26/10/2018
Investment potential of the Kingdom of Morocco
(based on the materials of the e-site of the Russian trade Mission in Rabat and electronic media).
In terms of trade and investment, the influence of the former metropolis, the French Republic, remains stable. Business from France is represented here most widely, taking into account both historical ties (including linguistic identity) and close geographical location, simplifying management and technological logistics. France and Spain, Morocco's main trading partners, are also the largest investors in the Kingdom's economy. They account for about 60 per cent of all investment in the Moroccan economy.
Other major investors are the Gulf countries (primarily the UAE and Saudi Arabia, as well as Kuwait) – in total, they account for about 25% of investments in the Moroccan economy.
In addition, companies from Switzerland, the UK and a number of other countries are investing in the Moroccan economy. In 2017, Morocco together attracted more than $ 2.5 billion. The United States as an investment, which allowed the Kingdom to take 1st place in the ranking of the most attractive countries of the African continent for foreign investment, ahead of Egypt, South Africa, Nigeria, Tunisia, etc.
At the same time, the activation of the multi-format economic relations between Morocco and Russia, which began in March 2016 with the visit of King Mohammed VI to Moscow, continues. In this regard, we should note the official visit of the Prime Minister of the Russian Federation Dmitry Medvedev to Morocco in October 2017 for talks with the head of the Moroccan Cabinet of Ministers S. Otmani. During the event, which was accompanied by the organization of the Russian-Moroccan business forum, 11 agreements on cooperation in various fields were signed. The recent regular meeting of the intergovernmental Commission in Morocco has confirmed this trend towards the intensification of economic relations by the number of participants and signed agreements.
Deserves attention also the affords of the Moroccan authorities to develop partnership relations with China. In November 2017, during the visit Of the Minister of foreign Affairs and international cooperation of the Kingdom of Morocco N. Burits in Beijing signed a Memorandum of intent to join the Kingdom to the initiative "silk road". In response, in December 2017, a large – scale event was held in Casablanca-the commercial salon "China Trade Week", organized by Chinese entrepreneurs and investors, designed to demonstrate the capabilities of Chinese business in Morocco.
Among the most significant and promising Moroccan-Chinese projects is the creation of an industrial platform in the suburbs of Tangier – "Tanger Tech."at which it is planned to place production facilities of at least two hundred enterprises from China and other countries with the creation of up to 100 thousand jobs. The cost of the project is estimated at $ 11 billion. USA.
In General, the most striking examples of successful investments in the Moroccan economy are the development of the automotive and aviation industries, which have become drivers of the growth of the entire Moroccan economy in recent years. The enterprises of the auto and aviation industry are concentrated in several clusters, the largest of which are: - free industrial zone of Tangier, where the Renault Tanger plant has been operating since 2012; - automotive cluster of Casablanca, where the Somaca enterprise is located, on which some Renault models are assembled; − free industrial zone of G. Kenitra, where the producers of auto and airline components and components are concentrated; - Technopark "Nouaceur", where many enterprises of the aviation industry are located; − free industrial zone Nador West med, where it is planned to create a fuel cluster by 2022. In 2016 began construction of a plant of the French PSA group in the city of Kenitra. Production of cars at this enterprise will begin in 2019. The production capacity of the plant is 200 thousand cars per year (at the initial stage it is planned to produce about 90 thousand cars). Investments in the project will amount to about 560 million euros. This will be the third factory in Morocco (after the factories "Renault Tanger" and "Somaca").
A number of private Moroccan companies in the construction sector (cement production), which are developing their production activities in African countries, as well as the Moroccan telecommunications operator "Mark Telecom" and a number of private banks, whose international activities are mainly focused on the African continent, are interested in expanding foreign investment. The only major Moroccan company actively developing investment activities outside Africa is the Royal phosphate office (Office chérifien des phosphates, OCP Group). "OCP Group" is interested in participation in foreign investment projects for the development of production in key markets of phosphorite ore and phosphorus-containing products (Europe, India, Brazil). In addition, the largest Moroccan banks Attijari Wafa Bank and BMCE have an extensive network of branches in Europe.
Since 2009, the Kingdom of Morocco has been implementing the national strategy for innovative development of Morocco (Stratégie Maroc Innovation), which aims to: − develop the competitiveness of Moroccan enterprises on the basis of innovation; − increase technological production; − develop the capacity of Moroccan universities in the field of R & d; − attract R & d specialists from abroad to participate in national research projects;-develop a culture of innovation and entrepreneurship. The national Committee for industrial research innovation (Comité National de l'innovation et de la Recherche Industrelle) and the Moroccan innovation centre (Le Centre Marocain de l'innovation) are responsible for the implementation of public-private partnerships to support innovation.
