Business opportunities in the mediterranean focus on ict in morocco by ibrahym

Â© EuroMed@Change 2013

Table of contents 1. Mediterranean overview...................................p.5

Building EuroMed partnerships

Authors

This Business guide has been prepared by Bertrand Copigneaux, with contributions from Franck Le Gall, Marc Pattinson, Asmaa Messaoudi and Soraya Bernard.

References

Disclaimer

The Mediterranean Business Guide, focus on ICT in Morocco has been prepared by INNO AG under the EuroMed@Change Project, a Preparatory Action initiated by the European Parliament and implemented by the European Commission (DG Enterprise and Industry). EuroMed@Change proposes new dynamics for SME and cluster internationalisation between Europe and 4 targeted partner countries: Morocco, Tunisia, Egypt and Lebanon. It is managed by four organisations from across Europe (ANIMA Investment network as Project leader, the European Business Innovation Centre Network, INNO AG and the Fondation Sophia Antipolis as partners) and it coordinates with more than 45 associated regional businesses, finance and innovation networks.

The author would like to thank the Ministry of Trade and ICT of Morocco, The Moroccan Investment Development Agency, and the Morocco Observatory for Information and Communication Technology (OMTIC) for their support and contributions. This publication has been produced with the support of the European Commission. The contents of this publication are the sole responsibility of INNO AG and can under no circumstances be regarded as reflecting the views of the European Union”.

2. Market trends and opportunities......................p.7 3. Foreign direct investments..............................p.9 7. ICT funds operating in Morocco............................................................p.11 4. Key actors and events....................................p.13 5. Recent national policies................................. p.15 6. Opportunities and international programmes... p.17

List of acronyms 

AMDI: Moroccan Agency

Investment

Development



ANPME : National agency for promotion of small and medium enterprises



ARNT: Regulation agency of telecommunications



CIGOV: eGovernment Inter ministerial committee



DHS: Moroccan Dirhams



EFTA: European Free Trade Area



EOA: European off-shoring association



FDI: Foreign Direct Investment



FNEM: National federation of e-commerce



ITU: International Telecom Union



OMTIC: Moroccan Observatery of Information and Communication Technologies



RMIE: Moroccan Incubation and spin-off network

Mediterranean overview The two sides of the Mediterranean represent 7% of the world population, and represent the leading GDP on the planet as they produce 15% of the worldâ&#x20AC;&#x2122;s annual wealth and carry out 16% of trade. In the North, ICT represents around 2% of GDP, and in the South, 3%, 4% or even 5%1. The development of ICT is not only contributing to growth but is also having an important social impact on societies, as the Arab spring of 2011 has shown. The level of development is still unequal between the two sides of Mediterranean, but the South has shown a strong dynamism in catching up and is in several domains technologically and scientifically comparable to the North.

A skilled generation Consumption of ICT technologies has developed rapidly in the Mediterranean South. Progress in mastering and accessing mobile phone and IT technologies is good, and the computerization of society and the economy is following. Mediterranean consumers can now be considered as advanced users. Mobile phones are used for remote banking, getting economic information, accessing emails, etc... This assimilation of ICTs is occurring rapidly in the South because of the rapid extension of networks access and of the specific demographic structure of 1

IPEMED (Institute Mediterranean Region)

Economic

Prospective

the region. Young people in the South are making considerable generational impact in the use and acceptance of new technologies and media. This phenomenon is particularly strong since inhabitants south of the Mediterranean are on average ten years younger than those in the North. Education is crucial here and the role played by ICTs in this area is constantly increasing, especially as eLearning develops and offers new opportunities.

Figure 1 - Network penetration (source ITU)

Developing networks Although the development of fixed networks infrastructure in the South remains behind the level of the North, the growth in mobile networks has made it possible for countries in the Mediterranean South to rapidly catch up with the equipment levels of countries in the North. In most of the southern countries the widespread access to broadband will mainly happen through mobile networks( few exceptions exist - Lebanon and Turkey where the fixed infrastructure has been already well developed). If penetration rates of mobile networks are compared, there is no clear divide between countries in the South and North (European Union). The move from fixed to mobile networks has been very strong in the Mediterranean South. In the first decade of the 21st century traffic mainly travelled through fixed networks, often via shared channels. In 2010 it was travelling through mobile networks fostering its rapid growth.

