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doing business in

Leading research, exploration and


exploitation of hydrocarbons and mines.

Promoting the oil, gas and


mineral resources of Morocco.

Developing meaningful partnerships


with international investors.

Strengthening links with the


world market.

Contributing to economic and


environmentally sustainable development.
Morocco
Contents
doing business in 2012

Top 7 Reasons 4 Top 80 companies (Center Gatefold)38


Country Overview 6 Banking Penetration 40
AMDI Our services 8 Banking 42
Investing in Morocco 10 Capital Markets 48
Economic Outlook 12 Insurance 50
Starting a Business 14 Transport 52
Taxation 18 Infrastructure 56
Offshoring 20 Mining 58
Aeronautics 22 Agriculture 60
Automotive 24 Fisheries 62
Energy 26 Pharmaceuticals 64
Information Technology 30 Consumer Behavior 66
Telecoms 32 Tourism 68
Textiles 34 Practical Information 72
Corporate Finance 37 Sectors qualifying for Moroccan government incentives.

Dear reader:
Since you have this publication in hand, the chances Bombardier, and Li & Fung, just to mention a few,
are that you and your company are considering have chosen Morocco.
Morocco as your next investment destination.
Last but not least, my entire team and myself are at
Believe me, Morocco offers numerous reasons to your disposal to help you prepare your Moroccan
invest, and we provide some overview of these in entry. Please turn to pages 8 and 9.
the following pages. Morocco is politically stable,
We look forward to greeting you in Morocco.
has an excellent growth pedigree, enlightened
governance, extraordinary infrastructure, and offers
a range of incentives for foreign investors, namely in ihri
Fassi F
government-designated priority areas. Ahmed
With such strengths, it will come as no surprise that Ahmed Fassi Fihri, Director,
leading companies such as Renault, CapGemini, AMDI, Morocco Investment Development Agency
Top 7 reasons
to invest in Morocco
Stable political environment
Morocco is the safest and most stable country in the Middle East and North Africa
region for investors. Morocco is a democratic and social constitutional monarchy. Since

1
coming to the throne in 1999, King Mohamed VI has pursued many democratic reforms.
The King appoints the prime minister who then appoints a cabinet of 22 ministers. The
Parliament consists of the Chamber of Counselors (the upper house) and the Chamber
of Representatives (the lower house). The 270 counselors are elected indirectly by local
councils, professional organizations, and labor syndicates to serve nine-year terms. One-
third of the upper house is elected every three years. The 395 representatives are elected
by popular vote to serve five-year terms.

The Occident of the Orient


Strategically positioned on both the Atlantic Ocean and the Mediterranean Sea, less
than 14 kilometers from Europe, Morocco is a regional center for trade, manufacturing,

2
warehousing, redistribution, sales, call centers, and an array of IT services reaching
Europe, Africa, the Middle East, and the Americas. It is ideally positioned for shipping
goods between the Americas, Africa and the Mediterranean. The massive harbor at
Tangier provides much of the infrastructure for this. In addition, Morocco is party to trade
agreements that allow it to reach a billion consumers duty-free. Morocco has a free
market economy and one of the regions lowest corruption levels. Due to its international
nature, Morocco retains Western customs in food, drink and clothing. French language
and culture is commonplace and the use of English is being widely adopted.

Strong growth
Moroccos economy boasted an average growth rate of 5.1% between 2001 and 2010

3
despite the international financial and economic crisis. GDP grew 4.9% in 2009, the
largest increase across the Mediterranean region. During the same period, inflation
increased less than 2%, the lowest rate in the region. Overall treasury debt declined
from 73% to 50% of GDP between 2000 and 2010. Strong domestic demand and public
investment have contributed to the countrys growth. Household consumption grew by an
average 8% per year between 2004 and 2010 to $52 billion (MAD 442 billion), while public
investment nearly tripled during the same period to reach $20 billion (MAD 167 billion).

4
Proven returns on investment
Morocco has a consistent track record in gathering Foreign Direct Investment (FDI).
Among the 22 countries of North and Western Africa, it is one of the largest recipients of
foreign direct investment with more than $1.2 billion of inward FDI in 2010, as tracked by
the World Bank.

4 Doing Business in Morocco | 2012 Edition


Top 7 Reasons

Enlightened government support


The Moroccan government stimulates or directs economic activity in strategic areas,
including aeronautics, automotive, offshoring and tourism. In addition, incentives provide

5
selected sectors (mining, export industries, tourism, real estate, handicrafts and maritime)
with partial or total exemptions from VAT, income tax and import duties. Incentives are
also available to businesses that invest in one of Moroccos Free Trade Zones (FTZs).
The Tangier FTZ offers incentives to investors who set up businesses on undeveloped
land, including exemptions from duties and taxes associated with the acquisition of land,
license and urban taxes for 15 years, VAT on all exported goods, and corporate taxes
for five years, with a reduced 8.75% corporate tax thereafter.

Attractive business environment


Moroccos domestic market of 32 million inhabitants is the second largest in the
Maghreb. It also has the best road, rail and port network in North Africa. It has a
simplified tax code with tax incentives for foreign businesses and a simplified customs

6
schedule with two flat-rate tariffs on imported goods brought into Morocco to expand
a business. The country has reformed its labor laws and clarified employment rules
and the government is increasing funding for vocational training. Since the 1980s, the
government has privatized 114 formerly state-run enterprises. Due to the Free Trade
Agreement and WTO accession process, Morocco is a secure investment with legal
safeguards in the form of sectoral codes that regulate business sectors and are
applied equally to domestic and foreign investors.

Free trade agreements


In 2004, Morocco became the second Arab nation (after Jordan in 2000) to enter into
a Free Trade Agreement with the US. In 2005, Morocco joined the EU Neighborhood

7
Association for trade, and in 2008 was the first Arab country in the MENA region to be
granted the coveted Advanced Status as a full trading partner. As a result, Morocco is
the only country in North Africa to have completely free and open trade rights with the
US and all the countries of the EU. Morocco has also entered into bilateral free trade
agreements with most of the other countries of the MENA region and is now engaged
in obtaining agreements with the rest of Africa, as well as numerous countries in the
Americas, Asia, and the Pacific. As a result, Morocco today has more free and open trade
agreements than any other nation in the MENA region and Africa.

2012 Edition | Doing Business in Morocco 5


Enlightened monarchy
T he Kingdom of Morocco is the westernmost country
in North Africa. With a population of about 32 million
inhabitants and an area of 710,850 square kilometers,
Tourism and workers remittances have played a critical
role since the Kingdoms independence. The production
of textiles, clothing and leather goods is part of a growing
Morocco is part of the Maghreb region, which also manufacturing sector, which is also seeing higher
includes Tunisia, Algeria, Mauritania, and Libya, with added-value sectors having good growth: automotive,
which it shares cultural, historical and linguistic ties. electronics and aeronautics to name a few.

