MOROCCO INVESTMENT OPPORTUNITIES AND BUSINESS CLIMATE MOROCCAN INVESTMENT
MOROCCO, INVESTMENT OPPORTUNITIES AND BUSINESS CLIMATE MOROCCAN INVESTMENT AND EXPORTS DEVELOPMENT AGENCY
MOROCCO, BUSINESS CLIMATE
MOROCCO OVERVIEW Capital Rabat Democratic and social Constitutional Monarchy Institutional System Area 710 850 km² N° of inhabitants 34. 5 millions Time Zone GMT (GMT+1 in summer) Languages Arabic and Amazigh (official) French. Spanish. English GDP 2017 GDP per capita 2017 110 Billion USD 3 125* USD Growth 2017 +4. 1% GDP Distribution (2017) Primary Sector Secondary Sector Tertiary Sector Inflation Rate 2017 * Temporary data Sources: Office des Changes, HCP 0. 7% 14% 29. 5% 56. 5%
STRONG MACROECONOMIC DRIVERS Average 2012 -2016 2017 3. 2% 1. 5% 9. 4% 4. 1% 0. 7% 10. 2% GDP Growth Inflation rate Unemployment rate Average 2012 -2017 7. 6% 2017 12% FDI inflow growth Morocco has shown resilience to the crisis, posted growth driven by internal demand public investment, and controlled inflation Sources : Commissariat au Plan. Office des Changes, Ministery of f. Fnance
A BUSINESS ENVIRONMENT CONDUCIVE TO INVESTMENT 2015 2016 2017 LOW LOW USA LOW LOW BRAZIL MEDIUM FRANCE LOW LOW PORTUGAL LOW LOW ROMANIA MEDIUM LOW MEDIUM SPAIN MEDIUM LOW Medium TURKEY MEDIUM QATAR LOW LOW MOROCCO JORDAN MEDIUM SOUTH AFRICA MEDIUM TUNISIA MEDIUM ALG% ERIA HIGH EGYPT HIGH Control Risks is a British consulting firm specialized in geopolitical and economic risks for businesses, and people since 1975, with operations in 36 countries. Stable political environment o 'ver the last 10 years MOROCCO RANKED "SAFE DESTINATION" BY THE US STATE DEPARTMENT 2016
A BUSINESS ENVIRONMENT CONDUCIVE TO INVESTMENT 1 No restrictions to capital for non-residents 6 2 convertibility regime foreign investment operations (free transfer income, liquidation proceeds or disposal) 3 Plus de 50 Several bilateral conventions de investment non double treaties (BITs) and imposition+pro bilateral double tection de taxation treaties (DTTs) l’investissemen t 3
A BUSINESS ENVIRONMENT CONDUCIVE TO INVESTMENT 5 th AFRICAN COUNTRY IN TERMS OF COMPETITIVENESS ACCORDING TOG LOBAL COMPETITIVENESS INDEX - WEF 2017 -2018 IN 8 YEARS, MOROCCO HAS WON 59 RANKS IN THE RANKING DOING BUSINESS (128 TH POSITION IN 2010, 69 TH IN 2018 ) 3 RD AT THE AFRICAN LEVEL 1 ST MOST ATTRACTIVE AFRICAN COUNTRY FOREIGN INVESTORS - ERNST & YOUNG AFRICA ATTRACTIVENESS SURVEY 2017 CASABLANCA RANKED 15 TH CITY OF THE FUTURE FOR 2016/17 IN THE AEROSPACE SECTOR AND OVERALL FDI PROJECT NUMBERS IN TERMS OF INVESTMENT FDI INTELLIGENCE 7 28/11/2016
GEOSTRATEGIC LOCATION AT THE CROSSROADS OF THE CONTINENTS 7 h 10 d NEW YORK 2 h 3 h 2 d 3 d FRANk. FURT PARIS 2 h 1 h 1 d MADRID 2 d 7 h ROME DOHA 22 h 4 h 3 h 30 d 5 d 4 h ACCRA 4 d CAIRO BEIJING 4 d DAKAR 18 h 25 d SAO PAULO Flight duration Sea/land route Sources : Royal Air Maroc; COMANAV Due to its political stability, solid infrastructure, and strategic location, Morocco is rapidly becoming a regional manufacturing and export base for international companies.