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Figure 2 - Submarine cable network in the Mediterranean region

Voluntary policies Countries in the South have acknowledged the importance of ICT and set up ambitious government policies to support the deployment, use and development of ICT. National strategies and plans for the development of ICT have been drafted for most of the countries. Spreading the ICTs in countries with young populations is a strategic line of development with the goal to build a knowledge-based economy integrated into markets in the North. Most of the national policies include strong efforts on network deployment and access to ICT (including policies to reduce the access costs to internet connections). The development of the eGovernment initiative is also ambitious in the Mediterranean South region as it is considered an opportunity to reinforce the quality of administrations. Digital literacy is also considered an important goal in particular offering opportunities to young people in developing countries who are keen to access the new communication tools. Most countries have set up ambitious training and education programmes for ICT. To offer local opportunities to this emerging skilled workforce the governments are developing programs targeted towards the development of local entrepreneurship such as incubators networks , clusters and technological parks (like the Egyptian

Smart Village which specialises in cutting-edge technologies, and CasaNearshore Park in Morocco, that is set to generate 30,000 jobs). Most countries also directly target out-sourcing and have aggressive development and investment policies offering numerous advantages and tax breaks to foreign investors.

Dynamic economies, global impact The development of the ICT business ecosystem is unequal between the different countries of the south but still mostly characterized by dynamic recent developments and strong levels of Foreign Direct Investment (FDI). Some countries such as Egypt and Tunisia have been rewarded for their long term commitment and voluntary policies toward the development of ICT with very dynamic local business environments. Others (such as Morocco) have targeted more strongly outsourcing and have become an important center of North Africa with the presence of ICT multinationals (IBM, SAP, Microsoft, HPâ&#x20AC;Ś). Others such as Lebanon have created a cutting edge education system which produces a highly skilled workforce. The societal and economic impact of the rapid spread of ICT in the Mediterranean South region is very strong and offers good cooperation opportunities with the North, towards the creation of a digital Mediterranean region, re-establishing the Mediterranean as a cradle of exchange and communication.

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Market trends and opportunities Country Situation The Information Technology (IT) sector is one of the most important sectors in the Moroccan economy due to it contribution to human and economic development. This sector has a market size of more than 3.8 billion Euros and represents more than 7% of the national GPD. Over the next 3 years, the market is expected to grow by 60 % and reach a value of 6.3 billion Euros by 2015. More than 38 000 people are employed in this sector, and it is expected to reach over 58 000 in the next four years. To this end, strong support is given by the Moroccan government to the ICT sector.

Interior market opportunities Ranking 76 on 155 in the access index of the ITU2 and fourth of the southern Mediterranean region, Morocco has strongly improved its network infrastructure in recent years. The fixed telephone has also improved but with only 11 fixed telephones lines per 100 inhabitants, Morocco is still a some way behind, compared to other countries. The fixed telephone has now been mainly replaced by mobiles phones. The mobile network is however very well deployed with an equipment rate of 98,4% and 113,3 mobile subscriptions per 100 habitants. Mobile internet also contributed to the development of the internet access by covering more than 4% of the 2

International Telecommunication Union, Measuring the Information Society 2012.

population (when it is only 2% in similar countries). Despite the mobile contribution, access to internet is quite low for parts of the population (6%) compared to the ones with a computer (10%). Most of the companies are equipped with computers (98%) but the employeeâ&#x20AC;&#x2122;s equipment rate is only 57%. 3 Morocco is the first country in North Africa to install a 3G network and it ranks first on the ICT development index in this region. Digital literacy is one of the main objectives of the Moroccan government in the ICT field. ICT training was integrated into the education system in 1999. The national strategy for ICT development focused on five key themes that are important for facilitating the role of knowledge in development and for the effective use of ICTs: education, governance, private sector development, e-commerce, and access. As a result of this policy, the telecommunications cost dropped, the number of cyber cafĂŠs and access to computers and Internet, even in small towns has risen considerably over the last few years. The Moroccan population is young and active with 64% of population aged under 34 and an active population of 12 million. Secondary education enrolment rate4 is up to 70%, and 7.84%5 of students are studying in the field of ICT in 2010. 3 4

Figure 3 - Network Readiness Index of Morocco 2012

Omtic

World Bank data omtic

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(source: World Economic Forum)

ICT training is also important to Moroccans as 34% of Higher Education establishments can train students in ICT at one of the 54 ICT training centres. This enables Morocco to benefit from a qualified labour force that has good ICT skills and knowledge.

