Reasons to invest 

1.Cost Competitiveness

Only 14km south of Europe, Morocco is a competitive platform for export :

• Low Wages: The average wage is 327$/month.
• Competitive costs to export : 595 USD/container/
• Low Tax rates : Taxes paid by companies represent only 49,3% of their profit

2.Strong and Stable Macroeconomic Performances

Preserving macroeconomic stability is a major concern for Moroccan governments. Several actions and structural reforms have been undertaken to put the country on the path of strong and sustainable growth:

• Access to new growth levels: A continuously growing economy with an average growth rate of 4% over the period 2004-2015.
• Controlled inflation Inflation is maintained below 2% despite the rising prices of oil and raw materials.
• Growth driven by domestic demand and public investment

3.Free Trade Access to One Billion Consumers

As part of an overall market-opening strategy and liberalization , Morocco proceeded during the last decade to the establishment of a legal framework to boost its trade ties with more than 55 countries. 

4.World Class Infrastructure

Morocco, 1st in Africa in terms of  infrastructure quality according to Global competitivness Index-WEF 2016-2017 (Mauritius is considered as Dom-Tom)

For over a decade, Morocco launched large-scale projects aimed at elevating its infrastructure to international standards:

• Tanger-Med Port
• The Highway Network
• 17 international airports

Telecommunications infrastructure meeting international standards.

5.Qualified Labor Force

In Morocco, human resources have all the ingredients to become the pivots of a competitive investment and value creator: education level, cultural openness, language skills and new technologies, commitment to entrepreneurship, adaptation capacity to change and competitive labor costs.

6.Sectorial Plans

Morocco launched numerous strategic sectorial plans that ensure strong and sustainable economic growth. This reform momentum is marked by an innovative contracting approach and public private partnership advocating greater and coordinated participation of the private sector in the development of sectoral strategies and policies along with the funding of projects allowing to refocus the State’s role on its regulatory powers.

These strategies are part of a process to speed the development of strategic sectors like agriculture, fishery, mining, renewable energy, logistics and promising sectors such as automotive, aerospace and services with high added value.

7.Constantly improving business Climate

To promote the investment act, a particular attention is given to improving the business climate. A set of mechanisms to increase competition and transparency was put in place:

• Simplification of administrative procedures for businesses
• Strengthening the business law framework (law on competition and free pricing, law on economic interest groups, law on industrial and intellectual property …)
• Improving regulatory transparency
• Development and modernization of financial markets
• Creation of the Business Environment National Committee
• Creation of the Central Authority on the Prevention of Corruption
• Creation of the Moroccan Office for Intellectual and Commercial Property
• Promotion of the Charter on Corporate Social Responsibility

Steps to create a company:

http://www.invest.gov.ma/?lang=&Id=85

8.Attractive incentives for your projects

In addition to the tax exemptions granted under the common law, Moroccan law provides specific financial, tax and customs advantages to investors, as part of agreements or investment contracts to be concluded with the State, provided that they meet the required criteria. 

This concerns:

• The contribution of the state to certain investment expenses: Investment Promotion Fund;
• The contribution of the state to certain expenses for the promotion of investment in specific industrial sectors and the development of modern technologies: the Hassan II Fund for Economic and Social Development;
• Exemption from customs duties under Article 7.I of the Finance Act No. 12/98;
• Exemption from import VAT under Section 123-22 °-b of the General Tax Code.

More info: http://www.invest.gov.ma/?lang=en&Id=20 

9.Investor Protection

International conventions relating to the guarantee and protection of investments

As part of foreign investment promotion efforts, Morocco has ratified international conventions relating to the guarantee and protection of investment. These include agreements on the establishment of :

• The International Center for Settlement of Investment Disputes “ICSID”
• The Multilateral Investment Guarantee Agency “MIGA”
• The Inter-Arab Organization for Investment Guarantee Corporation

Investment Opportunities

1.INDUSTRIAL 

The Industrial acceleration plan is a new approach based on the implementation of efficient ecosystems aiming at the integration of the value chains and the consolidation of the local relations between big firms and SMEs .

The strategy, that will extend over the 2014-2020 period, is expected to generate half a million jobs in the sector and substantially increase the share of industry in GDP from the current 14% to 23 %.

Industries included:

• Automotive
• Aeronautics
• Offshoring
• Electronics
• Textile and leather
• Food Industry

2.Solar Energy

As part of its strategy towards energy use, Morocco gives priority to developing renewable energy and sustainable development. With abundant solar resources (a potential of 2 600 kWh/m²/year) and a strategic position at the heart of an energy hub (Connexion with Spanish Network through two electric lines 400kV/700 MW), Morocco offers a wide range of investment opportunities in the sector of thermal and photovoltaic solar energy, including the launch of the following structuring programs:

• The Moroccan Project of Solar Energy:his integrated development project aims to set up in 2020 a capacity of electricity production driven from solar energy with a total capacity of 2000 MW in five major sites: Ouarzazate, Ain Bni Mathar, Foum Al Oued, Boujdour and Sebkhat Tah.
• Development Program of the Moroccan market for solar water heaters (PROMASOL): This program involves the installation of 440,000 m2 of thermal solar sensors in 2012 and 1.7 million m2 in 2020

3.Tourism

Morocco is a tourist destination that has many strengths and clear potential that allowed it to become a highly popular tourist destination. With varied and contrasting landscapes (3500 km of coastline, mountains, deserts …), a rich cultural heritage (imperial cities, old towns, food and crafts), Morocco is a unique and diverse touristic experience only 2h30 flight from major European cities .

4.Agriculture

The agricultural sector contributes with 19% to the national GDP, divided between agriculture (15%) and agro-industry (4%). This sector employs over 4 million people including about 100,000 in agro-industry.

The new agricultural strategy, Green Morocco Plan, established by the Ministry of Agriculture and Fishing, aims to consolidate the success achieved and to meet new challenges facing Morocco’s competitiveness and opening of markets.

5.Fishing Industry

The fishing sector in Morocco has developed an integrated, ambitious and comprehensive development in 2020 called “Halieutis. It aims at upgrading and modernization of various sectors of the fishing industry and improve its competitiveness and performance.

6.Logistics

The National Strategy for the Development of Logistical Competitiveness, which is the subject-matter of a 2010-2015 Compact, provides for the reduction of logistical costs by as much as 20-15% of GDP.

7.ICT

Information Communication and Technology (ICT) usage is essential for the emergence of the knowledge society and can actively contribute to human development, improvement of social cohesion and national economy growth. The challenge for Morocco in the ICT sector for years to come is not only to sustain the progress already made, but also to allow the insertion of Morocco in the global knowledge economy, through amplified and widely distributed integration of ICT across all actors of society: government, governments, businesses and citizens.

8.Retail

Retail contributes to 11% of GDP and employs about 1.2 million people or 12.8% of the labor force in Morocco. Retail has experienced over the past decade, the emergence of new patterns of trade and especially franchise networks and retail.

Companies investing in Morooco

Moroccan Investment and Export Development Agency

Phone :+ 212 537 22 64 00

info@invest.gov.ma