Industry & Mining
From The Report: Morocco 2016
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With a vision to create jobs and spur growth across the economy, the Moroccan government has focused considerable attention on developing the industrial sector in recent years. Under the framework of several government strategies, key manufacturing segments – including automotive and aeronautic components and agro-industry – have seen injections of capital and the rollout of specialised infrastructure, training facilities and fiscal incentives, helping to transform Morocco’s industrial sector over the past decade. Investments continue in the relatively young aeronautics and automotive industries, and in the recently lagging textiles and pharmaceuticals segments. In the phosphates-dominated mining sector, authorities have sought to increase activity in underdeveloped segments, passing a new mining code after the commodity price drop with the aim of attracting foreign investment, boosting capacity and spurring a more diverse range of output. If local operators and foreign players are able to improve their cooperation, further development of the industrial sector is likely to follow.

This chapter contains interviews with Philippe Petitcolin, CEO and Director, Safran; and Ali Bennis, President, Laprophan.

Articles from this Chapter

Overview

The value chain: Investment in industrial activity has begun paying off, and more is on the way
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With a vision that it can create jobs and spur growth in other areas of the economy, the Moroccan government has focused considerable attention on developing the kingdom’s industrial sector in recent years. Under the framework of several strategic government plans, key manufacturing segments, including automotive and aeronautic components and agro-industry, have seen injections of capital and the rollout of specialised infrastructure, training facilities and fiscal incentives, helping to transform…

Interview

Taking off: OBG talks to Philippe Petitcolin, CEO and Director, Safran
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Interview:Philippe Petitcolin To what extent can countries like Mexico and Morocco become major centres for production? PHILIPPE PETITCOLIN: Strategic offshoring to countries like Mexico and Morocco ensures the competitiveness of production costs necessary to thrive within the US and Europe – the world’s largest aerospace markets. Morocco and Mexico have made strides with regard to operational costs, labour quality, innovation and business climate. Clearly, these two countries are not…

Analysis

Flight plan: Aeronautics firms are choosing the country as a key partner in components development
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Over the past decade, industry players like Boeing, Bombardier and Airbus have moved into Morocco to boost aeronautical capacity. Important deals and government incentives have helped the industry achieve a 17% annual average growth rate since 2010, and in 2015 aeronautics exports reached Dh7.3bn (€670m), according to the Office des Changes. Over 100 aerospace firms have established a base in the country and the sector employs over 10,000 people. The sector has been the recipient of support from…

Interview

Prescribed costs: OBG talks to Ali Bennis, President, Laprophan
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Interview:Ali Bennis What impact has Morocco’s drug price reduction policy had on the pharmaceuticals industry? ALI BENNIS: In 2013 Morocco implemented a policy to reduce the cost of a number of important pharmaceutical goods. This was done with a view to enhancing access to medicine and boosting domestic consumption. The policy has affected the sector at different levels, but as the average price for most of our products has always been affordable, the impact has been manageable for our…

Overview

New tricks: Having traditionally relied on the phosphates industry, the mining sector is diversifying
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Although Morocco is home to a range of metals and minerals, the mining sector has long been dominated by phosphates. The kingdom possesses an estimated 77% of the world’s total phosphate reserves and remains the leading global exporter. Currently the sector contributes 10% of Morocco’s GDP, with 90% of this coming from phosphates. However, the authorities in Morocco have sought to increase activity in underdeveloped segments of mining. According to the US Geological Survey, Morocco accounts…