Export & off shoring opportunities Morocco has become a major destination for investment from francophone countries in the call centre sector, ICT off-shoring, as well as in the outsourcing of business processes. Moreover, the sector has had considerable success. In one year, more than 50 companies have expressed an interest in Casanearshore and Rabat Technopolis. The first two instalments of Casanearshore are now completely booked. The sector has witnessed the creation of more than 20,000 jobs between 2005 and 2008. Morocco has significantly contributed to this success by making the off-shoring business as one of the pillars of its industrial strategy, and has set up a dynamic policy to enhance Morocco’s attractive qualities to foreign clients. In 2012 Morocco was elected best destination for off shoring by the European off-shoring Association (EOA).

the Export volume, Spain with 18.2%, India 6.9%, Brazil with 5.1% and United-States with 4.6%, showing the strengthening position of the Moroccan ICT sector in the world economy. The ICT industry in Morocco covers a large range of activities such as telecommunications, audio and video, computer and related equipment; electronic components; and other information and communication technology goods. International companies are also interested in the skills and knowhow available in Morocco in several professional areas related to information systems: engineering consultancy and information systems, integration, geographical information systems, development of digital content in Arabic and decision systems. The ICT business environment is dynamic in Morocco with the support of technoparks (such as the CasaTechnopark), incubators, business events (MED-IT), and investment funds (Maroc Numeric Fund, Media Network Fund).

Dell has been in Morocco since 2001 and has contributed to the creation of more than 2200 jobs. Anwar Dehar, the former head of Dell Morocco has declared that “Dell’s choice to come to Morocco responded primarily to operational objectives. Dell wanted to develop a service site, which would minimize costs, but the linguistic criteria and the geographical situation were also Morocco’s strong assets. “ Dell opened in 2012 in Casanearshore the biggest business centre in the Europe-Africa-Middle Region, with a surface area of 20 000m².

Exports of ICT related activities represent a substantial proportion of total exported services, accounting for 20.1% of total exports in 2010 6. The main export destinations are France with 20.3% of 6

MOROCCO THE BEST DESTINATION FOR OFFSHORING

World bank

Foreign direct investment ICT is the most important sector in terms of FDI in the country. In 2010 this sector represented over a quarter of the Foreign Direct Investments in Morocco. In 2011-2012 Morocco was highlighted by the Financial Times - “African Countries of the Future” as the most attractive African destination for Foreign Direct Investment, replacing South Africa that had held this rank for three consecutive years. In 2011, Morocco successfully attracted 70 new projects, which, according to the report, “demonstrates the growing trust of foreign investors in the Moroccan business climate”. Morocco is one of the “best per forming countries in the region in 2011”, with a 40% increase in the number of projects and an increase of over 50% in capital investments

Policy toward investors The policy toward investors is handled by the AMDI (Moroccan Investment Development Agency). It offers a series of incentives to national and foreign investors as part of its strategy to attract investment in growth sectors. A series of exemptions and tax breaks are offered by various Ministries and government agencies to support companies in their creation and operational phases.

significant flow of domestic and foreign private capital. Morocco implemented major reforms including publishing a decree in May 2011 that simplified business start-up procedures. The minimal capital requirement for starting a business was eliminated, cutting start-up costs by 42%. Half of the six procedures for starting a business were eliminated, and the company name search can now be handled online at the one-stop shop AMDI. In addition, Morocco eased the administrative burden of paying taxes for firms by enhancing electronic filing and payment of the corporate income tax and value added tax. The two electronic systems are now used by the majority of taxpayers.

