Morocco: Competitive Advantage for Emerging Industries

Morocco (Casablanca) - His Majesty King Mohammed VI chaired the opening ceremony of the first Moroccan National Industry Conference.

The conference is organized by Moroccan Ministry of Industry, Trade and New Technologies in partnership with the Moroccan Companies Confederation (CGEM) and Moroccan Banks Association (GPBM).

On this occasion, a video presentation was shown on progress made in the projects carried out as part of the 2009-2015 National Agreement for Emerging Industries, Le Pacte National pour l’Emergence Industrielle (PNEI).

Morocco is targeting 6 sectors where the country has a competitive advantage:
- Offshoring: Positioning of leadership in the Francophone nearshoring (10-12 key industries) around specially dedicated areas
Impact : +70,000 jobs

- Automotive: Creation of a stable industrial base over the long term around a network of suppliers and mega-sites of automobile manufacturing
Development of special areas dedicated to the highest International standards (Logistics, Real Estate, Services)
Impact : +73 000 jobd

- Aerospace: Enlargement of targeted sectors and move upmarket: outsourcing and industrialization (migration to levels 2 and 3)
Development of an aviation hub with an area of 200 hectares near Mohamed V airport
Impact: +15,000 jobs

- Electronics: Focus on specialty electronics and integrated, particularly in synergy with the automobile and aeronautics industries
Integration in dedicated areas
Impact : +9,000 jobs

- Textile: Repositioning on the fast-fashion models from the North-South cooperation to be more balanced (co-sourcing)
Improving integration
Impact : +32,000 jobs

- Agro-industry: Development of 8-10 sectors with high potential (eg olive oil) around Integrated Projects (Agro Agrotech or dedicated teams)
Impact : +24,000 emplois


Moroccan Minister of Industry, Trade and New Technologies, Mr Ahmed Reda Chami, presented the results of the implementation of the agreement in its first year as following:

Off-shoring Achievements 2009
- Accelerated the pace of setting up local ready-dedicated Off shoring sectors.
40 enterprises have already been installed at Casanearshore and 14 others in Rabat Technopolis 
- 17 French companies specializing in information systems (SSII), settled in Morocco, representing approximately 47% of the turnover of the fifty most important French company's.
- Encouragement of a number of large companies in the field of BPO to settle in Morocco: Installation of Teleperformance and Genpact, which are Call Centres leading to very strong and VA, in addition to AXA, bringing the number of employees in 2009 to 380 people, forecasting that it will hire 800 people by the end of 2010.
- Signature of Memoranda of Understanding between the State and 4 international companies: Genpact, EDS-CDG IT, BULL, TELEPERFORMANCE
Creation of around 6,000 jobs in 2009 (a growth rate of 17% compared to 2008).
Prepared a marketing plan and adapted to the French and Spanish markets
Promotion Offer Morocco in several events: Event organized by Eductour Casanearshore, Steria Medshore, the days of the industry ...

Automotive Industry Achievements 2009
- Signature of investment agreements with a number of companies
Realization of certain investment projects: FAURECIA, TREVES, DELPHI, SUMITOMO, who have installed themselves in 5 sites in Morocco. SUMITOMO has already created 12,000 jobs
- Other investment opportunities are currently under study ;
Conducted a series of meetings in Morocco, France and Spain, with many French and Spanish federations specialising in manufacturing auto parts.
- Culmination of discussions between Egypt and Morocco, to allow access of 6,000 Logan cars in the Egyptian market in 2009 under the Agadir Agreement;
- Assistance to manufacturers of automotive parts R2 and R3 premises to enable them to supply parts to manufacturers of R1 and Renault this project to increase local added value.
- Initial discussions with Group PSA to supply its site in Vigo from Morocco
- Launch an audit of competitiveness from a panel of Moroccan firms by PSA
- Advanced work in improving the logistics process between Tangier and Vigo (air and shipping lines, customs aspect ...)
- Signing a partnership agreement between the French Federation and its Moroccan counterpart (GPLC).
- Work to accompany the introduction of Euro and Euro 4
- Tracking the evolution of society "SOMACA" to  achieve its operational production capacity estimated at 90,000 cars per year
- Tracking economical vehicles, particularly in terms of local integration
- Presentation of Moroccan offers at several events: Tec'Auto Fair in Casablanca, Midest-Fair Industrial Subcontracting in Paris, Equipauto Salon in Paris. ...

Aerospace Industry Achievements 2009
- Conducted a series of international meetings with business operators
- Participated in the exhibition "Le Bourget", and met representatives of aerospace companies to convince them to choose Morocco for their future investments.
- Signing of a series of investment agreements with French companies ZODIAC, ATCH and MS COMPOSITES, which will create over 380 jobs
- Identification of the positioning of Morocco and the channels of promotion done.

Electronics Industry Achievements 2009
- Organised meetings in Morocco with key players, including French companies Thales and Alsthom that have concluded in agreements to subcontract with several Moroccan companies
- Achieved support of the American Group LEAR by the realization of its investment project in the field of electronics in Rabat Technopolis.
- Preparation of a marketing plan tailored to the French market. The identification of the positioning of Morocco and the promotion channels have been made.

President of the General Confederation of Moroccan Enterprises (CGEM), Mohamed Horani, highlighted steps undertaken by CGEM (employers union) as part of the PNEI.  

For his part, head of the Professional Grouping of Moroccan Banks (GPBM) reaffirmed the full backing and commitment of banking institutions in favor of the implementation of the PNEI.
During the ceremony, four partnership agreements were signed between the government and several operators in the economic, industrial and financial sectors.

On this occasion, the Monarch decorated several Moroccan and foreign personalities who made outstanding achievements in the economic, industrial and financial sectors.

PNEI attractive incentive framework:
- A massive relief of labour taxes / tax burden related to Income Tax not exceeding 20% per person
- Exemption for a period of 24 to 36 months of Tax Revenue, Tax training and employer and employee contributions (under the Contract plan)
- Exemption from Corporation Tax over a period of 5 years and 17.5 above, for companies that export products or services

PNEI Vision:
- Focus on sectors with competitive advantages
- Improving the competitiveness of enterprises
- Strengthening implementation capacity

PNEI Objectives for 2015:
- Creation of 220,000 direct jobs, reduction of urban unemployment
- Creating wealth through an increase in GDP of 50 billion Dhs
- Generate an additional volume of exports, 95 billion Dhs
- Generate additional private investment of over 50 Billion Dhs

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