Industry & Retail
From The Report: Morocco 2019
View in Online Reader

Between 1985 and 2016 industry contributed an average of about 19% to GDP, and in 2017 this increased, raising the sector’s contribution to around 25% of GDP. The country’s industrial offering is diverse and includes products in the automotive, electronics, textile, offshoring, pharmaceuticals, aerospace, chemicals and electronics segments. The sector will continue to play an integral role in Morocco’s economy and is set grow an additional 5% by 2022. However, it must first diversify its offering, which could include further shifting to high value-added manufacturing such as aerospace or automotive, and increasing overall exports. The kingdom also has plans to leverage its textile industrial capabilities to become a global sourcing centre for fast fashion and denim. The retail sector in Morocco is expected to continue to grow due to demographic shifts. In addition, higher internet penetration rates and the increasing popularity of online shopping are all levers for sector growth. This chapter contains interviews with Othman El Ferdaous, Secretary of State for Investment, Ministry of Industry, Investment, Trade and Digital Economy; Jean Christophe Quemard, Executive Vice-President for the MENA region, Groupe PSA; Farid Bensaïd, CEO, Ténor Group and President, National Federation of Insurance Agents and Brokers; and Abdellatif Kabbaj, Managing Director, Soft Group.

Articles from this Chapter

Overview

Accelerating growth: Focus on clusters of special economic zones and investment in aeronautics continue to bolster industry expansion
OBG
plus

Morocco’s industrial sector is a key contributor to the country’s economy. Between 1985 and 2016 industry contributed an average of about 19% to GDP, and in 2017 this increased, raising the sector’s contribution to around 25% of GDP. The country’s industrial offering is diverse and includes products in the automotive, electronics, textile, offshoring, pharmaceuticals, aerospace, chemicals and electronics segments. In the period between 2008 and 2015 industry was the second-largest…

Analysis

Flying high: Development of economic zones devoted to aerospace provide opportunity for further advancement in the sector
OBG
plus

Considering Morocco had virtually no domestic aerospace manufacturing 20 years ago, the aerospace industry is still relatively young. Indeed, since the beginning of the century the aerospace sector has experienced unprecedented growth. From 2001 to 2011 the number of companies operating in the sector increased from 10 to more than 100, and employees in the sector grew from 300 to in excess of 10,000. In that same period sales increased to over $1bn. According to Joseph Mitchell, CEO of Bio-Cellular…

Interview

New priorities: Othman El Ferdaous, Secretary of State for Investment, Ministry of Industry, Investment, Trade and Digital Economy, on foreign investment and tech developments
OBG
plus

Interview:Othman El Ferdaous What is being done to attract foreign investment? OTHMAN EL FERDAOUS: The inflow of foreign direct investment (FDI) in Morocco is similar in scale to that of Tunisia, and South-eastern European countries like Bulgaria and Romania, meaning that it has oscillated between 2.5% and 3.5% of GDP since 2008. FDI outflows experienced strong momentum in 2017 with more than Dh9bn (€809.5m) invested mainly in Africa, and increased further by 63% in 2018. This dynamism…

Analysis

Steady expansion: Diversification of markets and increased focus on small and medium-sized enterprises help grow the level of industrial exports
OBG
plus

The industrial segment in Morocco is one of the country’s main earners of foreign currency, due in large part to its export orientation. This is important because Morocco’s economy continues to grow its trade imbalance. According to Bank Al Maghrib, the central bank, exports stand at Dh201.5bn (€18.1bn) while imports are markedly higher, amounting to Dh358.8bn (€32.3bn). Additionally, the country’s foreign reserves have dropped by 0.4%. Therefore, securing higher industrial exports…

Interview

Strong development: Jean Christophe Quemard, Executive Vice-President for the MENA region, Groupe PSA, on increasing integration and growing advantages in the sector
OBG
plus

Interview:Jean Christophe Quemard How has the expansion of the automobile industry impacted local content and exports? JEAN CHRISTOPHE QUEMARD: Following the arrival of major automobile actors, Morocco has developed six additional ecosystems: wiring, metal stamping, battery, powertrain, vehicle interior and seats. Automobile projects are also creating a new industrial pole of excellence in the Gharb region, which should act as a vector for territorial development and sustainable regional…

Overview

Into high gear: Economies around the world are preparing for the opportunities and challenges brought about by the next industrial revolution – Morocco 2019
OBG
plus

The global economy is entering the Fourth Industrial Revolution (4IR), or Industry 4.0, based on the application of new digital and automated technologies in production processes and service delivery. These changes are bringing emerging markets improved productivity, as well as risks – namely, reshoring and the displacement of human labour by automation. Wealthier emerging markets, such as the Gulf states, which have the resources to invest in new technologies, and those with more established manufacturing sectors, such as countries in South-east Asia, appear best placed to reap the benefits of the 4IR. Many of these economies are creating…

Overview

Large-scale development: Urbanisation and increases in household consumption result in a prolonged period of unforeseen growth
OBG
plus

Increased tourist arrivals coupled with GDP per capita hikes and a rising consumer price index all contribute to Morocco’s expanding retail segment. Tourist arrivals increased by 8.3% in 2018. In addition, GDP per capita reached an all-time high of $7480 in 2017, and the consumer price index rose by 2.4% in 2018, marking the highest increase in over five years. The retail sector is estimated to account for 12% of the country’s GDP, and employment in the sector represents 12.8% of total…

Interview

Disruptive trends: Farid Bensaïd, CEO, Ténor Group; and President, National Federation of Insurance Agents and Brokers, on how the sector must adapt to digital developments
OBG
plus

Interview:Farid Bensaïd What are the challenges facing the retail sector? FARID BENSAÏD: One of the main disruptive trends is the emergence of digital platforms, which will eventually result in the disappearance of a number of jobs, as well as completely new kinds of jobs appearing. This brings up the challenge of the adaptation of human resources. The fact that more and more consumers purchase goods or services through the internet also represents a shift in modes of consumption. That…

Interview

Market patches: Abdellatif Kabbaj, Managing Director, Soft Group, on refining public policy to foster local textiles production
OBG
plus

Interview:Abdellatif Kabbaj How can public policy effectively extend ongoing positive trends in the textile market? ABDELLATIF KABBAJ: The sector is undergoing a positive movement towards exports, with growth of 5-7% per year. Companies that decided to develop in the fast-fashion segment are doing well. Although some were created less than two years ago, their financial situations and order bills show this model is working. However, the local market is also in the middle of a complicated…