Figure 4 - Tax rates in Morocco (source AMDI)

MOROCCO : FDI and partnership project announcements in ICT (2003-2013, ANIMA-MIPO)

Morocco also strengthened investor protections by allowing minority shareholders to obtain any nonconfidential corporate document during trial.

Morocco has liberalized its economy by easing procedures, providing better protection to private operators through introducing new laws aimed at improving investment conditions and acquiring a

Data processing and software Télécom and Internet

The 10 biggest FDI announcement in ICT in Tunisia (2003-2012, ANIMA-MIPO) Investor

Origin

Vivendi Vivendi / Telecom

France

2006 Brownfield

Financial JV, The telecommunications company to buy 40% stake in partial Meditel, Morocco's second mobile operator from its 2010 acquisition Moroccan shareholders CDG et FinanceCom

640

Kuwait

Financial JV, The 50/50 consortium of the its fellow company Al Ajial to partial acquire a 31% stake in Wana, Morocco's third mobile 2009 acquisition telecom operator

253,6

2006 Brownfield

Telefonica, which owns 32.2% of Meditel, will contribute to the necessary investments induced by the operator's new fixed and UMTS licences

145,03

2006 Brownfield

PT, which owns a 32.2% share in Meditel, will contribute to the necessary investments induced by the operator's new fixed and UMTS phone licences

2008 Brownfield

Telefonica, which owns 32.2% of Meditel, will contribute to the MAD 4.2 billion investments in infrastructures planned over 2 years

2008 Brownfield

PT, which owns 32,2% of Meditel, will contribute to the MAD 4.2 billion investments in infrastructures planned over 2 years

France

2003 Greenfield

New design and software development in Rabat

Number of FDI projects

1200

1000

10 8

600

499

Spain

Invested amounts (€m) Number of partnerships

project

800

2009 Brownfield

Portugal Telecom / Meditel Portugal ST Microelectronics

667,5

France

Spain

Morocco FDI and partnership announcements in ICT (ANIMA-MIPO)

1100

Maroc Telecom, a 53%-owned subsidiary of Vivendi, to launch a massive 2-years investment plan for the expansion & modernisation of its infrastructures

Portugal Telecom / Meditel Portugal

Telefonica

€m

Vivendi's Maroc Telecom unveils a Euro 663 million investment plan including a net job creation of 150 over 3 years

Maroc

Telefonica Meditel

Project

France Maroc

Zain (MTC)

Type

Financial JV, partial VU increases its share in Maroc Télécom to 51%, up from 2004 acquisition 35%

France Telecom / Orange France Vivendi / Telecom

Date

400

200

0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Morocco: Origin of FDI announcements in ICT (in nb of projects, 2003-2013, ANIMA-MIPO) 45

40 35

145

30 25

118,6

15 10

118,6 100

5 France

USA+ Canada

Spain

Other EU

Gulf

Other countries

ICT specialised investment funds for Morocco ICT focused funds targeting Morocco (2003-20013- Source ANIMA-MedFunds) Fund manager

Investor country

Investor region

Name of the fund

Launch date

Fund size (targeted)

MED host country

Host region

Investment stage

Arbah Capital

Saudi Arabia

Gulf

Arbah Nanotechnology Fund

2008

$100 to 500m

MENA

1. Early stage

New Enterprise

United Arab Emirates

Gulf

Gulf Venture Capital Fund I

2008

$100 to 500m

MENA

1. Early stage

twofour54

Abu Dhabi

UAE

AppsArabia Fund

2011

Unknown

MENA

1. Early stage

Iris Capital

Dubai

UAE

STC Ventures

2011

$50 to 100m

MENA

1. Early stage

Wamda

Lebanon

Mashreq

Wamda Capital Fund

2011

$20 to 50m

MENA

1. Early stage

212 venture Capital

Turkey

2011

$20 to 50m

Turkey

1. Early stage

Y+ Ventures

United Arab Emirates

Gulf

212 venture Capital Fund Y+ Ventures Fund

2012

Unknown

MENA

1. Early stage

EBRD

Europe

EBRD Venture Capital

2012

$100 to 500m

MENA

3. Development

MENA Venture Investment

Jordan

Mashreq

MENA Venture Investment

2012

Less than $20m

MENA

1. Early stage

Middle East Broadcasting

Dubai

Gulf

MBC Ventures

2013

Unknown

MENA

1. Early stage

Sinbad Ventures

Jordan

Mashreq

Sinbad Ventures Fund

2013

Less than $20m

MENA

1. Early stage

Kuwait

Gulf

Start-up Factory seed Fund

2013

Less than $20m

Tunisia

Maghreb

1. Early stage

Egypt

Mashreq

EMEA Technology Investment Fund

n.a.

