THE FACE OF MODERN AFRICA
Morocco 2020/21 | DIPLOMACY | FOCUS
A major regional player on many fronts, Morocco has become an indispensable actor in Africa under King Mohammed VI, who has placed business expansion and diplomacy across Africa at the center of the government's development strategy.
AFTER LEAVING THE AFRICAN UNION (AU) IN 1984 over territorial disputes, Morocco expanded its external focus on Europe and ceded influence on pan-African affairs to other regional powers such as Nigeria, Egypt, and South Africa. But that, and much else, has been changing under the leadership of King Mohammed VI, who marked 20 years in power in 2019.
As one of the five-largest African economies, Morocco maderounds globally before the turn of the 21st century to sign FTAs with the EU in 1995 and then with four European Free Trade Association countries in 1997. And under King Mohammed VI, the country has continued to tick boxes in terms of trade liberalization, becoming the first African country to sign an FTA with the US in 2004 and then rejoining the AU in 2017. In addition to all that, Morocco's application to join the Economic Community of West African States (ECOWAS) was accepted in principle in 2017. King Mohammed VI has expanded the multilateral scope of his
diplomatic action and strengthened Morocco's involvement in the African continent. His vision has been supported by significant investments in African by Moroccan banks, which operate in more than 25 African countries, as well as investments by commodities, construction, energy, and telecom companies; a strategy to promote Casablanca as a regional transport and logistics hub; and a stronger partnership with Nigeria, another key regional player, on the basis of religious diplomacy and a mega gas pipeline project.
From the start, King Mohammed VI expressed his intentions to make Morocco a key player in shaping the Africa of the future. Soon after Morocco rejoined the AU, he said in an address, "Africa is the future. And the future starts today." Over the years, he has made well over 50 visits to African countries, signing more than 1,000 agreements across a broad range of sectors and filling a regional vacuum. And the government has backed up its plans with hard cash. Not only is Morocco the second-largest investor in Africa, its government has encouraged the private sector to invest in sub-Saharan Africa to an extent that 90% of the total FDI went to the region between 2010 and 2018, according to a report by the Financial Times. Ethiopia and Ivory Coast were the prime destinations for Moroccan investment. Morocco's role in regional and global affairs has grown in importance mainly because of strong policies on the domestic front. The government has steered significant resources toward key economic sectors and increased productivity. Sectors such as aerospace, electronics, automotive, and renewable energy have benefited from substantial public resources and a host of incentives to attract FDI. In doing so, Morocco's Doing Business environment has also improved, moving up nine places in the 2019 Doing Business ranking to 60th out of 190 countries, and up 129 in 2009, reflecting years of sustained reforms.
Under King Mohammed VI, the government has rolled out mega infrastructure projects such as the USD2.2-billion Concentrated
Solar Power tower, Africa's only high-speed rail network, and the continent's largest port complex, making Morocco a role model for African countries hungry for development projects. Notably, the new Tangier Med port is currently capable of handling 9 million TEUs per year, three times more than Port Said in Egypt, the next largest in Africa. Through investment in infrastructure, the government aims to leverage Morocco's geographic and cultural links with sub-Saharan Africa, the Middle East, and Europe to make it a regional business and export hub. Another sector that is worth writing home about is automotive, which has spearheaded the emergence of value-added exports over the past decade. Between 2009 and 2018, automobile shipments grew at an average of 39%, from USD224 million to USD3.9 billion. The sector as a whole is the largest export category and accounted for USD6.9 billion in 2018. Investments by major car brands such as Renault, Yazaki, Sews, and PSA Peugeot Citroen have transformed Morocco into the most dynamic automobile manufacturing market in the MENA region. According to the IMF, investment opportunities in Morocco will continue to be supported by solid underlying fundamentals. Real GDP growth will accelerate from an average of 3.1% between 2014 and 2018 to 3.8% until 2023, outpacing average growth rate of 2.7% in the MENA region over the same period. Undoubtedly, a stable and strong Morocco is key to Africa's economic growth, and as evident from the past, only through domestic success can Morocco pursue more initiatives across the continent and further intra-African integration.
Othman Cherif Alami, President, Atlas Voyages
Atlas Voyages has a threepronged plan for the success of Morocco's tourism industry: authentic experiences, sustainable tourism, and digitalization.
Habib El Fassi, Managing Director, Visit Morocco
From its outset, Visit Morocco has shown Morocco's authenticity to business clients from the world in a tailor-made manner.
Focus: Sustainable tourism
Championing sustainable development
Morocco's unique landscapes and cultural heritage have made tourism a fundamental pillar of the economy. The goal now is to preserve cultural identities, protect the environment, and uplift local communities so the country can successfully surf the wave of sustainable development.