Morocco is a constitutional monarchy with an


elected parliament. Executive power is exercised by Tangier Ttouan
Nador
the government and King Mohamed VI. Legislative Melilla
power is vested in both the government and the Kenitra Oujda
RABAT Fez
two chambers of parliament, the Assembly of
NORTH Casablanca Mekns
Representatives and the Assembly of Councillors.
ATLANTIC Bou
The king can also issue decrees called dahirs having Arfa
OCEAN Safi
the force of law. The political capital is Rabat, but the
largest city is Casablanca. Other main cities include Marrakech
Marrakech, Tetouan, Tangier, Sal, Fez, Agadir, Ouarzazate
Meknes, Oujda, Kenitra and Nador. Agadir

In Africa, Morocco constitutes the fifth largest


economy, even though it is only ranked 9th in terms Algeria
of population. Tarfaya
0 100 200km
Moroccos economy is free-market. Government 0 100 200mi

reforms and steady yearly growth in the region of Northern portion of Morocco
4% to 5% since 2000 have helped to diversify and
strengthen the Moroccan economic base. The Strong legs to stand on
major resources of the Moroccan economy are Percentage of GDP by sector of the economy, 2009
financial services, real estate and tourism, followed Electricity, gas, water
by agriculture and manufacturing. Economic growth 3% Mining
drivers are diversified, with new service and industrial 3%
Other services
poles in cities such as Casablanca and Tangier. 5%

Construction
Industry and mining contribute about one-third of 7% Finance, real
the annual GDP. Construction and manufacturing estate, business
provide about 23%. The industries that recorded the Transport, storage
services
20%
highest growth are tourism, telecoms, information communication
technology and textiles. Morocco is the worlds third- 7%
largest producer of phosphorus (after China and
the US). Morocco is the worlds biggest exporter of Agriculture and
Public
fishing
phosphates, whether as raw material or processed as admin., health,
16%
fertilizer. education
9% Retail
trade, tourism
The services sector accounts for just over half of 14%
Manufacturing
GDP. Morocco, however, still depends heavily on 16%
agriculture, which accounts for 14% of GDP but
fully 40% to 45% of employment. Sales of fish and GDP 2010: $90.8 billion
seafood are important as well.
Source: African Development Bank, World Bank

6 Doing Business in Morocco | 2012 Edition


Country Overview

North Africa comparative economies


Morocco
Population: 32.3 Algeria
GDP 2010: 90.8 Population: 35.4
GDP per cap. 2010: 2,796 GDP 2010: 162 Libya
GDP growth: 4.8% GDP per cap. 2010: 4,567 Population: 6.5
FDI 2010: 1.2 GDP growth: 3.6% GDP 2010: 62
FDI 2010: 2.3 GDP per cap. 2010: 9,957
GDP growth: 17.77%
Tunisia FDI 2010: n.a.
CO
OC

Algeria
Libya
OR

Egypt
M

Tunisia
Population: 10.5
GDP 2010: 44.3
GDP per cap. 2010: 4,199
GDP growth: 1.3%
Mauritania FDI 2010: 1.4 Egypt
Mali Population: 84.5
Niger GDP 2010: 219
GDP per cap. 2010: 2,698
Chad GDP growth: 1%
FDI 2010: 6.4

Benin
Nigeria
Ghana
Sudan
Mauritania Cameroon
Population : 3.4
GDP: 3.6
GDP per capita: 1,044
GDP growth: 5.2%
FDI: 0.014
D.R. Congo

Tanzania

Population in Millions Angola


GDP 2010 $Billions (Libya 2009) Zambia
GDP growth 2010-2011
GDP per capita 2010 in US$ (Libya 2009)
FDI net inflows 2010 $Billions

Source: World Bank

2012 Edition | Doing Business in Morocco 7


Opening doors
for investors
The Moroccan Investment Development Agency
(AMDI) was completely revamped in 2009 to
facilitate foreign investment into Morocco, and to
launch outbound marketing using the agencys
seven foreign bureaus.

A MDIs purpose is two-fold. It


provides advice and orientation
for foreign investors interested
AMDI is the first place to go for information about investing in Morocco.

in Moroccan opportunities, and renewable energy, offshoring and outsourcing (that


promotes Moroccan interests is, call centers and back office operations), agro-
Ahmed Fassi Fihri
abroad to identify and convince processing and textiles.
Acting Director
foreign investors to start businesses
in Morocco. All AMDI services are free. AMDI publications cover several aspects of doing
business in Morocco. These are available free for
The agency endeavours to provide the best digital download at the Invest in Morocco website
environment for the successful development of new (www.invest.gov.ma), which is available in French and
businesses. To do this, it provides investors with key English. Choose Our Services in the top menu and
information about: Publications on the drop-down menu.
Specific investment opportunities
Regulatory changes The 36 publications available for download cover the
Administrative procedures legal and fiscal aspects of doing business in Morocco,
Local partners the investment incentives and taxes, among other
matters. Other publications analyze various economic
AMDI is organized into three divisions. The investment sectors. Most publications are available in English and
division does the ground work for foreign investors French, and some are translated into Spanish or Arabic.
who are prepared to set up a business in Morocco.
It can assist them with administrative procedures, as Linked to others
well as market research or financing. The business AMDI works closely with other government agencies,
development division promotes Morocco outside the such as those that operate in tourism, solar and
country, and a third division offers support services. renewable energy, agriculture and the Tanger Med
Free Zone special development agency. These close
Different specialities ties can simplify and accelerate matters for investors.
Agency specialists work in several key areas the
government has identified for priority development. Another group of AMDI partners are the 16 Regional
Among these are experts in automotive, aeronautics, Investment Centers (CRI for their French abbreviation).

Ten steps to setting up a company in Morocco


Step 1 Step 2 Step 3 Step 4 Step 5
Declarations
Reservation Articles of Application Blocking
Subscription
of a Name Incorporation Form of Capital
and Payment
Source: AMDI

8 Doing Business in Morocco | 2012 Edition


AMDI Our services

automotive hub is in Tangier. Renewable energies


are more dispersed but the Region de lOrient (on the
Mediterranean Sea) has developed a strong position.

One-stop shop
AMDI can provide answers for foreign investors on
several matters, such as financing. AMDI does not
provide direct financing itself, but it has privileged
access to many of the top actors in the Moroccan
financial sector. This includes traditional retail
and investment banks, private equity players,
the Casablanca Stock Exchange and several
government-backed programs for which companies
with Moroccan partners may qualify.