EXCELLENT INFRASTRUCTURES Airports TANGIER MED 16 international airoports Casablanca #1 hub between Europe and Africa 1 st Free Zone on the African Continent (Financial Times 2016) Highways Network multiplied par 12 in 15 years Connecting 70% of the population Ports 2 shorelines: Mediterranean and Atlantic 38 ports among which 13 dedicated to foreign trade. Trains 1 st high-speed train (Tangier- Casablanca) available in 2018 1. 8 Billion EUR investment Tramways Rabat and Casablanca 1 Billion EUR investment Source : Autoroutes du Maroc, AMDI, UNCTAD report 2016 5 th largest port of the Mediterranean sea. Ideal platform to serve Mediterranean and Western African countries. Connections to 171 international ports in 67 countries. Capacity of 9 million containers in 2017. Target : Top 15 worldwide Index of liner shipping connectivity in Morocco : ranks 16 th on the liner shipping connectivity index (# 1 in Africa)
UNIQUE SET OF FREE TRADE AGREEMENTS GIVING ACCESS TO 1. 3 BILLION CONSUMERS BILATERAL AGREEMENTS A g r e e m e n t u n d e r negotiations with C a n a d a UAE – JORDAN - TURKEY Association A g r e e m e n t w i t h e E u r o p e a n U n i o n (1996) A d v a n c e d status granted in 2 0 0 8 MULTILATERAL AGREEMENTS MEDITERRANEAN ARAB COUNTRIES (AGADIR DECLARATION) TRADE FACILITATION AND DEVELOPMENT AGREEMENT BETWEEN ARAB COUNTRIES ECONOMIC GROUPS FTA MOROCCO – STATES OF THE EUROPEAN ASSOCIATION OF FREE TRADE ASSOCIATION AGREEMENT WITH THE EU A g r e e m e n t with Turkey (2003) A g r e e m e n t with U n i t e d States of A m e r i c a (2005) A g r e e m e n t u n d e r negotiations with t h e E c o n o m i c C o m m u n i t y of W e s t African States ( E C O W A S & C E M A C ) Agadir A g r e e m e n t (2004) U n i t e d A r a b Emirates A g r e e m e n t (2003) A r a b L e a g u e A g r e e m e n t ( 1998) In order to foster investment in Morocco, Moroccan Government implemented key administrative, fiscal, real estate incentives along with several trade agreements
MOROCCO : KEY SECTORS AND INVESTMENT OPPORTUNITIES Département Etudes et Veille -10082017
PRIVATE INVESTMENT: AN IMPORTANT ROLE IN THE SECTORAL STRATEGIES § Strategies with quantitative targets and adequate means § Private sector involvement in the development § Private Investment Opportunities § Annual assessments made before the Head of State 12
AMBITIOUS SECTORAL STRATEGIES INDUSTRY : PERFORMANT CLUSTERS STRATEGY 2020 • Industrial GDP to reach 23% of global GDP • Creation of 500 000 jobs • Creation of Industrial Development • Fund: $2. 5 Bn • Allocation of 1 000 hectars of land for rent TOURISM : 2020 VISION • 20 million tourists in 2020 • 200 000 new beds • Tourism GDP: from US$6 billion in 2010 to US$17 billion in 2020 ENERGY : MOROCCAN SOLAR PLAN 2020 • Renewable energy > 40% of national production by 2020 (52% in 2030) • Capacity : 2 000 MW of solar power + 2 000 MW of wind power AGRICULTURE : GREEN MOROCCO PLAN 2020 • To modernize the agricultural sector • US$10 billion in additional GDP from agriculture • US$15 billion in public and private investments MINING SECTOR 2025 • Turnover x 3 1. 5 Bn USD • Investment x 10 0. 4 Bn USD • Jobs x 2 30 000 LIQUIFIED NATURAL GAS • 4, 6 MM USD investment • Gas terminal • 400 km gazoduc • Combined cycle power plant
INDUSTRIAL ACCELERATION PLAN 2014 -2020 : CREATE THE MOMENTUM FOR THE INDUSTRIALIZATION OF MOROCCO Succeed in boosting our industrialization. . . 500 000 Jobs created in the industry, half of them through foreign investments +9 pts 0 Raise the share of industry in the GDP To 23% Rebalance our trade accounts by promoting exports and substituting local sourcing to imports . . . through the development of competitive clusters JOB CREATION ADDED VALUE TRADE BALANCE . Cornerstone of the IAP. Competitive clusters as a key to modernize and integrate each industry . Industrial fund : 20 Billion MAD. Land : 1000 hectars. Dedicated financial products. Coordinated training programs. OVsets and imports substitution Cross-functional aims of the IAP : . Rebalance trade. Include informal economy. Increase vertical integration MNC/SMB INDUSTRIAL CLUSTER STRATEGY SUPPORTIVE MEASURES TRADE BALANCE AND INCLUSIVE DEVELOPMENT
INDUSTRIAL ACCELERATION PLAN : SOME ALREADY SIGNED PERFORMANCE CONTRACTS Automobile leather Aeronautic Phosphate industry Construction materials Naval Industry Chemichals Plastics processing Naval Textile Heavy trucks industry Offshoring Pharmaceutical industry Mechanical and steel industries Agribusiness
MOROCCO, STRENGTHENING THE SOUTH-SOUTH PARTNERSHIP
AFRICAN ECONOMIC POTENTIALITIES • By 2050, Africa's economy would be close to 10 times bigger than it is today. • Six of the world’s ten fastest-growing economies in the world over the last decade were in Africa. It is expected to be seven by 2020. • There is a rise of a consumer society, which increases demand, boosts local production and amplifies middle class. 17 The true size of Africa embraces China, the US, India, Eastern Europe and the most important Western European countries * Bloomberg
MOROCCAN GEOSTRATEGIC VISION TOWARDS AFRICA • Morocco, under the vision of its King, is keen to strengthen its position as an African leader. This is marked by the various visits of His Majesty to different African countries. • Morocco is considered as a platform foreign companies to project their activities in sub-Saharan Africa due to: King Mohamed VI meeting Malian President (up) and Senegalian President (down) 18 ü Deep knowledge of African markets ü Very frequent airline connections ü A strong Moroccan banking sector present in Africa • Cooperation between Morocco and the other African countries is expected to strength, in order to reach several sectors where Morocco can provide its support and experience;
MOROCCAN COMPANIES, LARGE FOOTSTEP IN AFRICA Banking Mining ICT & Media Insurance Telecom Construction and Real Estate Pharmaceutical Air transport EAST AFRICA NORTH AFRICA WEST AFRICA CENTRAL AFRICA SOUTHERN AFRICA 19 19
MOROCCAN INVESTMENT AND EXPORTS DEVELOPMENT AGENCY THANK YOU www. mcinet. gov. ma www. amdie. gov. ma
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