Investinmorocco

African dividend: India-Morocco MoU to boost bilateral trade is welcome

Blog by , a Delhi-based journalist working for the Edit Page of The Times of India, on the relations between India and Morocco.

“New Delhi and Rabat enhancing bilateral economic cooperation makes perfect sense”

 

In my previous blog I had mentioned the potential for solar energy cooperation between India and the north African nation of Morocco. Now, in a major takeaway from the ongoing India-Africa Forum Summit, the Moroccan Firms General Confederation (CGEM) and the Federation of Indian Chambers of Commerce and Industry (FICCI) have inked a memorandum of understanding to boost trade relations between the two countries. The MoU seeks to increase trade missions and information exchange to enhance business ties between India and Morocco. It also aims to establish a platform of exchange in the areas of investment, industry and tourism.

This is welcome as it exemplifies efforts to diversify the existing phosphate-centric trade relations between India and Morocco – the latter is the largest exporter of phosphate in the world. In fact, areas such as pharmaceuticals, automobile and textile are highly conducive for bilateral trade, investment and cooperation. Add to this Morocco’s strategic location on the western edge of north Africa with both Atlantic and Mediterranean coastlines. Its proximity to Europe – only 14 kilometres – also makes Morocco an ideal hub for exports into European markets.

But the real reason that makes Morocco an attractive investment destination is its political stability. It was one of the few countries in the Middle East, North Africa (MENA) region to successfully navigate the turbulence of the Arab Spring wave. This was because Morocco’s popular monarch, King Mohammed VI, had immediately directed political reforms that included a new constitution and devolution of greater powers to the elected Parliament. In fact, in subsequent general elections in 2011 – which this author had the privilege to cover for this newspaper – the moderate Islamist PJD party came to power for the first time in Morocco’s history.

It’s on the basis of such democratic foundations that Morocco has been able to emerge as the most competitive economy in north Africa. Aiding this economic potential are Moroccan government policies which have ensured competitive costs for exports – approximately $595/container – and low tax rates – taxes paid by companies represent only 49% of their profits. Plus, initiatives like the Casablanca Finance City aim to position Morocco as a regional financial hub and a premier gateway into African markets.

On top of all this, Morocco has strong ties with sister Francophone African nations in the Sahara and Sahel regions. Taken together, with India seeking to boost its own economic growth through better ties with Africa – as revealed by finance minister Arun Jaitley – it simply cannot ignore Morocco. New Delhi and Rabat enhancing bilateral economic cooperation makes perfect sense.

http://blogs.timesofindia.indiatimes.com/talkingturkey/african-dividend-india-morocco-mou-to-boost-bilateral-trade-is-welcome/

Source: Times of India, 

How has the offshoring sector evolved in recent years, and what are Morocco’s main advantages?

Youssef Chraibi, President, Moroccan Association for Customer Relations.

Interview:

Turnover in the offshoring sector was Dh7.3bn (€794.2m) in 2013 and should reach Dh8bn (€870.4m) for 2014, representing as much revenue as the aeronautics sector and supporting as many jobs as the auto industry. It is the sixth-most-important sector in terms of inflow of foreign currency. The sector’s annual average growth was 20% over the last 10 years, progressing at a very steady rhythm, and today the sector provides jobs for 65,000 people. Revenues and employment creation are correlated in this sector, which in the past five years has represented 5% of GDP growth and created an average of 5000 net jobs a year.

Read more

Source: Oxford Businessgroup

Speciale VN Rapporteur bevestigt, Plan Vert Maroc werpt zijn vruchten af.

Plan Vert, het ambitieuze programma voor de ontwikkeling van de landbouwsector in Marokko, werpt zijn vruchten af.

Marokko lanceerde Plan Vert Maroc in 2008, met de ambitie om de sociaal-economische ontwikkeling te bevorderen door middel van de landbouw. Plan Vert heeft twee belangrijke pijlers: het maximaliseren van de productie van de moderne grootschalige bedrijven door het bevorderen van agribusiness en investeringen, en het verminderen van armoede en honger door het ondersteunen van kleinschalige boeren in marginale gebieden.