$20 to 50m

MENA & Other emerging countries

2. Second stage

KIPCO / United Gulf Financial Services North Africa Holding Company EFG Hermes / EMEA technology investments

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Key contacts Government & Governmental organisation Ministry of Industry, Trade and Telecommunication

Ministry is in charge of ICT strategy and its implementation in Morocco

http://www.mcinet.gov.ma/

CIGOV Centre interministeriel eGovernement

eGovernment inter-ministerial committee

http://www.egov.ma/Gouvernance /Pages/CIGOV.aspx

Gov.ma

Main eGovernment portal

http://www.egov.ma/

ARNT – Agence de Regulation Nationale des Télécommunications

National regulators of telecommunications

http://www.anrt.ma/

OMTIC – Observatoire Marocain des Technologies de l’Information et de Communication

Moroccan observatory of ICT. Follows and provide statistics on deployment, access, use of ICT technologies as well as eGovernment and digitial literacy

http://www.omtic.gov.ma/

AMDI – Agence Marocaine de Développement et d’Investissement

National agency for development and investment. Responsible for the Invest in Morocco initiative.

http://www.invest.gov.ma/

RMIE – Réseau Maroc Incubation et Essaimage

National network of incubatos and spin-offs

http://www.rmie.ma/

ANPME – Agence National des Petites et Moyennes Entreprises

National Small and Medium Enterprise promotion agency.

http://www.anpme.ma/

FNEM – Fédération Nationale du eCommerce

National federation of eCommerce operators and editors.

http://fnem.org/

APEBI – Fédération Marocaine des TIC et de l’Off-shoring

Association of Moroccan companies on ICT and off-shoring gathers more than 180 companies of the sector.

http://www.apebi.org.ma/

Casablanca Technopark

Ready to use offices and facilities, Access to financing, Business support: marketing assistance, communication and Events/networking

http://www.technopark.ma/

Rabat Technopolis

Facilities / administrative assistance (Office of Vocational Training and Work Promotion OFPPT) / Assistance for human resources (National Agency for Promotion of Employment and Skills ANAPEC) / business creation and support of projects (Regional Investment Centre)

http://www.technopolis.ma/

Maroc Microelectronics Cluster

Promotion, marketing, Networking, identification of collaborative projects

http://www.microelectronics.ma/

CE3M – Cluster Electronique Mécatronique et Mécanique du Maroc

Networking / Development assistance / Innovation Intelligence and Protection / Identification and development of Collaborative projects

http://ce3m.com/

Maroc Numeric Cluster

Networking, Development assistance, Innovation Intelligence, Collaborative projects

http://marocnumericcluster.org/

Clusters and technological parks

Incubators Al Akhawayn Incubator

University of al akhawayn incubator specialised in ICT

http:// www.aui.ma/

Incubateur du Groupe ISIAM d’Agadir

Incubators of the ISIAM business school open to ICT and other domains. Located in Agadir.

http://www.isiam.ma/

DYNAMIQU'EST, l'incubateur d'entreprises de l'université Oujda

Multi-domain incubator of the university of Oujda.

http://webserver1.ump.ma/

Centre Universitaire Doukkala Incubation (CUDI) - Université el Jadida-

University incubator centre in El Jadida open to ICT and other innovative companies

http://www.ucd.ac.ma/

Incubator of the ENSIAS ICT university Incubator of the AFEM : Association of Women in Business in Morocco. Support multi-domain (including ICT) company creation by women.

http://www.ensias.ma/

Technical centre of technological innovation of the Mohammadia engineering school in Rabat.

http://www.emi.ac.ma/

Incubateur RESIN Casa Pionières (Incubateur de l'AFEM) Centre d’Innovation Technologique (CIT) -Ecole Mohammadia d’Ingénieurs-

http://afem.ma/

ICT

Major Events MED-IT

IMWI Days

Sector: ICT

Sector: IT

Number of editions: 5 (2008, 2009, 2010, 2011, 2012)

Number of editions: 1 (2012)

Organiser: XCOM MAROC

Organiser: Inwi

Focus: international tradeshow dedicated to ICT The Event has an international appeal with 49% of the company originating in the broader Mediterranean region.