Mehdi Zaanoun, General Manager, Four Seasons Hotel Casablanca
As one of the only hotels in Casablanca with a prime ocean-front location, Four Seasons Hotel is helping Casablanca capture a larger share of the leisure market.
Amr Kallini, General Manager, Mövenpick Hotel Casablanca
Located in close proximity to the business district, the old medina, and famous markets, Mövenpick Hotel Casablanca has something for everyone.
The unknown price of integration
Though persistent in its efforts to join the Economic Community of West African States since 2017, Morocco has yet to convince the rest of the bloc's 15 members that its membership will benefit them as much as it does Rabat.
Emma Wade-Smith, Her Majesty's Trade Commissioner for Africa, DIT
Though trade between the UK and Morocco over the last year stood at about GBP2.5 billion, there is still enormous potential for both countries to do more together given the ambitions of Morocco.
Educating the masses
Morocco's education sector has long been its Pandora's box.
Prof. Mostapha Bousmina, President, Euromed University of Fes
Apart from doing its utmost best to take care of its staff and students during COVID-19, Euromed University of Fes is strongly committed to several technological projects that are of help to wider society.
Esith
What started as a school to train students in line with the needs of the job market has become an institution ahead of its peers. With cutting-edge and transversal training, ESITH has branched out into new domains, such as two crisis units to help Morocco fight.
A free pass
With the AfCFTA, Africa could become the world's biggest, single free trade zone, creating trade diversification opportunities for Morocco and other African states.
Rabia El Alama, Managing Director, AmCham Morocco
AmCham Morocco seeks to be the advocate for American companies established in Morocco and for Morocco as the best gateway to Africa for American companies.
Leila Farah Mokaddem, Country Manager, African Development Bank
The African Development Bank is focused on more inclusive development in Morocco, including strengthening the education and health systems, improving access to basic social infrastructure, and opening up rural areas.
Mehdi Tazi, General Vice-President, CGEM
As a confederation of entrepreneurs, CGEM's goal is to save as many companies and as much employment as possible during the pandemic.
Hicham Boudraa, Acting General Manager, AMDIE
By supporting Moroccan companies to diversify, adapt, and open up new business lines, AMDIE strives to encourage growth opportunities for local businesses.
Mohamed Benchaâboun , Minister, Economy, Finance, and Administrative Reform
The ministry aims to enact reforms that will significantly improve the business environment, thereby promoting greater investment, employment, and inclusiveness.
Morocco's ambitious plan to boost its total renewable energy share to 42% by 2021 and 52% by 2030 will depend on its ability to exploit its promising solar and wind capacity.
Solar superpower
Morocco's ambitious renewable energy targets are being met with colossal megaprojects as the country is elevated to a leading position in Africa's clean energy drive.
Amina Benkhadra, General Director, ONHYM
ONHYM is engaged in an energy transition for Morocco where renewable energies will be positioned more in the mix.
Saïd Mouline, CEO, AMEE
By promoting energy-efficient solutions and raising awareness of efficient energy in rural areas, AMEE is pushing Morocco's energy transition forward.
Jaime Real de Asúa, President, ELECNOR
Elecnor plays a crucial role in developing energy sources, whether in terms of transmitting power, developing non-conventional renewable energy, or ensuring efficient energy use in installations.
Necessary and Sufficient
Morocco's Digital Development Agency has unveiled an ambitious plan to accelerate the country's digitalization efforts over the next five years. But what does it consist of, and how can it be achieved?
Amine Zarouk, President, APEBİ
APEBI's successful initiative, Hackcovid, resulted in dozens of technological solutions to help the country during the pandemic.
Abdeslam Alaoui Smaili, CEO, HPS Morocco
With a presence in more than eight countries in Africa and a portfolio of services that covers the entire value chain, HPS is revolutionizing the digital space one step at a time.
Saloua Karkri-Belkeziz, General Director, GFI
Already present in 15 African countries, GFI is further expanding its footprint on the continent through acquisitions, with the end goal of helping Africa use the latest technologies and innovations to get ahead of the curve.
Fatime Zohra Outaghani, CEO, PR Media
A Moroccan influence consultancy firm with a North African geographic footprint, PR Media's reach covers the entire continent and beyond
Noureddine Gnaou, General Manager, Soremar Holding
Soremar Holding has overcome several hurdles in the recent past to arrive at a stage where it is better prepared than ever before to go public and fulfill its vision for the African continent.
On the back of close cooperation with public authorities, Mosaïk Communication and Barid Media have helped Morocco reach the top-10 list of countries that have succeeded in achieving true digitalization.