Regarding setting up a company, AMDI has outlined


the ten steps required (see chart below). When it
comes to government aid or incentives, AMDI can
help identify assistance that may be available for a
Navigate the Moroccan territory specific type of project.
How AMDI can help foreign investors
It can also provide information about government
Upstream Midstream Downstream assistance for training and continuing education.
This includes both upfront and ongoing training
AMDI prepares AMDI provides AMDI does for the six sectors that Morocco has identified as
background and various services: follow-up work:
Metiers Nationaux (priority professions) offshoring,
sales materials for * Technical * Company visits
automotive, aeronautics and aerospace, electronics,
prospection assistance * Statistical
* Preparation of questionnaires
textiles and leather goods, and agro-processing.
AMDI canvases contracts for * Analysis of
dierent areas for government further The agency can also provide detailed information
potential investors funding requirements about the various free trade or special economic
* Preparation of zones that Morocco has developed throughout the
contracts for tax country. In addition, AMDI provides regular updates
benefits on the cost of key manufacturing inputs such as labor
costs and utility rates. This information is available on
Foreign AMDI main oce AMDI main oce their website under the Invest in Morocco tab.
representative Rabat Rabat
oces (7 oces Lastly, via its AfterCare branch, AMDI provides follow-
worldwide) Source: AMDI/Invest In Morocco
up assistance to foreign investors after their setup in
Morocco. This illustrates AMDIs commitment to long-
These centers develop inbound foreign investment term relationships - something that helps explain the
for specific regions. high rate of renewal investments.

Some regional specialities have already taken shape. For more information:
For example, the aeronautics cluster is located Moroccan Investment Development Agency (AMDI)
near Casablanca in the town of Nouaceur. The www.invest.gov.ma

Step 6 Step 7 Step 8 Step 9 Step 10


Trading Tax Register of Social Ocial
Constituent
and Fiscal ID Commerce Security Gazette
Acts Deposit
Subscriptions Registration Aliation Publications

2012 Edition | Doing Business in Morocco 9


A tale of two
investors
For AMDI, all investors are created equal. Here
is how AMDI helped a Spanish manufacturer
(Sage Energia y Produccion) and a start-up
(Elephant Vert) with their entries into Morocco.

A s Ahmed Fassi-Fihri, the director of AMDI


Invest in Morocco, can testify, foreign investors
come in all sizes and shapes: For Sage Energia y
AMDI helps foreign investors of any size or shape enter Morocco.

Produccion (SEP), Morocco was only one option as a cross between a biotech company and a micro-
on a wide palette, he explains. While for Elephant financier.
Vert, a Swiss start-up, we were the natural choice.
But no matter what the investors needs, we try to Despite our unusual profile we mean serious
help them out. business in Morocco, pursues Couasnet. We
intend to invest about 25 million in Morocco
Sebastien Couasnet, the country representative from now until 2015. Most of that will be for a
of Elephant Vert in Morocco, says AMDIs level of manufacturing facility in Meknes, located within
assistance was unexpected. I was very pleasantly one of the countrys agropoles (see pages 60 - 61),
surprised, says Couasnet. I had been expecting and then two others in Berkane and Souss. Our
administrative bureaucracy and slowness, but no, plants will employ 500 people and produce both
not at all. It was quite the opposite. I was assisted bio-fertilizers and bio-pesticides. Elephant Vert will
in a consistent and helpful way for more than two also have an administrative office in Rabat, close
months. to the Ministry of Agriculture, and a research and
development center.
Elephant Vert is not a typical foreign investor.
Founded in Geneva in 2010, the company is funded One thing that Couasnet found most useful
by the Antenna Technologies Foundation, a non-profit from AMDI was the profuse advice on legal and
organization that promotes innovative agricultural and administrative procedures, and more importantly,
financial solutions. Elephant Vert could be described help in understanding financing options.

Flocking to Morocco
Selected recent foreign investments into Morocco
Company Country of origin Amount* Nature Location
Tekfen Turkey 600 Mining-phosphates Pipeline
RJ Corp Ltd. India 100 Consumer goods (soft drinks) Multi-city
Meridionale Impianti SpA Italy 20 Electricity production (PV panels) n.a.
Delphi Automotive Inc. USA n.a. Automotive components (plant extensions) Tangier
Maphar SA France 27 Pharmaceuticals (logistics platform) Casablanca
Li & Fung Ltd. Hong Kong/China 300 Textiles, clothing n.a.
Logica Inc. UK n.a. Offshoring, software, cloud services Rabat (Technopolis)
*Figures in $M Source: AMDI/Invest in Morocco

10 Doing Business in Morocco | 2012 Edition


Investing in Morocco

perhaps 50 employees, explains SEPs Rodriguez.


But we fully expect to grow over the years and
perhaps then use Morocco as a regional platform for
expansion to Maghreb and West African countries.

Low-cost but skilled labor was a main factor in


choosing Morocco. Accessing trained personnel, or
receiving training assistance from the government,
was very important for us, says Rodriguez. Our
operation here will carry out industrial design,
namely for automotive and aeronautics applications,
and we need qualified engineers and programmers
to do this work.

Another important attraction was domestic demand.


SEPs Moroccan subsidiary IPEM can live from its
domestic contracts as well as export contracts. IPEM
expects that up to 75% of its staff will be Moroccan
AMDI gave me very clear explanations on the at first, and even more later on.
administrative processes, and my counterpart at
AMDI, Nejma, was very consistent in her follow-up to SEP and Elephant Vert agree that the stability of the
my queries, explains Couasnet. country is another advantage.

David Rodriguez, general manager of Sage Energia y Economic and political stability, as well as long-
Produccion, backs up this point. For us, the dealings term personal safety were certainly factors for us, in
with AMDI lasted for about ten months in 2011, says addition to Moroccos location, explains Couasnet
Rodriguez. AMDI helped us in four ways. The main of Elephant Vert, adding that location was also a key
way was an explanation of Moroccan legislation and factor for Elephant Vert.
how the Moroccan government
could help my company, especially We did not really give much
in terms of incentives and grants Working with AMDI thought to other Maghreb
(see pages 18-19). countries, Couasnet explains.
was a true pleasure and Morocco was the natural choice.
SEP is a Spanish company unexpectedly so, says Casablanca has very good flight
based in Valladolid, and active connections both to Europe and
in the design and manufacture of Sebastien Couasnet of to other African countries and
industrial processes with various that is important for our future
applications, most notably in Elephant Vert biotech. development.
the automotive, aeronautics,
energy and agriculture sectors. SEPs subsidiary in AMDIs help in explaining financing options be it
Morocco, called IPEM, is to provide these services from the Moroccan government or from other local
and products to clients in the EU and the USA, as sources was another influencing factor for both
well as in the Tangier Free Zones. companies.

