports for textiles and 27% for leather. For textiles, the number of jobs is estimated at just over 200,000 jobs for 9.6 billion DH of GDP. The potential for additional growth, meanwhile, is estimated at 1 billion GDP and the creation of around 32,000 new direct jobs by 2015. Among the key measures to boost the sector is the State's commitment to initiating an aggressive export promotion plan, in coordination with professionals. This strategy aims to intensify promotion towards major European clients in each of the 3 targeted product categories.
For the fast fashion and ready-to-wear fashion segment, it is a matter of intensifying promotion towards the 100 priority clients, in particular brands and large distribution networks. And also focusing the promotional effort on the 30 European brands specializing in jeans and sportswear and on the large distribution networks. The lingerie, home textiles, and footwear segments will benefit from promotion to the 50 brands specializing in each segment. The recommended measures commit the State to putting in place an attractive Morocco sourcing offer for the target players. By initiating a success bonus related to the size of the export activity with a base of Moroccan subcontractors; or by approaching international sourcing agents. Similarly, the State undertakes to organize, with the aim of encouraging the emergence of national sourcing agents, a roadshow aimed at potential investor categories, and in priority the large textile and leather companies. Objectives: present the existing opportunities in this activity and guide them towards the various support instruments put in place to support them; encourage the availability of inputs (fabrics and accessories). To this end, the public authorities declare that they will encourage the establishment of 15 supply platforms and 5 new finishing units in key trades (dyeing, printing). This offer includes installation aid amounting to 20% of the investment amount. Finally, the private sector undertakes, with the aim of encouraging the emergence of FIT units, to organize promotional and awareness-raising roadshows for potential investors, in priority for textile companies operating upstream in the sector.
Aeronautics
The sector concentrates real centers of excellence covering production, services, maintenance, and engineering. The number of establishments has increased significantly in recent years with cumulative investments since 2002 of 2.7 billion DH. The sector now has more than 60 companies with a turnover of 6.6 billion DH in 2008. It employs more than 7,000 people and concentrates industries integrating increasingly more added value. The estimated development potential of the sector amounts to approximately 4 billion DH in additional GDP and would result in the creation of around 15,000 new direct jobs by 2015. Among the measures adopted is the State's commitment to encouraging banks for a financing offer in line with the sector's needs. The training plan provides for 300 managers, 1,900 engineers, 3,000 technicians, and 9,800 operators.
Bachir THIAM
Posted on February 19, 2009
leconomiste.com