Focus: The IMWI days are an initiative supported by the third Moroccan network operator. Conferences and roundtable take place over two days and the event also include a development contest (hackathon)

Expected Participation: more than 4000 visitors and 180 exhibitors including most of the major Moroccan actors of the ICT domain

2012 participation (organisers data): competitors

Next event : 19 - 23 November 2013, Casablanca (Office des Changes)

Next event : n.a

Information : http://www.med-it.com/

Information : http://www.inwidays.ma/

Casablanca Start Up weekend

Maroc Web Awards

Sector: ICT

Sector: Web initiatives

Number of editions: over 400 past events in 100 countries around the world

Number of editions: 5

Organiser: Kouffman foundation Focus: Start-Up weekend are organized in Casablanca to bring together innovators and mentors to work on start-up ideas. The event concludes with a contest to distinguish the best start-up. The event is supported by major ICT industrials (Google, Microsoft, Amazon).

Focus: Maroc web initiative concerns both business: best application...

2011 participation (organisers data): n.a

2013 participation: 57 500 participations

Next event: 28 June 2013, Casablanca (Technopark)

Next event : n.a

Information : http://casablanca.startupweekend.org/

Information : http://www.marocwebawards.com/

300 participants and 100

Organiser: Synergie Media Web Awards event distinguishes the most successful Moroccan of the year. The competition has different categories and personal activities (best blog, twitter, facebook page ...) and start-up, web-agency, ecommerce site, mobile application, web

Recent national policies Global ICT vision and policy The IT sector is now one of the priority sectors of the Moroccan economy, given the contribution it is having on human and economic development. The “Digital Morocco” plan has been designed to ensure the insertion of Morocco, through its companies and universities, in the international economy of knowledge. Digital Morocco 2013 is part of the National Strategy for Information Society and Digital Economy, which aims to develop an efficient use of IT in all areas of economic and social life in Morocco, to ensure sustainable national growth and competitiveness. The main objectives are:    

To make high-speed internet available to citizens E-government program for the administration to respond to the user’s needs To encourage the digitalization of SMEs To develop local IT, favouring the emergence of centres of excellence with high export potential.

Others initiatives have been introduced, especially in the ICT training sector. The Genie initiative’s main objective is the generalisation of ICT in all public schools with the aim of improving the quality of teaching.

The Marwan project, launched in 2002 had the objective to ensure low-cost access to the Internet for Moroccan universities, to establish a network hosted in universities and administrated by dedicated staff, and to provide a scalable architecture and large bandwidth.

Organisation of ICT policies The actual policy implementation and regulation responsibility is transferred to different Ministries and governmental bodies depending on the topics involved. The Ministry of Industries, Trade, and Telecommunication is in charge of the conception and implementation of the ICT policies and strategies. Several other governmental offices are also concerned by ICT policies such as the e-Government Interministerial committee known as CIGOV. It is chaired by the Minister in charge of Industry, Trade and New Technologies. This committee is responsible for setting the e-government objectives and assessing their achievements. The ARNT is the public organisation in charge of the regulation and the organisation of the ICT sector. It aims to create a favourable market for the ICT development in Morocco and to ensure this country is a main actor in this field. The AMDI (Moroccan Investment Development Agency) is responsible for promoting Morocco as a key

CASA TECHNOPARK Casablanca Technopark is an information technology Business cluster complex located in Casablanca, Morocco and inaugurated in October 2001 as a Public Private Partnership. It covers 30000 m² and hosts more than 170 companies mostly specialised in the ICT sector: software editors, web agencies, e-commerce, ICT consulting firms, and distributors. The cumulated turnover of the technopark companies exceeds 700 million DHS and about 20 new companies are created in the technopark each year. The companies of the technopark represent about 10% of all ICT companies in Morocco. The services provided include hosting (with specific prices for SMEs and Start-ups) as well as communities’ services, networking opportunities and access to financing opportunities.

investment destination, and attracting, facilitating and retaining investment in the country. The AMDI has recognised the importance of Information Technology and Telecommunication sectors have been identified as key sectors for investment opportunities in Morocco. The OMTIC (Morocco Observatory for Information and Communication technology) is the organisation that provides data and statistics for the development and understanding of the Morocco ICT sector.

