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www.ukti.gov.uk
Want to do business in Morocco? Talk to us
Trade: Exporting to the world
The EU will begin negotiating a Deeper Comprehensive Free Trade Agreement (DCFTA) with Morocco in 2012 with the objective of progressive integration of Morocco’s economy into the EU single market. Morocco has also signed FTAs with the US, Turkey, Jordan, Tunisia and Egypt and is expanding business ties with Sub-Saharan African countries. Britain is one of Morocco’s oldest partners and was their main trading partner during the 19th century. Today most of Morocco’s external trade is with countries of the EU,with its two biggest trade partners being France and Spain. Trade with China is expanding rapidly.
UK exports of goods to Morocco in 2010 were £527 million, up 76% on 2009. They increased a further 4% in 2011 to £546 million, not a large increase but one that suggests 2010 was not a one-off surge. Morocco is now the UK’s leading export market in the Maghreb and in thetop six within the MENA region after the UAE, Saudi Arabia, Qatar, Israel and Egypt. Morocco has an investment promotion and protection agreement and a double taxation agreement with the UK for the protection of existing and future investments. The UK is one of the top six investors in Morocco. In most sectors, foreign companies can own 100% of a local subsidiary.
Morocco is a constitutional monarchy, with King Mohammed VI retaining much executive power. However, a new constitution approved in July 2011 increased the authority of the democratically elected parliament and the first elections under the new constitution took place on 25 November 2011. The moderate Islamist Development and Justice Party (PJD) won the most seats but not a majority. In January 2012 they formed a coalition government committed to prioritising social issues. They have also stressed their intention to improve governance, reform the justice system, and increase transparency – in order to boost the economy and attract foreign investors.
Over the last decade, Morocco has significantly liberalised its economy. By diversifying the economy, these reformshave heightened its resilience to external shocks and have allowed Morocco to come through the recent world economic downturn in reasonably good shape. GDP growth in 2011 was 4.3%, but is forecast to dip to 3.7% in 2012 before rebounding to 4.3% in 2013.
In October 2008 the European Union granted Morocco ‘advanced status’, the first country to be granted this and a reflection of the EU’s decision to strengthen trade and political ties.
Key Facts
Country Name:Morocco
Population:32.2 million
Area:446,550 km2
Capital city:Rabat (Casablanca is the main economic centre)
Official language:Arabic and Tamazight
French is widely spoken and most businesses are able to operate in French
Knowledge of English is growing, but is still limited
GDP per capita (ppp):$3,000
Source: FCO Economics Unit 2012
We’re excited about the future of our company in this new region and will continue to work with UK Trade & Investment (UKTI) as we develop the business further.” Alan PollittSellers Engineering
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Market Overview
Research by the Boston Consulting Group in 2010 identified 40 African companiesthat are growing rapidly and emerging as global competitors. Five of those companies are headquartered in Morocco.The research also identifies a group of fast-growing nations, including Morocco, which it describes as ‘African Lions’ who will ‘drive the continent’s growth, similar to the Asian Tigers’. Although Morocco has not attracted large numbers of British companies in the past, there are good business opportunities available in this expanding market with great potential.
As is noted in the overview section, the Moroccan economy is extremely diverse. The opportunities are similarly diverse with no single sector dominating. The following represent some sectors where British companies have been particularly successful and/or which play to accepted UK strengths. But they do not tell the whole story and opportunities exist literally across the board.
Infrastructure and Construction
The government’s social programme includes a major commitment to low cost housing and, at the other end of the scale, there are a number of prestigious tourism projects.
There are a wide range of urban and ruralinfrastructure projects underway includingthe following:
• New motorways, road and rail construction• Urban and national transport development programmes• Port and airport upgrading• Building of new towns and industrial areas
Whilst local standards are often based on those in France, the professionalism and expertise of British service and consultancy companies is highly regarded.
Defence and Security
This is one of Morocco’s top priorities and fastest growing sectors. The Moroccans themselves recognise a need for high-tech equipment to counter modern threats, as well as better security management. These offer many opportunities for UK companies, including in the following areas:
• Fire, safety and security • Border and access control• Surveillance and detection equipment• Imaging and police technology
Sales to the government and its agencies are likely to require official support from the Embassy and UK Trade & Investment.
There are also growing opportunities for working with the private sector, including some of the major infrastructure projects (e.g. Tangier Med port), where it is operationally necessary that security meets international standards.
Sectors of Opportunity
Education and Training
Education is one of the largest recipients of funds under Morocco’s budget. Italso attracts considerable funding fromdevelopment agencies (e.g. World Bank,EU, Islamic Development Bank and African Development Bank).
There is a particular emphasis on getting IT into classrooms under the GENIE programme (part of the Maroc Numeric 2013 project designed to upgrade IT skills). English language teaching is another area where demand is huge and there is scope for UK suppliers to work with local partners.
There is also much interest in UK vocational training expertise and accreditation of qualifications, where international recognition of UK qualifications is admired.
Renewable Energy
Under its National Energy Plan (NEP), Morocco has ambitious plans to develop renewable energy resources and improve energy efficiency. This is partly driven by increasing awareness of environmental issues, but also by the need to reduce the country’s high dependence on imported energy.
The objective is for 40% of electricity production to be from renewable sources by 2020, including 2,500 MW from wind and 2,000 MW from solar. Investment in solar alone is $9 billion and although investment in wind is also substantial, multiple funding sources make it difficult to give a single figure.
Morocco’s 3,500 km of coastline offers opportunities in wave and tidal power, although national plans for these are less well developed.
For smaller companies, there are opportunities available through small scale projects producing energy for remote communities from wind, solar and energy from waste.
Morocco’s investment in solar energy until 2020
$9 billion
Advanced Engineering
One of the sectors Morocco hasidentified as a priority for its own industrial development is aerospace. It has been successful in attracting companies and amongst those already present are Boeing, Safran, Labinal, United Technologies and Bombadier; the last two have invested over $200 million in the last 18 months alone.
This offers considerable scope for UK companies in supplying local manufacturing, supporting local companies and working with localcompanies in third markets. There is a generous support package for companies wishing to invest in this sector.
Aside from the aforementioned sectors, the Moroccan government has identified priority sectors for its own development into which it is putting considerable resources. This offers UK companies opportunities within the following areas:
• Automotive: Morocco is currently concentrated on relatively low tech areas such as wiring looms but has the objective of increasing value added
• Tourism: a new fund jointly owned by Morocco, Qatar, Kuwait and Abu Dhabi aims to invest €1.2 billion over 10 years
• Financial and professional services: the Casablanca Finance City (CFC) project aims to make Casablanca a hub for northern, western and central Africa. The CFC will sign a Memorandum of Understanding with the London promotional body, TheCityUK, in October 2012 To find out more about Morocco:
We’re delighted with the support we’ve had from UKTI in expanding our business overseas. UKTI does a good job helping UK companies to show the world what they can do. They also help you to address existing and new markets effectively.” Andy MearsDeltex Medical
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• Agriculture: represents 14-16% of GDP and employs around 40% of the population. There are niche opportunities around improving productivity and quality, including helping Moroccan producers expand exports
• Healthcare: a top priority for the new government
• Mining: the government is looking at incentives to encourage a move beyond reliance on phosphates
Overall, Morocco offers many opportunities to UK companies interested to expand in various sectors such as construction, infrastructure, education, energy, financial, tourism and many more.