SEP also took advantage of AMDI assistance to Both SEP and Elephant Vert took advantage of special
identify local partners and find a suitable location. tax and financing incentives that apply to high-tech
and to agriculture, just two of the six priority areas
For SEP, the natural location was the Tangier Free that the Moroccan government has defined.
Trade Zone, next to the large automotive cluster that
has sprouted around Renaults mammoth plant there. Perhaps the ten-month interaction with AMDI was
Elephant Vert took advantage of the Maroc Vert plan longer than usual, posits SEPs Rodriguez, but it
for agricultural development and its eight agropoles. enabled us to go back and forth between different
investment options, and different incentive packages
Our initial investment will be about 1.5 million with that the government put on the table.

2012 Edition | Doing Business in Morocco 11


Re-structured
for growth
Morocco continues its upward trend. This year
will see challenges from ongoing efforts in the
energy and extractive sectors, but the reforms
that King Mohamed VI initiated after he came to
the throne in 1999 are taking hold.

T he basics of the Moroccan economy remain stable in


spite of the crisis and the country displays a degree
of resilience in the face of external shock, with a growth
in gross domestic product (GDP) of 4.9% in 2009 and The Moroccan economy is becoming less dependent on agriculture.
3.3% in 2010. Nevertheless, the crisis has highlighted
structural weaknesses, in particular in certain export- be confirmed in 2011 (up by 11.5%), driven by strong
oriented sectors such as textiles and clothing. external demand and the major investment program
of the Office Cherifien des Phosphates (OCP) which
The continuation of the macroeconomic and hopes to increase its production capacity in mining,
structural reforms put in place over the past decade, chemicals and fertilizers.
combined with the revival of non-agricultural activities
and demand from Moroccos partners, offer favorable Production of thermal and hydraulic energy rose by
prospects for growth and the economy should expand 34.7% and 16.7% respectively during the first ten
by 4.6% in 2011 and 5.0% in 2012. months of 2010, compared with the same period
in 2009, and contributed to electricity production,
The Moroccan economy has been, traditionally, making up for the drop in imports from Spain and
dependent on the agricultural sector but over the Algeria and the fall in production from the Tahaddart
past decade has embarked upon a diversification of power plant.
its structure. More and more growth comes from the
secondary and tertiary sectors. The international crisis and its debilitating effect on
the economies of Moroccos trading partners had
The main drivers of growth in 2010 were the good a major impact on processing industries, which are
performance of non-agricultural activities and a
revival of the sectors most heavily hit by the crisis Recession-proof Morocco
in 2009. Non-agricultural activities were affected by Evolution of real GDP growth rates since 2002
the 2009 international crisis but recovered in 2010 9%
to reach their pre-crisis level. They recorded an
improvement in added value of 5% and the trend is 7%
expected to continue in 2011, helped by growth rates
in the secondary and tertiary sectors of 5% and 5.6%
5%
respectively.

3%
Extractive activities (notably phosphates) were hard hit
by the crisis in 2009, with a drop in their added value
of 23.8% compared with the previous year. But the 1%

mining sector met expectations in 2010 as demand


2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
picked up, in particular from the US and Brazil, and
recorded growth of 10%. This trend was expected to Source: African Development Bank

12 Doing Business in Morocco | 2012 Edition


Economic Outlook

the good cereals harvest, the control of inflation, a


revival in transfers from Moroccans living abroad,
the availability of consumer credit (up by an annual
rate of 8.7% at the end of October 2010) and steps
to support household purchasing power in the 2010
budget. These include a revision of income tax
rates that came into effect at the beginning of 2010
which lowered the maximum rate to 38% from 40%
and raised the tax threshold from 24,000 Moroccan
dirhams (MAD) to MAD 30,000 ($2,700 to $3,400).
Household consumption, which accounted for an
average 58% of GDP during the period 2005-09,
rose by 4.1% in 2010 and should continue its strong
performance in 2011, with an increase of 5.6%.

Investment benefited from the improvement in


economic activity and the vitality of public and private
investment. Gross fixed capital formation at current
prices (GFCF) progressed by 6.9% in 2010, after
falling back by 0.6% the previous year. Credits for
equipment financing had advanced by 25.8% at the
strongly oriented towards exports and account, end of the first eight months of 2010 compared with
on average, for 16.5% of the total added value of the same period in 2009. Imports of capital goods,
the secondary sector. But the revival in industrial other than aircraft, saw a similar advance with an
activity, which began in 2009, continued in 2010, with annual growth rate of 5.1%. GFCF should maintain
the exception of the textile and clothing sector, in its strong performance in 2011 with growth of 7.4%
particular leather, and aeronautics, which continued over 2010. At the same time its contribution to growth
to show substandard performances. Processing should rise from 2.3% in 2010 to 2.5% in 2011.
industries recorded progress of 3.1% in 2010 and
should continue to grow at a rate of 3.6% in 2011. Fiscal Policy
The budget deficit increased in 2010 due to higher
The international crisis affected the tertiary sector spending. Estimates for 2011 suggest a moderate
only moderately, which managed to maintain its 2009 decline due to lower spending growth which will be
growth rate in spite of a slight drop in tourism. In 2010 it mainly financed by internal resources, unlike the 2010
recorded growth of around 5%, supported by the good deficit which took advantage of favorable financing
performance of the primary and secondary sectors and on the international market.
healthy national and foreign demand. This progress
was expected to continue in 2011 and reach 5.6%. Monetary Policy
Inflation as measured by the variation in the cost of
Tourism benefited in 2010 from the recovery in global living index continued to be very moderate in 2010,
tourism. Arrivals rose by 12% in the first ten months remaining at under 1%. The prices of food and non-
of the year compared with the same period in 2009 food goods rose respectively by 0.4 % and 0.9 %.
with a total of 7.9 million tourists. The number of
overnight stays in classified establishments also
This article was edited from the African
rose by 11.5%, mainly concentrated in the cities of
Development Banks annual publication,
Marrakech, Agadir and Casablanca, which between
African Economic Outlook, 2012 edition.
them accounted for two thirds of the extra overnight
Further information can be found at
stays. Occupancy rates rose by two points during
www.africaneconomicoutlook.org, or by
the first ten months of the year compared with same
contacting the AfDB communications
period in 2009, reaching 45%. Receipts from tourism
department: penelope.depontet@afdb.org
rose by 6.6% over the period.

Internal demand continues to play its role as an Note : The most recent economic forecast for Morocco from the African
engine of growth. It was boosted in particular by Development Bank is expected to be released by June 15, 2012.

2012 Edition | Doing Business in Morocco 13


No Byzantine
complexity
Setting up a company in Morocco is relatively
simple and fast. Morocco also differs from
its neighbors since it enables foreigners to
operate without local partners.

