MOROCCO, INVESTMENT OPPORTUNITIES AND BUSINESS CLIMATE MOROCCAN INVESTMENT AND EXPORTS DEVELOPMENT AGENCY
MOROCCO, BUSINESS CLIMATE
MOROCCO OVERVIEW Capital Institutional System Area Rabat Democratic and social Constitutional Monarchy 710 850 km² N of inhabitants 34.5 millions Time Zone Languages GDP 2016 GDP per capita 2016 GMT (GMT+1 in summer) Arabic and Amazigh (official) French. Spanish. English 103 Billion USD 3 000 USD Growth 2016 +1.2% GDP Distribution (2016) Inflation Rate 2016 Primary Sector Secondary Sector Tertiary Sector 1.6% 14% 29% 57%
STRONG MACROECONOMIC DRIVERS Average 2012-2016 3.2% 1.5% 6.0% 9.4% 2016 1.2% 1.6% -17.5% 9.4% GDP Growth Inflation rate FDI inflow growth Unemployment rate Morocco has shown resilience to the crisis, posted growth driven by internal demand and public investment, and controlled inflation Sources : Commissariat au Plan. Office des Changes
STRONG MACROECONOMIC DRIVERS Average 2012-2016 3.2% 1.5% 9.4% Average 2012-2017 7.6% 2016 1.2% 1.6% 9.4% 2017 15.4% GDP Growth Inflation rate Unemployment rate FDI inflow growth Morocco has shown resilience to the crisis, posted growth driven by internal demand and public investment, and controlled inflation Sources : Commissariat au Plan. Office des Changes
A BUSINESS ENVIRONMENT CONDUCIVE TO INVESTMENT 2015 2016 2017 MOROCCO USA BRAZIL MEDIUM MEDIUM MEDIUM FRANCE PORTUGAL ROMANIA SPAIN TURKEY QATAR MEDIUM MEDIUM MEDIUM MEDIUM MEDIUM Medium MEDIUM MEDIUM MEDIUM Control Risks is a British consulting firm specialized in geopolitical and economic risks for businesses, and people since 1975, with operations in 36 countries. JORDAN MEDIUM MEDIUM MEDIUM SOUTH AFRICA MEDIUM MEDIUM MEDIUM TUNISIA MEDIUM MEDIUM MEDIUM ALG%ERIA HIGH HIGH HIGH EGYPT HIGH HIGH HIGH 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 7 1 No restrictions to capital for non-residents 2 convertibility regime for foreign investment operations (free transfer income, liquidation proceeds or disposal) 3 Plus de 50 conventions de investment non double imposition+pro tection de l investissemen (DTTs) t Several bilateral treaties (BITs) and bilateral double taxation treaties 3
A BUSINESS ENVIRONMENT CONDUCIVE TO INVESTMENT 5 th AFRICAN COUNTRY IN TERMS OF COMPETITIVENESS ACCORDING TO GLOBAL 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 FOR 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 8 28/11/2016
GEOSTRATEGIC LOCATION AT THE CROSSROADS OF THE CONTINENTS 7h 10d NEW YORK 2h 2d PARIS 3h 3d FRANkFURT 1h 1d MADRID 4h 5d ACCRA 2h 2d ROME 4h 4d 7h DOHA 22h 30d BEIJING 3h 4d CAIRO DAKAR 18h 25d SAO PAULO Flight duration Sea/land route Due to its political stability, solid infrastructure, and strategic location, Morocco is rapidly becoming a regional manufacturing and export base for international companies. Sources : Royal Air Maroc; COMANAV
EXCELLENT INFRASTRUCTURES Airports 16 international airoports Casablanca #1 hub between Europe and Africa Ports 2 shorelines: Mediterranean and Atlantic 38 ports among which 13 dedicated to foreign trade. Tramways Rabat and Casablanca 1 Billion EUR investment Highways Network multiplied par 12 in 15 years Connecting 70% of the population Trains 1 st high-speed train (Tangier- Casablanca) available in 2018 1.8 Billion EUR investment TANGIER MED 1 st Free Zone on the African Continent (Financial Times 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 16t h on the liner shipping connectivity index (# 1in Africa) Source : Autoroutes du Maroc, AMDI, UNCTAD report 2016
UNIQUE SET OF FREE TRADE AGREEMENTS GIVING ACCESS TO 1.3 BILLION CONSUMERS BILATERAL AGREEMENTS UAE JORDAN - TURKEY 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 Ag r e e m e n t under negotiations with Canada Ag r e e m e n t with United States of Americ a (2005) Ag r e e m e n t under negotiations with the Econom ic C o m m u n ity of W e s t African States ( E C O W AS & C E M AC) Association A g r e e m e n t with the European Union (1996) A d v a n c e d status granted in 2008 A g r e e m e n t with Turkey (2003) Agadir A g r e e m e n t (2004) United Arab Emirates A g r e e m e n t (2003) Arab League 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 13
AMBITIOUS SECTORAL STRATEGIES INDUSTRY : PERFORMANT CLUSTERS STRATEGY 2020 AGRICULTURE : GREEN MOROCCO PLAN 2020 TOURISM : 2020 VISION 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 MINING SECTOR 2025 To modernize the agricultural sector US$10 billion in additional GDP from agriculture US$15 billion in public and private investments 20 million tourists in 2020 200 000 new beds Tourism GDP: from US$6 billion in 2010 to US$17 billion in 2020 Turnover x3 1.5 Bn USD Investment x10 0.4 Bn USD Jobs x2 30 000 ENERGY : MOROCCAN SOLAR PLAN 2020 LIQUIFIED NATURAL GAS Renewable energy > 40% of national production by 2020 (52% in 2030) Capacity : 2 000 MW of solar power + 2 000 MW of wind power 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......through the development of competitive clusters 500 000 Jobs created in the industry, half of them through foreign investments JOB CREATION. Cornerstone of the IAP. Competitive clusters as a key to modernize and integrate each industry INDUSTRIAL CLUSTER STRATEGY +9pts 0 Raise the share of industry in the GDP To 23% Rebalance our trade accounts by promoting exports and substituting local sourcing to imports ADDED VALUE TRADE BALANCE. 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 SUPPORTIVE MEASURES TRADE BALANCE AND INCLUSIVE DEVELOPMENT
INDUSTRIAL ACCELERATION PLAN : SOME ALREADY SIGNED PERFORMANCE CONTRACTS Automotive Aeronautics Textil e Leather Chemicals Heavy Trucks Mechanical and Metalworking industries Building Material Pharmaceuticals Offshoring
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. 18 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. With its $800 millions of investments, Morocco is the 2 nd African investor in the continent after South Africa. King Mohamed VI meeting Malian President (up) and Senegalian President (down) Morocco is considered as a platform for foreign companies to project their activities in sub-saharan Africa due to: Deep knowledge of African markets Very frequent airline connections 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; 19
MOROCCAN COMPANIES, LARGE FOOTSTEP IN AFRICA ICT & Media Mining Banking Insurance Telecom Construction and Real Estate Pharmaceutical Air transport EAST AFRICA NORTH AFRICA WEST AFRICA CENTRAL AFRICA 20 20 SOUTHERN AFRICA
MOROCCAN INVESTMENT AND EXPORTS DEVELOPMENT AGENCY THANK YOU www.mcinet.gov.ma www.invest.gov.ma