Industry: Extreme streamlining of procedures to Secure Investment

«No The Head of Government, Aziz Akhannouch, eight ministers (Ryad Mezzour, Abdellatif Miraoui, Leila Benali, Mohamed Abdeljalil, Nizar Baraka, Mohcine Jazouli, Fatim-Zahra Ammor, and Younes Sekkouri), along with several regional presidents, made their mark at the second edition of National Industry Day. This edition was held jointly by the General Confederation of Moroccan Enterprises (CGEM) and the Ministry of Industry and Trade.

Under the theme «Industry, a Catalyst for Transforming Territories in Light of the Kingdom’s Transformative Projects,» the National Industry Day  brought together a large number of economic and institutional operators. The aim is to strengthen the platform for discussions on the issues of sovereignty and the transformation of national industry within the framework of the new national strategic orientation. The royal message addressed during the first edition set a new course: the national industry must undergo a transformation aimed at upgrading its quality, with the goal of integrating new global value chains.

Eliminating Administrative Barriers

“To secure industrial investment, we must eliminate administrative and regulatory barriers.” The message is clear and direct. Ahmed Réda Chami, president of the Economic, Social, and Environmental Council (CESE), did not mince words. “We need to eliminate permits and retain them only in vital sectors. We should replace long procedures with specifications and ex-post verifications.” Chami’s remarks were well received by the national industrial elite.

Earlier, the Head of Government presented the progress made in the sector. The figures are striking: the value of industrial exports has multiplied by six, increasing from 61 billion dirhams  (USD 6 billion) in 1999 to 376 billion dirhams (USD 37 billion) in 2023. Additionally, Morocco has increased the number of its industrial enterprises, which rose from 4,500 in 1999 to around 13,000 in 2023, along with the number of jobs created (from 477,000 to 1 million today). “Our country has also managed, within this momentanément, to expand its economic openness through free trade agreements that have given it the opportunity to access over 2.3 billion consumers,” said the Head of Government, highlighting the creation of 22 new industrial acceleration zones (ZAI’s) in eight regions and the payment to businesses of over 20 billion dirhams (USD 2 billion)  in VAT arrears and others… For the current year, the latest sector indicators appear very encouraging, said Aziz Akhennouch. Thus, during the first half of 2024, the industrial sector (including crafts) created 92,000 jobs, surpassing that of the services sector.

Further Development of Local Solutions

Ryad Mezzour, Minister of Industry and Trade, noted that the industry has generated 816 billion dirhams in exports over the past 25 years. The minister also provided details on the sector’s automotive performance: Morocco has become the leading car producer in Africa, with 148 billion dirhams  (USD 15 billion) in exports and a 69% integration rate in 2023. “In reality, the Kingdom currently produces a car every minute and boasts competitiveness comparable to that of China,” the minister proudly stated. In the aeronautics sector, the 150 operators established in Morocco exported 23 billion dirhams in 2023. “The integration rate of the sector exceeds 42%,” insisted the minister. Reflecting on the achievements of the past 25 years, Mezzour highlighted that the Moroccan industry generates 2 billion dirhams in daily turnover and 1 billion dirhams in daily export turnover.

What Business Leaders Think

“WE overall display an integration rate of 69%, on par with Germany and Japan,” said Chakib Alj, president of the Moroccan employers association (CGEM). The business leader noted that in 2023, the industry recorded a notable increase in its exports, reaching 429 billion dirhams, compared to 329 billion in 2021. “A high-performing and export-oriented industry does not only help rebalance our trade balance; it also strengthens the stability and resilience of our currency,” declared Alj. He further expressed hope that industrial integration will extend to various sectors. “We must adopt the same logic for textiles and agribusiness, where countries like Turkey and China manage to achieve rates exceeding 70%.” Alj stressed the need to develop more local solutions to secure supply chains. “The establishment of a national strategy for enhancing Moroccan production, particularly through a ‘Made in Morocco’ label, constitutes an important lever,” he added saying.

Badra Berrissoule &
El hadji Mamadou GUEYE