T he creation of a company in
Morocco is easier than in most
of the North Africa and Middle East
region. Two weeks suffice for the Two weeks is all it takes to create a company in Morocco.
Frederic Elbar procedures, whether one does it
Managing Director independently or via one of the For light and flexible structures, this is the preferred
Maghreb Consulting Regional Investment Centers (CRI in legal form. An SARL can have one or more partners
French). The CRIs offer a one-stop- who may be individuals or legal entities, resident or
shop window that manages all the administrative not in Morocco. There is no minimum capital to set
steps for creating the corporate entity. One needs up a SARL.
to contact the regional CRI for the area where one
wishes to set up. At the more complex end of the scale is
incorporation, that is setting up a company with
Unlike other Maghreb countries, in Morocco it is not multiple shareholders and a board of directors.
necessary to appoint a local shareholder or partner. In French this is a Societe Anonyme (SA). The
Indeed, a foreigner can create a business without minimum capital to set up a SA is about $35,000
resorting to Moroccan partners. (MAD 300,000).

The simplest legal form for a company is the equivalent Registering a SARL company in Morocco involves six
of the limited liability company (LLC). In French this is procedures and takes 12 days. By comparison the
a Socit Anonyme Responsabilit Limite (SARL). regional average for North Africa and the Middle East

Let us help your North African entry

14
Setting up a business

investors, information about the setting up of the


company and about the investment of foreign funds
must be given to the exchange control board office.

Taxation
The Moroccan tax system is codified under the
General Tax Code (CGI). The main points applicable
to local companies are:
Basic corporate tax rate of 30%
Exact tax base and rate depend on the type of
activity
Tax exemption for the first five years of operation
(for exportation or for hotels)
Value added tax (VAT) is applied at a flat rate of 20%
Tax on dividends is 10% and this excludes any
further taxation.

Morocco has signed tax treaties with almost 40


countries to avoid double taxation. A full list of these
countries is available on the website of the Ministry of
is eight procedures and 20 days, according to the Economy and Finance.
World Bank study Doing Business 2012.
Tax incentives (see tables on pages 18 and 19)
The first step is to obtain a Certificat Ngatif, which Under Moroccan law and economic incentives, certain
registers the company name at the Intellectual Property sectors receive tax incentives, for example for the
Moroccan Office (OMPIC). Next a deposit is paid in export of goods and services or hotels. There are also
a bank and a receipt obtained called the attestation export processing zones (zones franches in French)
de depot in French. After legalizing the company that provide specific tax and customs privileges.
statutes at the local mayors office (Commune),
documents must be filed with the tax office to register Taxation of individuals
the company with the Ministry of Finance for obtaining For individuals, whether expatriate or simply on
tax identification numbers, and with the Tribunal of temporary assignment, the tax code specifies that
Commerce, after having published information in a these people are liable to tax in Morocco if they have
local newspaper and in the official newspaper. This a permanent residence in Morocco or they remain in
is the most time-consuming step taking seven days. Morocco for a period of at least 183 days continuously
Finally, have a company stamp made. Also, for foreign or intermittently during the fiscal year.

We are focused on business in North Africa, a region of high


growth and potential. Based in Casablanca (Morocco), we offer
legal and tax advice. Our experienced staff speaks English,
French and Arabic and reacts fast and realistically. Specializing
in company law and taxation over all Maghreb countries, we
accompany our clients in various projects: investment deals,
public or private tenders, and establishing partnerships with
local companies or entrepreneurs.

15
Moreover, the employer in Morocco must retain a regulations. Special regulations from the central bank
withholding tax for the employees personal income authority or the foreign exchange bureau (Office des
tax. These are established on a sliding scale, with a Changes www.oc.gov.ma) must be fulfilled.
maximum rate of 38% when the employees salary
exceeds approximately $23,500 annually (MAD Investments from abroad in foreign currency must
200,000). Companies must pay the personal income first be declared to the competent authorities. The
tax owed by employees. Employers should note that initial investments may consist of monies paid into the
staff expect their wages on a net basis, so companies capital of subsidiary companies, or cash paid through
should include these taxes in their calculations to bank accounts associated with the companys
assess total payroll costs. operations, or payments for acquisitions of assets
such as real estate. It is legal to repatriate greater
Social security and labor law funds than were imported initially. Retained profits
Social security contributions are taken both from can be transfered provided that the company has
employee wages (at 8% rate) and from employers paid its taxes.
(at 16% rate). However, non-Moroccan staff
assigned by their employer to Morocco from a Careful attention should be paid to imports of
nation which has signed a social security agreement services. Indeed, although one may pay foreign
with Morocco may be exempt from local dues if they services from Morocco, the type of service imported
prove they are still contributing to social security in (brand or franchise royalties, technical assistance
their country of origin. fees, management fees, etc.) must respect Moroccan
foreign exchange regulations that specify the
The use of foreign labor is regulated in Morocco. procedures for payment of each type of service.
However, a foreigner can obtain a valid work permit
if they are detached by a foreign company and Real estate
remain subject to social security of their country of A foreigner (either individual or corporate entity) can
origin. A person may also be allowed to work as easily acquire property (land or building) provided
the legal representative of a Moroccan corporation that it is not agricultural land. Property is subject to
(for example the general manager of a SARL). detailed legal and administrative processing. This
On the other hand, if neither case applies, the guarantees security for investors but is accompanied
employer must submit an application to the national by a relatively heavy bureaucracy.
employment agency (ANAPEC), which will assess
if Moroccan applicants can be found to fulfill the Legislation
required functions. Moroccan corporate law is based on French law but
with adaptations for the Moroccan economy. Laws
Foreign exchange regulations are published in Arabic and French.
Of obvious concern to foreign investors is whether
one can repatriate income, dividends or interest on For more information:
investments back to ones country of origin. Ministry of Economy and Finance www.finances.gov.ma
Moroccan national employment agency (ANAPEC)
Because the Moroccan dirham (MAD) is not a freely www.anapec.org
convertible currency, Morocco has specific exchange Foreign exchange bureau (Office des Changes)

The company was founded by Frederic Elbar, who benefits from almost 20 years
of experience in North and Central Africa. For six years, Mr. Elbar was partner with
PWC in Central Africa, and for almost nine years he was partner of French law firm
CMS Bureau Francis Lefebvre in North Africa in charge of the region. Mr. Elbar
provides his expertise in helping foreign companies and investors set up business
in North Africa, from his base in Casablanca, the economic capital of the Kingdom
of Morocco.

Maghreb Consulting & Training


Legal and tax advice
www.maghreb-consulting.com
16
Moroccan
taxes made
easy
The Moroccan tax code is quite straightforward.
Here are some of the highlights.