IT players
Although present at different stages of the IT value chain, both Mobiblanc and GEMADEC are ready to play leading roles in Morocco's digital transformation journey.
Khaldoun Bouacida, Managing Director, BASF
BASF Morocco is active in numerous key segments, including agriculture, water treatment, chemicals, and automotive paints.
Signing a new contract
While the work of the 2014-2020 Industrial Acceleration Plan is far from over, it has driven the industrial sector's development and led to a new relationship between the state and the private sector.
Jalil Skali, General Director, DOLIDOL
DOLIDOL is keen to diversify its markets and businesses and invest in other projects to remain the market leader.
Fatima-Zohra Alaoui, General Manager, AMITH
Though Morocco is well recognized as a key player in the fast fashion supply chain, AMITH is advocating to further improve market access conditions for local exports.
Nourddine Rhalmi, CEO, Alstom Morocco
A leading global innovative player for a sustainable and smart mobility, Alstom has contributed to several emblematic railway projects in Morocco.
Breaking down the budget
Though estimates of total growth are likely to take a beating this year, Morocco's 2020 budget allotted additional funds for health and education, an expanded public sector, and sizably larger military spending.
Hicham Safir, CEO, Asma Invest
Asma Invest does not seek to become the largest real estate operator, but one of the best in terms of quality
Rachid Outariatte, President, APSB
In light of several structural changes to Morocco's capital markets, including greater professionalism and better standards on an international level, CDG Capital Bourse has adapted accordingly and emerged more successful.
Abdessamad Issami, CEO, Umnia Bank
With a new version of its application that meets 95% of its customers' needs, Umnia Bank has allowed its clients to bank safely from home without having to go to a branch.
Abdeslam Ababou, CEO, RMF
By focusing heavily on financing, RMF seeks to help create an environment that will give Moroccans the opportunity to develop their projects and skills for the good of society.
AGRICULTURE & FISHERIES
The Green Morocco Plan has proven highly successfully in terms of restructuring and modernizing the agricultural sector and providing economic opportunities to the youth and women.
Jean Christophe Queyroux, General Manager, Marjane Hypermarkets
Marjane's growth trajectory is intertwined with Morocco's urbanization. While the company mainly serves the upper and middle classes, its goal is to have a positive impact on all levels of society.
Riad Laissaoui, CEO, Retail Holding
Retail Holding's battle plan against COVID-19 entails several sanitary measures in line with international standards and working hand in hand with the local authorities.
Hassan Sentissi, President, FENIP
FENIP works tirelessly to raise awareness of the quality and diversity of local seafood and strengthen Morocco's competitive position in the international fishery market
Moulay Abdelkader Alaoui, Managing Director, Manafid Al Houboub
Manafid Al Houboub is working with the government on a strategy to streamline the agricultural sector and redeploy resources, with the end goal of benefiting low-income families.
The reit response
The introduction of the real estate investment trust (REIT) in Morocco's real estate landscape is a significant move in opening up Morocco's commercial real estate sector to institutional investors. Will it bring the transparency the market so desperately needs?
Focus: Megaprojects
A large portfolio of megaprojects focused on transport and energy production and transmission are ensuring a steady flow of investment opportunities and a positive outlook for Morocco's construction industry for years to come.<span></span>
Mohamed Ait Benzaiter, General Manager, Ménara Holding
As the largest construction holding in Morocco in terms of capacity, presence, and turnover, Ménara Holding's vision is to constantly innovate and reposition itself in the regional market with integrated solutions.
Issam El Jilani, General Manager, CMM
CMM's strategy moving forward is to maintain its growth rate in Morocco and explore other countries in Africa, a region that represents up to 20% of its total turnover.
Tarik El Harraqui, General Manager, CBRE Morocco
CBRE Morocco's current strategy is to consolidate its position and strengthen Casablanca's role as the hub of North and West Africa.
Connecting a new kind of Kingdom
Morocco's Al Boraq high-speed train, which opened in November 2018 and already connects Tangier to Casablanca, sets a special precedent for the African continent.
Mohamed Ifrah, General Director, DHL Express Morocco
As the first international express transport company to enter Morocco, DHL has a tried-and-tested recipe for success: take care of its employees, focus on great quality, and listen to the needs of customers.
Antoine de Mirbeck, Managing Partner, Ipsen Logistics
IPSEN Logistics' strategy for a post-COVID-19 world is to focus on areas where there is less competition and where it can provide the most added value.
A booming tourism industry has made Morocco a battleground for airlines. In such a scenario, Air Algérie and TUI fly Morocco have done an incredible job finding the right strategy to tap into their niche markets.
A friend indeed
Parliament must focus on building a country that is committed to progress and development and that responds to the concerns and aspirations of all its citizens.