Economy

Morocco is Attracting Foreign Companies

Morocco is Quickly Evolving and Becoming one of the Most Attractive Countries for Foreign Companies in Africa

June 10th, 2016
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The Kingdom of Morocco is transforming itself and is attracting more and more foreign investors in the process, particularly in the automobile and the aeronautics sectors, resulting in the creation of thousands of jobs. This increase is mostly due to the political stability of the country and of Rabat’s efforts to provide high-level infrastructures for foreign companies investing on its soil.

The two brand new factories of the French automobile company Renault, in Tangier and Casablanca, illustrate this rise in Morocco. The French company is producing one tenth of its global production (2,6 millions cars) in these two factories. This example also demonstrates the work of the Moroccan government to attract investors. Rabat provides Renault with land, excellent roads, energy, a train line to move the cars to Tangier’s harbor and one of the largest of the Mediterranean region, in addition to fiscal advantages.

The country has spent a lot of money on infrastructure in recent years and is now known for its modern road network, train lines, airports and harbors. Three other factors favourable to Morocco are its political stability, its geographical closeness to Europe and its cheap work force.

The best results of this rise can be seen in the region of Tangier where more than 700 foreign companies have settled generating more than 60,000 new jobs for the population. The harbor is continuously expanding in order to welcome even more foreign investors. Tangier has truly became the symbol of Morocco’s industrial strength. Its closeness to Spanish shores (14 km) has allowed it to become a major global player and the harbor is currently connected with 164 other harbors around the world.

So far Morocco’s strategy has met with success. 3.6 billion dollars have been invested in the country by foreign companies, most of it originating from France, but also from other countries such as China and India. Morocco wants to keep this growth going and is increasing incitative measures such as tax free zones to keep attracting investors. The Minister of Industry has set a target in the hope of creating 500 000 jobs by 2020.

References:

Cultural Diplomacy News
Pierre Even, CD News