Telecom infrastructure policy The Moroccan Government in 2010 identified general guidelines for the development of the telecommunications infrastructure in Morocco in order to generalize access to all parts of the country without exception, to reduce the digital divide and encourage broadband development.

e-Governement The e-government program is defined as a strategic priority of the 2013 Maroc Numeric Plan. This plan, with a budget of more than 5 billions Dhs aims to transform Morocco into an information society. This transformation is undertaken in alignment with the expectations of the citizens and the businesses. This policy includes:   

Investment support in the telecommunications sector Deployment of appropriate infrastructure to meet changing of uses Expanding access to telecommunications services (voice and Internet)



Activation of regulatory levers capable of developing competition between the various stakeholders.

The number of online transactional or integrated services rose from 7 in 2008 to 18 in 2010. 7 Before 2008 it was less than 1%.

Policy toward Business and SME The e-government program is also helping SMEs. Indeed the lack of awareness on IT benefits and resistance to change have been identified as the main obstacles to the computerisation of SMEs. To overcome these obstacles, IT training programs will be proposed, mainly as a free national initiation programme, for SME managers to switch to IT. The Moroccan government is helping SMEs through the ANPME: national agency for promotion of small and medium enterprises. Three main programmes support the SMEs development: IMTIAZ, MOUSSANADA and MOUKAWALTI. The first two programmes are open to non Moroccan entrepreneurs. The Imtiaz Program aims to support the growth of the most promising SMEs, subsidizing up to 20% of their investment to encourage growth in this sector. The Moussanada Program aims at improving the productivity of SMEs through functional programmes by providing expertise and information systems.

E-GOVERNMENT MATURITY This international benchmarking made by the United Nations illustrates the position of Morocco in terms of e-government maturity. This ranking explains why e-government is now a priority of the Moroccan government and the new digital plan.

Major opportunities and international programmes Main Investment Opportunities The ICT sector is one of the priorities of the Moroccan government and to this end many national plans (such as Digital Maroc 2013) support the development of this sector by facilitating investment opportunities in many ICT fields. The off shoring sector is one of the most promising sectors in the Moroccan ICT field and represents 0.7 billion Euros of turnover, more than 46 000 jobs and about 300 call centres. Started in 2008 the e-commerce sector in Morocco has truly expanded during the last two years. According to the FNEM (the National Federation of E -commerce in Morocco), the total amount of transactions carried out online “e-commerce and distance selling,”-including payment by credit card-reached a turnover of over 45.5 million euros in 2011. This shows a remarkable growth of 72% in comparison with 2010.The FNEM cited over 670 active e-commerce websites in Morocco which have completed a total of over 1.29 million online transactions in 2011. This reveals a 230% increase from 2010 and an average online transaction of 750 MAD ( 67€). Opportunities also exist in the electronics field, which represents more than 9200 jobs and 0.98 billion Euros of exports. This number actually multiplied fivefold between 2004 and 2011, showing the tremendous potential of growth of this sector. An additional 8

AMDI

turnover of 475 millions Euros is also expected over the next 8 years. Furthermore the strategic plan also foresees the creation of a industrial cluster called “Electronic City” and located in Mohamadia.

