Industry, Mining & Retail
From The Report: Morocco 2014
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With an increasing focus on value-added export industries in manufacturing, Morocco has become one of Africa’s leading countries for industrial FDI. The 2009 strategic plan to bolster six designated segments by investing billions of dirhams and facilitating new investments, has drawn in sizable injections of capital and seen an increase in manufactured production, due to strong performance by the automotive and aeronautics sectors. There has been a push to improve performance in the mining sector, in part by encouraging upstream and downstream activity in a variety of metals and minerals. The government rolled out a comprehensive strategy for the sector in 2013, which aims to boost investment and expand capacity, as well as introduce a new mining code. The formal retail industry remains fairly limited, but it has been gathering steam over the past three years. A growing middle class and urbanisation rate, as well as a modernisation of consumer shopping habits bode well for the sector’s future. Major international brands and franchises are increasingly entering and expanding into Morocco, taking advantage of a significant rise in dedicated retail properties. This chapter contains interviews with Moulay Hafid Elalamy, Minister of Industry, Commerce, Investment and Digital Economy, and Hamid Benbrahim El Andaloussi, Chairman, Moroccan Aerospace Industries Group (GIMAS).

Articles from this Chapter

Overview

Adding value: Exports are driving the sector forward and drawing in FDI
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With an increasing focus on value-added export industries in manufacturing, industry in Morocco has transformed in recent years. This is in large part a result of the 2009 strategic plan to bolster six designated segments by investing billions of dirhams and facilitating new investments. The result has led to Morocco becoming one of Africa’s leading countries for industrial foreign direct investment (FDI). However, while the plan has drawn in sizable injections of capital and seen an increase in manufactured production, due to strong performance by the automotive and aeronautics sectors, other areas, such as textiles and pharmaceuticals,…

Viewpoint

Productive choices: Moulay Hafid Elalamy, Minister of Industry, Commerce, Investment and Digital Economy, on building capacity in the industrial sector
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Strategic choices and sector-specific initiatives have allowed Morocco to enter an era of sustained growth, perhaps most notably as a result of the National Pact for Industrial Emergence. Some 110,000 jobs were created between 2008 and 2011, while exports rose by 22% and infrastructure was upgraded. Foreign direct investment (FDI) in Morocco has also grown at an average annual rate of 23% since 2009. Consolidating the existing foundation of the sector and reinforcing Morocco’s role as a crossroads…

Interview

OBG talks to Hamid Benbrahim El Andaloussi, Chairman, Moroccan Aerospace Industries Group (GIMAS)
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Interview:Hamid Benbrahim El Andaloussi What comparative advantages can Morocco offer to foreign companies? HAMID BENBRAHIM EL ANDALOUSSI: The global aerospace sector is divided into Europe and North America, and an emerging China. Morocco is currently well positioned to penetrate the European market, taking advantage of the decline in competitiveness of Eastern European countries following their integration into the EU. As such, the kingdom has become an attractive and competitive base at…

Analysis

Greener pastures: Global population and economic growth are set to drive increasing demand for fertiliser
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The fertiliser sector in Morocco is largely export-oriented, as the high price for the product constrains the potential for increases in domestic demand. Global demand for fertiliser is expected to grow in the coming years due to international population and income growth, which will require an increase in agricultural inputs to ensure sufficient food supply. The shrinking size of arable land will increase crop rotations, which will decrease the level of soil nutrients needed to grow healthy crops. POSITIVE TRENDS: Combined, these factors will have a cascade effect on fertiliser demand, pushing it upward over the mid to long term. Furthermore,…

Overview

Updated prospects: The mining industry is preparing to implement a new mining code and sector strategy
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Mining is a key sector of the Moroccan economy, but for a long time it was synonymous with phosphates. The country possesses the largest phosphate reserves in the world and is one of the three largest global producers. Recently, however, there has been a push to improve performance in the sector, in part by encouraging upstream and downstream activity in a variety of metals and minerals. The government rolled out a comprehensive strategy for the mining sector in 2013, which aims to boost investment and expand capacity, as well as introduce a new mining code. Foreign investment in the sector has been fairly constrained by comparison to other…

Overview

A changing landscape: The market continues to expand, although consumer confidence has recently dipped
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The formal retail industry in Morocco remains fairly limited, but it has been gathering steam at an impressive pace over the past three years. A growing middle class and urbanisation rate, as well as a modernisation of consumer shopping habits bode well for the sector’s future potential. While the traditional and largely informal segment of the market will not disappear anytime soon, particularly in smaller cities and rural areas where the local market culture is more entrenched, major international brands and franchises are increasingly entering and expanding into Morocco, taking advantage of a significant rise in dedicated retail properties.…