Report
November-December issue l 2021
Morocco Becomes Africa’s Auto
Manufacturing Hub
M
orocco’s Automotive industry is relatively growing each year with car sales exceeding 160,000 units in 2021, and creating over 220,000 direct jobs. Morocco is Africa’s first passenger car manufacturer. With $7 billion (MAD 65.1 billion) exports made in the car industry at the end of 2018, Morocco has surpassed South Africa as the biggest exporter of passenger cars on the continent. As of 2021, new passenger vehicles (PCs) recorded an increase of +10.77% with 115,611 units sold, transforming Morocco as a leading automotive manufacturing hub in Africa. Despite the consequences of the COVID-19 crisis, the industry has gradually recovered this year, selling around 400,000 cars to Europe, with France, Spain, Germany, and Italy among its top exporters. The Financial Times reported that Marc Nassif, managing director of Renault in Morocco, the biggest manufacturer in the country, said that local suppliers provide the French auto company with automotive components for its vehicles, such as seats and axles. He estimated that local components constitute 60% of the final product and predicts the number to rise to 65% in the near future. As for the country’s infrastructure, the Moroccan government allocated $7.76
billion (MAD 69 billion) in 2015 towards developing infrastructure in Morocco’s southern landscape, including roads, universities, airports, hospitals, and more. The recent Tangier-Casablanca high speed rail project, a $4 billion (MAD 36 billion) investment that has rendered Morocco’s infrastructure more modern and efficient in recent years, is also a major development for the country’s infrastructure industry. With the government incentives and foreign investments’ rapid implementation in Morocco, financial experts anticipate the automotive sector to grow by $14 billion (MAD 126 billion) within the next five years. Morocco’s automotive sector in Expo 2020 Dubai The General Confederation of Moroccan Entreprises (CGEM) and the Moroccan Agency for the Development of Investments and Exports (AMDIE) organized “Morocco Week” in Dubai as part of the Expo 2020 Dubai, spanning from October 10 to 16. There was a large attendance of Moroccan public and private operators aiming to promote Morocco for foreign investors through highlighting the kingdom’s potential as a global investment hub. CGEM’s President, Chakib Alj, said Morocco’s political stability and geographical location played a key role in attracting foreign investment, making the North
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By choosing Morocco, an investor chooses growth, innovation, visibility, stability
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African country the second most attractive investment destination, behind Egypt and ahead of South Africa, Kenya, and Rwanda. With more than 60 free trade agreements signed with Europe, the US, Turkey, the United Arab Emirates and elsewhere, Alj recalled Morocco’s competitiveness and massive efforts in infrastructure and automotive to become an essential gateway to Africa. “All these achievements have made Morocco a prosperous and safe environment for business,” he said. During the event, Morocco introduced foreign investors to the main features of the New Development Model (NDM). The North African country will soon implement the framework of the NDM to expand its economic growth and investment opportunities in various sectors, especially in renewable energies. “By choosing Morocco, an investor chooses growth, innovation, visibility, stability,” Alj said. “[The investor] also chooses to access a growing continent with a promising future,” he added. During “Morocco Week,” organizers held a seminar to highlight Morocco’s industrial sector. Both Moroccan and foreign participants stated that Morocco’ industrial sector “has achieved a remarkable success that exceeded all expectations,” making Morocco a prominent destination for its national industrial fabric. The event will also host B2B meetings and conferences centered around industry, logistics, finance, renewable energies, and innovation.
Africa Automotive News l 2021
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