VeldenMarokko

Landbouw is goed voor 15% van het BNP van Marokko, maar is nog belangrijker voor het scheppen van banen. Tot 40% van de bevolking werkt in de sector.

De cijfers voor grootschalige productie zijn indrukwekkend. Sinds 2008 is ten minste 150 miljard dirhams  (£ 10 miljard) geïnvesteerd in ongeveer 700 “één pijler” projecten zoals de mechanisatie, irrigatie en het gebruik van kunstmest.

Verschillende banken en internationale organisaties hebben geïnvesteerd – met inbegrip van de African Development Bank, die heeft toegezegd $ 132m (£ 86m) om de PVM te ondersteunen – en particuliere agrarische investeringsbedrijven willen ook profiteren van Marokko’s potentieel om groenten en fruit te exporteren naar Europa .

De VN-Voedsel- en Landbouworganisatie (FAO) schat dat de agrarische sector is gegroeid met ongeveer 7% per jaar sinds 2008. De export is gestegen met 34%, 11% meer landbouwgrond is nu in gebruik, en ambitieuze doelstellingen zijn al behaald zoals bijvoorbeeld het verhogen van de productie van rood vlees   tot 500.000 ton per jaar in 2020.

Lees het gehele artikel hier

Fitch Ratings Confirms Morocco’s Stable Economic Outlook

Morocco’s rating balances weak structural indicators (including development and governance) with macro stability and our projection that gradual consolidation of twin deficits will support public and external debt dynamics.

fitch_rating

Fitch Ratings confirms Morocco’s Investment Grade with stable outlook The international rating agency “Fitch Ratings” confirmed recently the rating level “Investment Grade” attributed to Morocco with a stable outlook.

According to a statement on Tuesday by the economy and finance ministry, foreign currency debt and local currency debt are granted, respectively, ‘BBB-‘ and ‘BBB’ rates. The rate”F3″ of the short-term debt in foreign currency and the ‘BBB’ sovereign rating were also confirmed.

According to Fitch Ratings, the confirmation of this rating level reflects the country’s macroeconomic stability in an unstable international and regional environment and the resilience of GDP growth, despite a drop in the foreign demand of Europe, Morocco’s top economic partner, said the statement, adding, however, that the Kingdom’s social indicators are overall weaker that peer countries.

Regarding the outlook, the agency forecasts a decrease in budget deficit, on the one hand, due to the decrease in subsidy expense and control of current expenditure, and in the current account deficit on the other hand, thanks to the consolidation of public finances, acceleration of exports by new industrial sectors and improvement of the overall context.

source: Ministry of Economy and Finance Morocco

Morocco Ranks North Africa’s Largest Insurance Market

Rabat – Moody’s International Cabinet’s latest report on insurance ranked Morocco as North Africa’s largest insurance market.

In 2013, Morocco’s insurance sector was Africa’s second largest market after South Africa, with regard to issued premiums.

Morocco also ranked the Arab World’s top market concerning penetration rate in 2013, according to Le Matin newspaper.

Between 2012 and 2013, the insurance sector recorded an average growth of 2.7 percent according to La Fédération Marocaine des Sociétés d’Assurance et de Réassurance (FMSAR). The sector’s growth was mainly driven by increases in real estate loans.

In 2014, issued premiums in the insurance sector stood at MAD 28.4 billion, having recorded an increase of 6.4 percent in one year, according to la Direction des Assurances et de la Prévoyance Sociale.

Penetration rate also increased from 3.09 percent in 2013 to 3.14 percent in 2014. Life insurance registered a growth of MAD 9.4 billion, with an increase of 9.3 percent in one year.

Non-life insurance annual growth stood at 4.9 percent with total revenues reaching MAD 19 billion.

source: moroccoworldnews