Author: OBG Admin

Sheikh Ahmad Duaij Jaber Al Sabah-Chairman-Commercial Bank of Kuwait

Morocco invests in agribusiness and improves agricultural efficiency

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As the country’s second-largest industrial subsector, agribusiness makes up around 27% of industrial GDP. The sector’s value added stands at around Dh30bn, (€3.26bn), accounting for about 30% of industrial value added. Made up of some 2050 industrial units ( comprised mainly of small and medium-sized companies), agribusiness employs up to 143,000 people, representing 25% of the industrial workforce. Between 2000 and 2011, sector turnover increased by an annual average of 6%. Key growth segments in recent years include processing for cereals, dairy and poultry. However, the sector remains shy of its potential for several reasons – ranging from competition with the informal sector and imports,

Nhon Luc Ly-CEO-AIA Myanmar; Son Nguyen-Country President-Chubb Life Insurance Myanmar; Daw Zarchi Tin-CEO

Morocco tomato exports to EU on the rise

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Tomatoes constitute one of Morocco’s main fresh exported agricultural produce and a key revenue earner. Between 2007-08 and 2012-13, Morocco exported an average of 414,277 tonnes of tomatoes annually, accounting for 33% of production. Europe remains the kingdom’s primary trading partner in this segment, absorbing about 350,000 tonnes of the crop annually. Production Tomatoes, for the most part, are produced in the regions of Souss-Massa-Draa and Doukkala-Abda. Between 2007/08 and 2012/13, production averaged 1.27m tonnes a year. Conditions conducive for tomato production in Morocco include an affordable workforce and favourable weather conditions. However, recent growth has been accelerated by a number of incentives and segment-specific

Mohammed El Etreby-Chairman-Banque Misr

Morocco expands use of fertilisers in agriculture

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Demand for fertilisers has increased in recent years, prompted by the ambitious Green Morocco Plan (Plan Maroc Vert, PMV) strategy to develop and modernise Moroccan agriculture. Chief among the PMV’s objectives is the target to bring annual fertiliser consumption up from its current 900,000 tonnes to 2m tonnes by 2020. Today, Morocco’s use of fertilisers lags behind its neighbours, consuming 45 units per ha versus 120 units in Tunisia and 250 units in Spain. Consumption Attempts at expanding consumption include efforts by OCP S.A. – the world’s largest phosphate producer – to expand production, ease distribution and enhance awareness on the responsible use of fertilisers.

Pham Hong Hai-CEO-HSBC Vietnam

Morocco shows export advantages in agriculture sector

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In 2013 foodstuffs accounted for more than 15% of the country’s total exports. Fresh fruits and vegetables, processed fruits and vegetables, and fresh and canned seafood constitute Morocco’s three main exported food categories. Overall, Europe takes in up to 63% of the kingdom’s exported food goods and the country has been increasingly looking into diversifying its customer base to supply more markets notably in the Middle East, Eastern Europe and Africa. Fresh & Processed Goods Bolstered by the efforts carried out under the Green Morocco Plan (Plan Maroc Vert, PMV) since 2008 to boost upstream production, exports of fresh food have witnessed a significant uptick

Emmanuel Macron-President of France

Textiles sector growing in Morocco

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With a labour force of around 200,000, the textile sector is a key employer in Morocco. While sector performance has stagnated over the past decade, the last year saw an uptick in activity, with exports increasing by 5% in 2014, according to preliminary figures released by the Office des Changes. Performance  The ailing sector owed its poor performance over the past decade to a number of factors, initially triggered in 2005 by the dismantling of the multi-fibre agreement, which resulted in a dramatic increase in competition from large Asian producers. This was followed in 2008 by shrinking order books on the back of the global

Daouda Coulibaly-Managing Director-Société Ivoirienne de Banque

Government of Morocco offers greater support for traditional arts and handicrafts

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A 2012 World Bank report suggested that as much as one-fifth of private sector employment in Morocco comes from small and medium-sized enterprises (SMEs), while the African Development Bank reported in 2014 that SMEs provide roughly half of the industrial sector’s employment and nearly 40% of its turnover. The authorities are particularly keen to bolster SMEs in the arts and handicrafts industry, which has been the recipient of government support since 2007 under the Vision 2015 plan. The government strategy comprises three components: including the participation of larger companies in the production, distribution and financing of artisanal SMEs to help boost turnover; increased collaboration between

Chaim Zach-Managing Director and CEO-Agric International Technology and Trade; Kabiru Rabiu-Group Executive Director-BUA Group; and Aliyu Abbati Abdulhameed-Managing Director

Reforms in Morocco helping stimulate local medicine production

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Per capita consumption of medicines in Morocco is low, with annual spending per citizen hovering around Dh400-500 (€44-54) compared to €61 in Algeria and €98 globally. This gap is due in large part to the high cost of medicine compared to average incomes. Authorities have worked to broaden health insurance coverage, as well as to implement a price reduction policy for drugs. The latter, initiated in December 2013 and implemented in June 2014, has seen the prices on up to 800 medicines reduced – with encouraging implications for future consumption. Regulatory Changes While the past year has been particularly challenging for the industry, a number

Nhon Luc Ly-CEO-AIA Myanmar; Son Nguyen-Country President-Chubb Life Insurance Myanmar; Daw Zarchi Tin-CEO

Aeronautical industry growing in Morocco

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The Moroccan aeronautical industry has made significant strides over the past decade, with its industrial base growing from around 10 companies to over 100 today. The sector generated $1bn in turnover in 2013 and was the main source of employment for 10,000 people. Aeronautics exports accounted for 6% of total exports in 2013, up from 0.5% a decade earlier, and the list of major manufacturers present now includes Safran, Bombardier, Boeing and Airbus. As one of the six key segments targeted for development under the 2008-15 National Pact for Industrial Emergence (Pacte National pour l’Emergence Industrielle, PNEI), the industry has emerged as one of the

Nhon Luc Ly-CEO-AIA Myanmar; Son Nguyen-Country President-Chubb Life Insurance Myanmar; Daw Zarchi Tin-CEO

International investors are drawn to new developments in PNG

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Papua New Guinea is in the process of restructuring its state sector in order to make it more efficient and to finance necessary capital expenditures. A wide range of options are being explored, from public-private partnerships (PPPs) and privatisations to an extensive rejigging of national assets. For international investors, the steps being taken may offer considerable opportunities. PNG is contemplating making equity and partnership stakes available in some key assets, while potential strategic partners and passive investors may soon be able to participate in the management of large, vital and growing sectors of the local economy. PPP Centre & Beyond In late 2014 the Public-Private

Mohammed El Etreby-Chairman-Banque Misr

New legislation in PNG raises concerns about protectionism

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While Papua New Guinea is one of the most open developing economies in the world, with low tariffs, national treatment for foreign investors, bilateral investment treaties and few closed sectors, new policies could be introduced that would make the environment less liberal and welcoming. So far, the status quo remains and companies are free to invest in and sell into the country as before. However, the rhetoric is heating up, and some steps have been taken that indicate changes could be on the way. Fully Deregulated In some ways the country is a model economy for foreign investors. There are issues with security and bureaucracy,