Direct taxes Morocco offers many tax credits and subsidies to foreign companies.
The Value Added Tax (VAT) in Morocco is set at a
standard rate of 20%. There are three reduced rates Corporate Taxes
(7%, 10% and 14%) for specific products or services. Capital gains are taxed at a 30% flat rate. Foreign
Basic food staples, books and publications, certain companies can take advantage of numerous tax
loans and financial services are not subject to VAT. credits or subsidies (see chart below). The AMDI
(Invest in Morocco investment promotion agency) can
Aside from the VAT, there are specific excise provide further details.
(consumption) taxes, for example on alcohol, tobacco,
The following table summarizes the corporate tax
sugar, petrol products and others.
scale:
Tax treaties
Morocco has signed free trade or tax treaties with over Basic rate 30% of profits
sixty countries worldwide, and this number increases
every year. The latest status can be verified on the Rate applicable for financial services
37% of profits
AMDI website. Morocco applies withholding taxes at companies (e.g. banks, insurance, etc.)
the flat rate of 10% on dividends, interest payments Optional rate for construction or 8% of the
and royalties. When a tax treaty exists, deductions engineering companies contract amount
may apply and the actual rate may be lower.

Beneficiary Tax incentives *


Companies exporting goods and /or services First 5 years : exemption from corporate tax, pro rated based on export sales
As of Year 6 : taxation at the reduced corporate tax rate of 17.5% also pro rated on export turnover
Hotels and similar Same as for export companies ; revenues must be generated in foreign currency

Export Free Zones Exemption from customs duties


First 5 years : exemption from corporate tax
As of Year 6 : taxation at the reduced corporate tax rate of 8.5% for 20 years.
Companies having Casablanca Finance City First 5 years : exemption from corporate tax, pro rated based on export sales
status ** As of Year 6 : taxation at the reduced corporate tax rate of 8.5%
For employees : personal tax rate limited to 20%.
Companies having signed an investment Exemption from customs duties on the investments
convention with the government Qualifying condition : investment must be above MAD 200 million (ca. $23 million)
Newly established companies Exemption from VAT on investments for 24 months

*Information provided by Maghreb Consulting; ** Credit institutions, insurance companies and brokers, consulting firms to the financial sector

18 Doing Business in Morocco | 2012 Edition


Taxation

ends on December 31 of the same year. Moroccan


companies are obliged to adopt IFRS accounting
rules progressively.

Without going into full details, Moroccan


accounting rules are inspired from French rules.
Companies must prepare annual summaries of
their accounts on the closing of the fiscal year
based on the records kept in various ledgers
(livre journal, grand livre and livre dinventaire
in French). The annual summaries must include
balance sheet, accounts payable and receivable,
profit and loss statement, cash flow statement,
and additional information or notes.

Although consolidated reporting is only mandatory


for publicly-traded companies in Morocco, it is
proving more and more useful for foreign companies
Personal income tax having Moroccan subsidiaries, explains Emmanuel
The table below provides the current scale applicable Amon, managing director of Viareport, a French
for personal income tax in Morocco: software company with operations in Morocco.

Income level (annual, in thousands) Tax rate Audit and certification


The rules for auditing and auditors in Morocco were
less than 30 MAD 0%
modified in 1999. External audits are required for
from 30 to 50 MAD 10% joint stock companies (societe anonyme), for publicly
from 50 to 60 MAD 20% listed companies and for LLCs (SARL) having annual
revenues above MAD 50 million ($5.8 million). The
from 60 to 80 MAD 30%
audit must be led by a commissaire aux comptes
from 80 to 180 MAD 34% (statutory auditors) and certain restrictions apply. For
above 180 MAD 38% certain types of company, two statutory auditors are
required.
There are several tax credits or possible deductions
for foreign taxpayers in Morocco. It is best to consult For more information:
with regional tax authorities or the central government Moroccan Tax Ministry www.portail.tax.gov.ma
for full details. For expatriates, there are no particular Invest in Morocco Agency (AMDI) www.invest.gov.ma
tax clauses, but Morocco has signed non-double Ministry of Finance www.finances.gov.ma
taxation treaties with most countries.
Moroccan accountants and auditors association
www.acam.assoc.ma
Accounting and reporting
Ordre des Experts Comptables du Maroc
In Morocco, the fiscal year starts on January 1 and www.oecmaroc.com

Beneficiary Grants (subsidies) *


Export services** Exemption from corporate tax, under the same conditions as export companies
Government subsidy in order to reduce employee tax rate to a maximum of 20%
Qualifying condition : company must be established in a so-called near-shoring zone
Companies having signed an investment Government contribution to cover certain expenses (real estate, external infrastructure, and
convention with the government training costs)
Companies benefitting from Hassan II funds Reimbursement of real estate acquisition and construction costs, up to a defined per cent
(specific sectors)
Any company employing staff in Morocco Reimbursement of training expenses, within certain limits
*Information provided by Maghreb Consulting; ** Credit institutions, insurance companies and brokers, consulting firms to the financial sector

2012 Edition | Doing Business in Morocco 19


Low barriers
to high value
To improve its attractiveness in the offshoring
sector, Morocco has introduced valuable
incentives and developed infrastructure to
accommodate technology-intensive companies.
Foreign investors have started flocking.

N o, offshoring in Morocco is not a high-speed


boat race. It refers to a set of three key activities
that European and North American companies
Offshoring is a key area for development in Moroccos national industrial pact.

are sub-contracting out to specialist firms in costs. By comparison, costs between Morocco and
Morocco, including IT outsourcing, call centers and southern Europe for certain financial services are
telemarketing. revealing with a differential in the cost of labor of up
to 50%.
Moroccan programmers and engineers develop
solutions to European software problems for Offshoring, considered as a high value-added niche,
CapGemini. Specialists respond to customer has already substantially contributed to Moroccos
service or other back office tasks for WebHelp development. It is the most advanced of selected
out of Casablanca call centers. And telemarketers priority areas, with well-defined and attractive
handle outbound sales and marketing campaigns for incentives (see page 18 and 19) and is backed by
companies such as Teleperformance. good training programs that provide skilled human
resources.
The Moroccan government seems to have hit the
jackpot when it selected offshoring as one of the The Ministry of Industry, Trade and New Technologies
seven key development areas within its national has overseen the establishment of twin dedicated
industrial pact. Along with aeronautics, automotive offshoring zones. These two platforms, called Casa
and other sectors, offshoring is showing good results. Nearshore and Technopolis, are fully operational and
No wonder the World Bank has chosen Morocco as already host over 70 companies.
the best global reformer in 2011.
Next on plan are Fes Shore, Tetouan Shore and
And because of the low cost of its workforce and the Oujda Shore, named after the cities where they are
combined financial incentives on offer, Morocco has a located. Construction is well-advanced and the first
strong competitive advantage for offshoring operating office spaces will be ready before the end of 2012.