State financial support for innovative companies is carried out through a Programme of support to technological R & d Objective of the programme is to support high-tech R & d in the first place, government research labs and consortia, as well as enterprises with state participation/control.
The size of the support Fund under this program: up to 50% of the total cost of the project, no more than 2 million Moroccan dirhams (200 thousand dollars). USA.)
Funds to support innovation "Intilak" (INTILAK), "Tatvir" (TATWIR) and “PTR” Fund "Intilak" subsidizes innovative "start-UPS" in the field of industry and information technology in the amount of up to 90% of project cost (up to 1 million Moroccan dirhams ). The amount of financial support for R & d for the development of existing business in the field of industry and information technology by the Tatvir Foundation is up to 50% of the project cost (up to 4 million Moroccan dirhams). The PTR Fund has similar goals to support existing enterprises that have decided to develop innovative production. It can cover up to 75% of the costs of the enterprise, but not more than 100 thousand dirhams.
One of Morocco's main non-governmental organizations representing national exporting companies is the Moroccan Association of exporters (Association Marocaine des Exportateurs, ASMEX). ASMEX manages the state Fund for support of export activities of small and medium-sized enterprises. The amount of financial assistance is up to 100 thousand Moroccan dirhams (about 11 thousand dollars). For one-time support of companies at the initial stage of activity (start-ups) and up to 200 thousand Moroccan dirhams per year (about 22 thousand dollars). US) to support the Moroccan organizations already working in the field of foreign trade.
The prospects for trade, economic and investment cooperation between Russia and Morocco are primarily related to the development of the Kingdom's electric power industry, infrastructure and hydrotechnical construction. Cooperation on Morocco's gas sector development programme (construction of a liquefied natural gas (LNG) terminal, a gas pipeline network and mixed-cycle power plants, fuel supply), as well as the development of supplies of Russian grain, Russian engineering products, including machinery and equipment for agriculture and the transport industry, are of great importance. Certain developments with the prospect of further development of cooperation are available in such high-tech industries as pharmaceuticals, medical equipment supply, geological exploration, etc. Also an important factor in the arrival of new investors in Morocco, in t h from Russia is the prospect of an early large-scale privatization of state-owned enterprises.
Investment activities in Morocco are governed by the" Investment code " (Act No. 18-95 of 8 November 1995), other legislative acts of the Kingdom, including international treaties of Morocco, as well as special investment agreements. In accordance with the said law, Morocco has established a Government investment Commission (PKI).
The investment Department of the Ministry of industry, trade, investment and digital economy of the Kingdom of Morocco acts as the Secretariat of the PCI.
The implementation of investment projects can be carried out in Morocco in two ways: - on the basis of special agreements with the state taking over certain expenses (purchase of land, creation of external infrastructure, professional training) and with the simultaneous provision of tax, customs and other benefits to the investor; - without the participation of the state in investment projects, when the investor in accordance with the Investment code and other regulations of the state at its own expense must settle all administrative, customs, tax and other formalities for the project.
Depending on the volume of investments, the following state organizations and regional structures are authorized to review investment projects: - the amount of investments is equal to or exceeds 200 million dirhams (19 million euros) - in this case, investment projects are considered by the Investment Department of the Ministry of industry, trade, investment and digital economy of the Kingdom of Morocco, which prepares its proposals for approval of projects at a meeting of the government investment Commission chaired by the Prime Minister; - the amount of investment is less than 200 million dirhams (about 20 million euros) - reception of investors, their advice, provision of information and assistance are authorized to carry out regional investment centers (RIC) established in each province. The main objectives of the Regional investment centres are to implement a set of measures to stimulate foreign investment in Morocco, as well as to assist in the establishment of an enterprise and to assist the investor in the implementation of the project.
Morocco's investment policy is mainly aimed at attracting foreign investment to the country. To this end, the Moroccan investment development Agency (Agency Marocaine de développement des investissements, AMDI, transformed in August 2017 into the Moroccan investment and export development Agency (Agency Marocaine de développement des investments et exports, AMDIE), performs the following main functions: − develops a system for attracting investment; - identifies sectors in need of investment; - informs potential partners about the investment legislation of Morocco and the available opportunities for investment; − provides free consulting services to potential investors; − coordinates contacts of investors with local partners and government authorities; − takes measures to ensure the most favorable investment climate in accordance with the legislation. In its activities, the Agency relies on a network of 6 foreign offices. They operate in the countries that are the main investment partners of Morocco: France, Spain, UAE, USA, Germany, Italy. In addition, most of Morocco's provinces have regional investment development centres to promote investment opportunities in their region.
