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

New yields: Alternative assets spark interest in a low interest rate context

  The 2009-13 period was marked by a strong deterioration of the twin deficit in 2012, when the budget deficit and the current account deficit slowed by 6.8% and 9.5%, respectively. However, with the market starting to recover since 2014, interest rates have begun trending downwards, prompting investors – both globally and in Morocco – to turn to alternative assets for higher yields. Challenges In the challenging political context of the Arab Spring, public deficit worsened between 2009 and 2012, increasing from Dh15.9bn ($1.7bn) at 2.1% of GDP, to Dh63.3bn ($6.6bn), or 2.1% of GDP. This was mainly the result of: • An increase in

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Daouda Coulibaly-Managing Director-Société Ivoirienne de Banque

Below ground: Mineral producers are digging for more than phosphates

  With the world’s largest known reserves of phosphates, mineral resources have traditionally played an important role in the Moroccan economy. The authorities have established the country as a major exporter of the resource, and are now looking to diversify the sector towards other minerals. The government has implemented a series of initiatives aimed at attracting domestic and foreign investment into the exploration of less-developed segments of mining activity. A recent revamp of the regulatory framework – coupled with a more diligent promotion of its potential – is helping Morocco gain a foothold in new segments. While some regulatory and operational improvements are yet to

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Pham Hong Hai-CEO-HSBC Vietnam

In the driver’s seat: Automotive manufacturers and suppliers flock to the kingdom

  By setting the right policies, incentives and conditions for foreign direct investment, automotive manufacturing in Morocco has developed from a burgeoning subsector with potential to become the top export product by value in 2018. The country has been able to attract some of the world’s largest car manufacturers and integrate them into an efficient ecosystem characterised by industrial and special economic zones that grant producers easy access to government services and a network of suppliers. The industry has attracted investment from major players from Japan, the US, Europe and China. As of late 2019 the automotive segment had the capacity to produce 700,000 cars

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Mohammed El Etreby-Chairman-Banque Misr

Stretching the fabric: The re-energised textiles industry aims to expand its reach

  With a long tradition in leather and garment manufacturing, textiles is one of Morocco’s most important industries, accounting for 15% of industrial GDP, according to the Moroccan Association of the Textile and Apparel Industries (Association Marocaine des Industries du Textile et de l’Habillement, AMITH). While textiles and garments have grappled with periods of crisis, broad industrial policy measures are helping to relaunch the industry. New Dynamic Under the umbrella of the Industrial Acceleration Plan (Plan de d’Accélération Industrielle, PAI) 2014-20, textiles representatives signed an agreement with the authorities in 2015 to revamp the industry with a focus on product design, the development of local

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Pham Hong Hai-CEO-HSBC Vietnam

Upstream drive: The search for hydrocarbons continues as Morocco seeks to reduce its reliance on energy imports

  As Morocco continues to rely on imports of coal, gas and oil to satisfy its energy requirements, the need to reduce its dependence on imports has long been a priority. To this end, the country has sought to develop its renewable energy capacity, alongside new hydrocarbons exploration projects. A combination of favourable regulatory conditions and successful investment promotion has helped attract international interest in recent years, expanding the country’s potential resource base. Commercially viable discoveries of oil and gas reserves could have a significant

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Pham Hong Hai-CEO-HSBC Vietnam

On the move: Changes in population and movement patterns have led the public and private sectors to come up with new urban mobility solutions

  As economic development progresses and urban centres rapidly grow, Moroccan cities are increasingly facing urban mobility challenges and seeing disruptive technologies change the way these problems are addressed. For example, Rabat, which saw its population increase by 18% over the last decade, is expected to accommodate 1.94m passenger movements per day in 2024, up from 1.49m in 2014. Casablanca’s 2019 figure of 7.8m movements per day is expected to rise to 10m by 2030. This sustained increase will require a harmonised effort between public

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

Wider berth: The government is upgrading the country’s ports with an eye to transforming Morocco into a regional shipment hub

  Morocco has 27 commercial ports that see a combined annual traffic of 92.3m tonnes in goods. The kingdom’s 2030 National Port Strategy, spearheaded by the National Ports Agency (Agence Nationale des Ports, ANP), allocates investment of close to $7.5bn to expand and upgrade the country’s ports along the Atlantic and Mediterranean coasts. The ANP will oversee the management and development of all ports, expect for Tanger-Med, whose renovations will be administered by the Tanger Med Port Authority (TMPA). “The Moroccan port landscape is evolving

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

Here to help: The government is working with the private sector to make the country an ideal offshoring destination

  As one of the main pillars of Morocco’s National Pact for Industrial Emergence, the country’s offshoring sector has undergone a transformation thanks to infrastructure development and policies aimed at making the kingdom the preferred offshore destination in French-speaking Africa and beyond. New Opportunities With global companies moving towards a more Anglo-Saxon organisation style, increasingly outsourcing their operations, Morocco is seeing new opportunities and two specific challenges: the readiness of its market, and competition from sub-Saharan countries. As Morocco continues to develop and its living

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

Expanding scope: Investing in aquaculture to leverage untapped resources

  Morocco has access to a significant volume of maritime resources. In 2019 the kingdom’s maritime fisheries sector had an output of close to 1.46m tonnes and was valued at nearly Dh11.7bn ($1.2bn), according to the Department of Maritime Fisheries (Département de la Pêche Maritime, DPM). Much of its development strategy has been based on the Halieutis Plan, which was launched in 2009 with the goal of improving performance, enhancing food security and maintaining the long-term sustainability of aquatic resources. The plan is set to run to 2020, but the authorities set out goals for a second phase, which will run from 2020 to 2030.

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Stuart Tait-Regional Head of Commercial Banking-Asia Pacific

Cross-border connections: Many African governments are taking steps to promote regional integration and intra-continental tourism

  Africa’s tourism sector is booming. With a growth rate of 5.6% in 2018, compared with the global average of 3.9%, the continent is home to the second-fasted expanding tourism industry in the world, after the Asia-Pacific region. Representing 8.5% of the continent’s GDP, tourism contributed a total of $194.2bn to African economies in 2018. Multiple governments have recognised the importance of tourism to their countries’ economic well-being. Many of them – particularly Kenya, Rwanda and South Africa – have adopted strategies to improve their

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