Ambitious targets for IT and offshoring


Current 2008 Target 2013
Employment 32,000 58,000
Offshoring revenues $95 mill. $700 mill.
Direct + $820 million
GDP Increases
Induced +2.3 billion
Source: Maroc Numeric strategic plan

20 Doing Business in Morocco | 2012 Edition


Offshoring

Insight
HR: 15 620 people have been trained
Training is one of the main pillars of the industrial strategy
Emergence. Morocco recognizes that the availability and
quality of human resources helps determine its attractiveness
and contributes to increased productivity and improved
competitiveness. To this end, several projects have been
completed or are underway in collaboration with professional
associations and operators in the field of training. Since
launching in 2009, the National Pact for Industrial Emergence
(EINP), intended to implement the Plan Emergence, some
15,620 people were trained and placed in 217 companies
operating in the global businesses of Morocco.

attractiveness is the geographic proximity, which


is a factor that weighs financially. Proximity to
headquarters enables companies such as IT
applications maintenance or call centers to save
Moroccos offshoring efforts are bearing fruit. In terms on management travel costs, and thus increase
of numbers, the Ministry points to an export turnover profitability.
of $820 million in 2011 and confirms that the target
employment of 100,000 new jobs by 2015 is already Low costs and high incentives
halfway achieved. For companies offshoring in Morocco, geographical
proximity is certainly one factor of appeal. But this
As for development prospects, they are positive with is not all. Morocco has other aces up its offshoring
100,000 jobs created and the expectation of about sleeve which means the country can boast of a unique
$2.3 billion in offshoring revenues attained in 2015, package to interested foreign companies.
explains a Ministry spokesperson. That means 70,000
new jobs over the next three or four years and a four- Morocco offers a pool of qualified human resources
fold increase in revenues generated. and the nearshore zones all have incentives and
subsidies to assist companies with training efforts on
International confidence ongoing education.
Moroccos appeal can no longer be hidden and is
becoming well known to foreign companies in search Morocco also offers an attractive incentive framework
of cost-effective and nearby solutions. Nearly a centered around a personal income tax rate capped
hundred international companies have placed their at 20%. As for housing, it is diversified and in line with
confidence in the sector by installing branches in best international standards, including dedicated
Moroccan offshoring parks, explains Abderrafie integrated industrial platforms with cabled, air-
Hanouf, CEO of MedZ Sourcing, a subsidiary of conditioned and guarded offices.
Caisse de Depot et de Gestion Development.
Our cumulative investment over the next five years
Moroccos efforts in developing and promoting its will reach one billion dollars, aiming to develop and
offshoring zones have paid off. The country is now one manage competitive offshoring zones, offering client
of the worlds most sought-after destinations in the companies efficient services and infrastructure, says
field. Proof thereof comes from A.T. Kearneys 2011 Mr. Hanouf of MedZ Sourcing.
Global Services Location Index, in which Morocco
appears in the top 30 most attractive countries. For more information:
National Pact for Industrial Emergence 2009-2015
A.T. Kearney ranks attractiveness based on three www.emergence.gov.ma
criteria: the banking and financial structure, the MedZ Sourcing - www.medz-sourcing.com
business environment, and the quality of labor Ministry of Industry, Trade and New Technologies
available. Also playing a role for Moroccos www.mcinet.gov.ma

2012 Edition | Doing Business in Morocco 21


Aviation
takes off
Morocco has developed an internationally
competitive aerospace platform that is already
recognized worldwide.

T en years ago, Morocco focused on the potential


of the aeronautics and space industries. Today,
aeronautics is a significant engine of growth, with
annual growth prospects of 20%. The industrial base The aviation sector is attracting more foreign and Moroccan Investors.
includes more than 100 companies, consisting mainly
of subsidiaries of multinationals or of joint ventures The sector continues to attract foreign and Moroccan
between Moroccan and international operators. This investors. Investments grew markedly from $34
cluster includes aircraft maintenance, logistics, wiring, million in 2009 to $41 million in 2010. In other words,
mechanical engineering, sheet metal, assembly, aeronautics continues to earn its kudos as one of the
surface treatment and composite materials. key industrial priorities in Moroccos so-called metiers
mondiaux the key professions for which the country
More than 8,000 skilled workers are currently wishes to develop world-class expertise.
employed in the aeronautics sector and future
ambitions are big. The sector expects to reach 15,000 Still climbing
jobs by 2015 and 23,000 by 2020. Aeronautics in Morocco is still on the climb due to a
combination of factors. Firstly, there is the generally
Much of the aerospace cluster is located in the positive worldwide industry outlook, with top aircraft
economic capital Casablanca (Aeropole Nouaceur) manufacturers enjoying full order books for the next
and, to a lesser degree, in the Tangier free trade five years.
zone. Within GIMAS (Groupement des Industries
Marocaines Aronautiques et Spatiales), the Climbing high
federation that covers aeronautics and space Evolution of export earnings - key industries
industries in Morocco, optimism about the future of
the aviation industry is aplenty. 5000
4500
Moroccan order books are filled and the kingdom has 4000
become a globally recognized low-cost destination 3500
for aviation, offering logistical proximity and a skilled
3000
workforce, explains GIMAS Chairman Hamid el
($M)

Andaloussi. Morocco has become the destination of 2500


choice for operators in the aerospace sector. 2000
1500
International references include EADS, Boeing, 1000
Labinal, Snecma, Aircelle, Creuzet, Zodiac, Daher and
500
Souriau. The sector contributes high added value, with
a production value of around $665 million in 2010, 0
against only $575 million in 2009. Thanks to export 2004 2009 2010
sales, it also brings in foreign currency. For the year Aeronautics Automotive Electronics Oshoring
2010, this reached $260 million against $230 million
in 2009. Source: UNCTAD

22 Doing Business in Morocco | 2012 Edition


Aeronautics

Success Story
Bombardier lands in Morocco
Canadian aircraft manufacturer Bombardier is planning its
Moroccan debut in late 2013. The company has signed a
letter of intent to develop an extensive manufacturing facility
at the aeronautics cluster in Nouaceur near Casablanca.
Although finalized discussions are still ongoing, Bombardier
plans to invest $200 million for the establishment of the
unit. The money will be spread over eight years beginning
in 2013.
Company spokesperson Haley Dunne explained: The project
will first enable Bombardier to produce simple components
and structures, such as aircraft floorboards.
Although Bombardier has not yet divulged the names of the
Moroccan management team, the local strategy remains
one of strengthening the companys position in emerging
Secondly, new investors are still flocking to Morocco. markets, notably to take advantage of substantially cheaper
Large Canadian aircraft manufacturer Bombardier is production costs. The new company is expected to generate
the latest to announce a substantial investment (see 850 direct jobs and a further 4,000 indirect ones.
sidebar) amounting to over $200 million. This will be the second major accolade for the governments
Emergence plan, intended to develop a strong national
Whether via organic growth or via new joint venture
industrial base. To date the prime industrial success story
openings, 2012 promises to be beneficial for local
companies. Another growth factor is that Morocco is has been that of French auto manufacturer Renault, which
adding new capabilities and areas of expertise that has made large commitments in the Tangier area.
integrate different technologies and add new value.
The wide base of companies cover many of the links To meet these concerns, including providing 15,000
in the industrial chain: manufacturing, assembly, trained staff by 2015, the Institute of Aeronautical
surface treatment, engine and fuselage maintenance, Professions (IMA) was launched in 2010 to provide
design and CAD-CAM. Morocco is fourth worldwide training in fitting and assembly of aircraft components,
for the manufacture of electrical wiring. aircraft sheet metal, composite materials, CNC
machining, and electrical systems.
Educating the workforce
According to GIMAS, the sector is liable to double in More than 300 people were trained in the first year
size over the coming years, taking advantage of this and IMA proposes to train 1,000 people annually by
combination of favorable factors. 2014 instead of the 800 previously planned.