Financial state support to foreign and national investors is provided through the following state investment funds:
Investment development Fund (Fonds de promotion de l'investissement)
The condition for the use of the Fund is the signing of an investment agreement with the state body acting as the curator of the project. It must be pre-approved by the interdepartmental Investment Commission (Commission des Investments). Criteria for the selection of investors − - the size of the proposed investment must be at least 200 million Moroccan dirhams (about $ 20 million). USA); − the creation of at least 250 jobs; − transferring technology; − compliance with the requirements of environmental protection.
At the expense of the Fund can be financed up to 20% of the cost of land acquisition for construction and up to 5% of the cost of development of the necessary infrastructure. In addition, the state subsidizes up to 20% of the costs associated with the training of potential employees. The investor organization is also exempt from customs import duties and import VAT (TVA à l'importation) on technical equipment for a period of 36 months from the date of commencement of the company's activities in Morocco/the date of signing the agreement.
Fund them. Hassan II (funds Hassan II) Funds are provided under an agreement signed between the investor and the management of the Fund. Criteria for the selection of investors − - the amount of the proposed investment is equal to or greater than 10 million Moroccan dirhams (approximately 1 million us dollars), not less than 5 million dirhams (500 thousand us dollars). (USD) from this amount should be used for the purchase and installation of equipment; - investment projects are financed in the following sectors of industry: automotive and aviation industry, production of auto and airline components, production of electrical equipment, nano - and biotechnology. The Hassan II Fund finances up to 30% of the cost of land acquisition for the construction of the necessary facilities, as well as up to 15% of the costs associated with the acquisition and installation of the necessary technological equipment.
The national Committee for innovation (Comité National de l'innovation) is responsible for the development of public-private partnerships in support of innovation. The functions of initial orientation and support of innovative enterprises are entrusted to the independent establishment of the Moroccan centre for innovation (Centre Marocain de l'innovation).
State financial support for innovative SMEs is provided through the innovation support Funds Intilak (INTILAK) and Tatvir (TATWIR). The Intilac Foundation subsidizes innovative start-UPS in the field of industry and information technology up to 90 per cent of the project cost (up to 1 million Moroccan dirhams).
The amount of financial support for R & d in the field of industry and information technology by the Tatvir Foundation is up to 50% of the project cost (up to 4 million Moroccan dirhams).
To support the integration of SMEs into the aviation industry, the aérofund Fund (in the image and likeness of a similar Fund in France) was established in 2016, with a capital of € 60 million.
The programme of the national strategy for innovative development of Morocco is also being implemented through the establishment of a network of innovation clusters (specialized R & d zones) in the field of information technology, electronics and microelectronics, as well as in the processing and transformation of fishery products.
Attachement 1.
Main investment platforms in Marocco - institutional investors:
FInancial companies - Attijariwafa Bank, BCP, BMCE, NATEXIS, CIC,
Asset Management Companies (CDG Capital, BMCE Capital), and insurance companies (CNIA, Wafa Assurance, AXA) o International Development Finance Instiuttions such as EIB, PROPARCO, IFC, FMO and others o Private holding companies (Mutandis, SNI) o Asset managers like Caisses de dépôt (CDC) o Other financial institutions such as retirement funds (CIMR, CMR) and mutual insurance groups (MAMDA MCMA,CNOPS), Funds of Funds and investment companies (Cf. Annex I)
Attachment 2.
Hi-tech clusters:
Numeric Cluster Morocco (Casablanca) ) • Microelectronics Cluster (Rabat) • Electronics Cluster - Mechatronics - Mechanical (Mohammedia) • Maritime Cluster (Tan Tan)
Attachment 3.
Investment management companies and their funds:
ABRAAJ CAPITAL: Al Kantara Morocco Al Kantara LP
ALMAMED: Massinissa Massinissa Lux
ATLAMED: AM Invest Morocco
ATTIJARI INVEST: Agram Invest Igrane
AUREOS CAPITAL: Aureos Africa Fund Africa Health Fund
AZUR PARTNERS: NEBETOU
CAPITAL INVEST: Capital Morocco
Capital North: Africa Venture Fund
CDG CAPITAL PRIVATE EQUITY: Accès Capital Atlantique, Fonds Sindibad Cap Mezzanine
CFG CAPITAL: CFG Développement
DAYAM CAPITAL: RISQUE Dayam SA
FIROGEST FIRO: Invest INNOV
HOLDAGRO SA: Targa
MAROC INVEST: MPEF I et Afric Invest I
MPEF II et Afric Invest II
MITC: Maroc Numeric Fund
PRIVATE EQUITY INITIATIVES: PME Croissance
RIVA Y GARCIA: Mediterrania
UPLINE INVESTMENTS: Upline Technologies Upline Investment Fund, Fond Moussahama I et II OCP Innovation Fund for Agriculture (OIFFA)
VALORIS: VIVERIS ISTITHMAR Altermed Maghre
