MOROCCO’S MOMENT: SUPPLY CHAINS REIMAGINED
I
n 2003, during the SARS epidemic, China accounted for only 4% of global output, but with increased globalisa on, dependence on China has also increased, bringing that figure up to 16% today. Post COVID19, will this reliance wane, and if so, where to look to now? The pandemic has uncovered many things, and the over-reliance of interna onal companies and governments on China is at the forefront. From cars to medicines, global corporaons with current or intended supply chain opera ons in the Asia Pacific are rethinking their routes, and with its reliable infrastructure, compe ve wages and skilled workforce, the
40 europeanbusinessmagazine.com
world is watching Morocco, looking to include the country in its restructuring. China has long since played a dominant role in global manufacturing, but rising labour costs, the US-China trade war and, most recently COVID19, has led to a reassessment of the increasingly stretched global supply chains. Reeling from US-China trade pressures, supply channel tensions were already sky high at the start of this crisis. With a demand to bring supply chains and manufacturing closer to final desna on markets, Morocco is emerging as a key pharmaceutical manufacturing centre with easy access
to Western Europe. Currently, the na onal market is the second largest in Africa with a turnover of MAD 14.4bn. Post COVID-19, reloca on and multiplying suppliers in different countries will decrease dependency and ensure that na onal needs are met. Morocco boasts a very rigid and strict regulatory framework in line with European best prac ces, and consequently the Moroccan pharmaceucal sector is considered one of the best in the MENA region. However, to advance Morocco’s a rac veness on the global stage even further, labour laws and legal frameworks that ensure con nual produc on together