Access to regional markets Only 14km south of Europe, Morocco is a competitive platform for export. The average wage is 244 Euros per month, so almost ten times lower than in Spain. It can count on an educated, multilingual work force: Over 20 million French speakers and 5 million Spanish speakers, there is also a large population of English among young people and management staff. Morocco can also count on a wide Diaspora network (especially in France and Spain) which provides investment and business linkages opportunities. As founding member of the WTO, Morocco strengthened its regional integration in 1996 by signing an association agreement with the European Union, and therefore benefited from an advanced status. Additionally, Morocco has signed various freetrade agreements with its main trading partners, such as the Greater Arab Free Trade Area (1998), Tunisia, Jordan, and Egypt (Agadir Agreement, 2004), the United States (2005), Turkey (2005), and EFTA countries (1997). So thanks to diverse free-trade agreements, Morocco offers investor free duty access to a market of 55 countries representing more than 1 billion consumers and 60% of world GDP.

INITIATIVES FOR ENTREPRENEURS In order to develop the innovative action and R&D in Morocco, the Ministry of Industry, Trade and New Technologies launched a strategy called “Initiative Maroc Innovation”. This plan is divided into 4 sections:    

Improved governance and policy framework Development of specific infrastructures Funding and support Mobilization of talent

The purpose of this initiative is to give further encouragement to the Moroccan innovation, and to allow the emergence of truly innovative companies. The mains objectives are: producing 1000 Moroccan patents a year and creating 100 innovative start- ups a year starting in 2014.

Business environment The RMIE (Morocco Incubation and spin-off network) was established in 2002 by the government and others socio-economic actor encourages innovation and the creation of innovative companies. One of its main missions is to train, assist and advise incubators and projects holders to create innovative companies. With more than 13 members all over the country, the RMIE aims to enhance the entrepreneurial spirit in Morocco by allowing companies to benefit from a better business environment and a network of experts, partners and investors. It takes 12 days to start a business in Morocco, and it is listed as the fifth country on the ease of doing business in the Mediterranean region.

R&D Programmes Morocco has made significant progress in promoting R&D in recent years. The number of partnerships with foreign universities and research centres has increased highlighting the credibility enjoyed by Moroccan academics and researchers. Moroccan researchers are leading R&D teams in innovative areas, such as microelectronics, biotechnology and nanotechnology. A support fund for technology innovation has been set up with “initiative Maroc Innovation”.

MAROC NUMERIC MEOLINK

FUND

INVEST

Created as part of the Maroc Numeric 2013 plan, Maroc Numeric Fund has a capacity of investment of 100 million Dirhams and targets ICT projects with investment between 1 and 8 million Dirhams. In 2012 it invested 3.5 million Dirhams in Meolink a start -up located in Casablanca and offering M2M software solution (in a “software as a service” model). The company specialises in energetic performance and intelligent building and offers solutions for Smart Energy (optimizing energy consumption), Smart Buildings (automation) and Smart Telecom (remote operation and wireless networks). The technology is based on sensor network / M2M technologies and the main market targeted includes industry, construction, retail and tourism. The company can count on partnerships with Orange, Cisco, and IBM.

MAROC WEB AWARDS Organised for the 5th consecutive year the Maroc Web Awards event distinguishes the most successful Moroccan web initiative of the year. The competition is has different categories and concerns both personal activities (best blog, twitter, facebook page ...) and business: best start-up, web-agency, ecommerce site, mobile application, web application... Last year the Maroc Web had more than 57000 participations with over a thousand proposals. The event is undertaken in partnership with Maroc Telecom, Nokia, and Medi 1 TV. The prizes are distributed at an official event in Casablanca.

This guide is a Doing business toolkit dedicated to clusters, SMEs, or entrepreneurs interested in developing business partnerships in the ICT sector in Morocco. It provides an overview of the main opportunities available for the private sector, as well as concrete and useful data for those interested parties who require more detailed information. It has been prepared by INNO AG under the EuroMed@Change Project, a Preparatory Action initiated by the European Parliament and implemented by the European Commission (DG Enterprise and Industry). EuroMed@Change proposes new dynamics for SME and cluster internationalisation between Europe and 4 targeted partner countries: Morocco, Tunisia, Egypt and Lebanon. It is managed by four organisations from across Europe (ANIMA Investment network as Project leader, the European Business Innovation Centre Network, INNO AG and the Fondation Sophia Antipolis as partners) and it coordinates with more than 45 associated regional business, finance and innovation networks.

ÂŠ EuroMed@Change 2013