But there are challenges. Chafib Khalifa, deputy IMA Director Abdelbasset Bentoumi says the length
CEO of Midpark, a 165-hectare industrial park near of training, tailored to each business, ranges from 23
Casablanca and platform destination for aviation to 42 weeks and includes core training in French,
industries, underlines the main difficulty encountered quality control, knowledge of aeronautics and
by companies in the sector. aircraft, interpersonal communications and safety.
The aviation industry, where quality and reliability are
One of the biggest challenges faced by aerospace the watchwords, requires a fundamental teaching of
companies in Morocco is undoubtedly staff training, educational rigor and professional commitment.
Mr. Khalifa states. This does not fully meet the needs
of companies. New hires are often trained internally, For more information:
which requires an investment in time and money. But GIMAS (Groupement des Industries Marocaines
there is a risk that trained staff will quickly abscond, Aronautiques et Spatiales) www.gimas.org
attracted by better-paying offers from competitors. This National Pact for Industrial Emergence 2009-2015
can lead to a wage war and a loss of competitiveness. www.emergence.gov.ma

2012 Edition | Doing Business in Morocco 23


Road to riches
Morocco believes that a strong automotive
manufacturing base can bring employment
and export currencies. Fiat and Renault share
that vision and is it now becoming a reality.

U ntil recently, Morocco was like most emerging


markets when it came to cars they were mostly
imported. For the kingdom, the first step towards car
manufacturing came in 1960 with its first automobile
assembly plant, built for Somaca near Casablanca.
The going was tough for the first 35 years, until an
agreement was signed with Fiat in 1995 to assemble Morocco produced 800 million ($1 billion) in car components in 2009.
some models.
to $500 million) on a massive plant near Tangier. The
We had to compete against a massive influx of used Moroccan government was determined not to repeat
car imports, up to 90,000 vehicles per year, explains the mistakes that caused the Fiat failure.
Larbi Belarbi, the head of Somaca and also of the
Moroccan auto federation, AMICA (LAssociation The government realized it needed a strong auto
Marocaine pour lIndustrie et le Commerce de manufacturing cluster to truly become a worldwide
lAutomobile). actor in the area, explains Mr. Belarbi. So the
Tangier Free Zone was conceived with Renault as its
In 2009, fully 93% of car registrations were new queen bee and a swarm of component suppliers from
vehicles, whereas that figure had only been 32% in all corners of the world as her attendants.
2001. Alas, the Italian honeymoon only lasted until
2002 when Somaca ran into difficulties. Thankfully, Moving up the value chain
Renault saw an opportunity and in 2003 acquired Formerly all cars assembled in Morocco were
Somaca for the assembly of its Logan model and CKD (complete knock down) with parts delivered
various light commercial vehicles. to Morocco from other countries in pieces and
assembled locally. Gradually local components
The next step was Renaults decision in September started to be manufactured and used, such as
2007 to invest on a massive plant near Tangier, electric wiring and textile seats. Local factories also
capable of producing up to 400,000 vehicles per started to do metal stamping for the bodywork and
year in the near future. The investment included machining for engine parts. Today, about three-
a first phase of 350 million ($435 million), and a quarters of the cars produced in Morocco are from
second phase of 200 to 400 million ($250 million local content.

Ma-renault-cco
Top Moroccan automotive companies
Rank Company Year Founded Rev. 2010* CEO Website
1 Renault Maroc 1928 486.1 Jean Frederic Piotin renault.ma
2 Somaca (80% Renault-owned) 1959 424.9 Larbi Belarbi See renault website
3 Auto Hall 1907 330.9 Abdellatif Guerraoui autohall.ma
4 Sopriam 1977 258.4 Loic Morin sopriam.ma
5 Centrale Auto Cherifienne 1929 234.9 Victor el Baz volkswagen.ma
* Figures in $M Source: Economie Entreprises Les 500, Mediaside analysis

24 Doing Business in Morocco | 2012 Edition


Automotive

Breakdown of vehicles registered, 2009


Government Rental cars
vehicles 1%
3%

Light goods
vehicles
20%

Private cars
76%

Total: 1,457,000 vehicles Source: AMICA study

The countrys two assembly plants are located in Even so, Morocco frets about the difference in levels
Tangier, where the Renault Logan is produced, and of labor productivity and automation (i.e. robots),
in Casablanca, where Somaca produces various which are substantially higher in Spain. Moreover,
models. Some of this production is exported to Spain local suppliers need to strengthen their steel foundry
and other European countries, as well as to North and and stamping capabilities to compete in those areas.
sub-Saharan Africa.
Government strategic impulse
Since 1996, the local production of automotive The Moroccan government has never been shy about
components has jumped from almost 200 million to its automotive ambitions. The sector is viewed as
over 800 million ($250 million to $1 billion) in 2009. the top priority in the national industrial plan. Much
The increasing use of local content has increased the of the funding for local and foreign investors comes
number of component manufacturers in Morocco. from the Hassan II Fund, which provides subsidies of
These now supply both domestic and foreign markets, 50% for land acquisition, 30% for plant construction
Spain in particular. or acquisition, and 10% for equipment.

Moroccan component manufacturers have some For the Ministry of Industry which oversees the fund,
strong competitive advantages, for example in areas these investments are designed to make vehicle
requiring intensive use of skilled labor. These include assembly a permanent part of the Moroccan industrial
electronic components, cloth seats and electric landscape, as well as to upgrade component
cabling, which itself accounts for more than 50% of manufacturing to international standards and
Moroccos automotive exports by value. stimulate R&D efforts on upstream activities. The plan
is for Moroccan-designed and built vehicles to start
Moroccos labor costs are highly competitive as well, rolling off local assembly lines one day soon.
about a fifth of those in Spain and less than one-tenth
of those in France. Morocco has travelled a long way in the past 50
years. It now boasts 85% car ownership per capita,
Average pay in the auto sector virtual autonomy in producing its own vehicles, and is
even gaining valuable foreign currency from vehicle
Country Monthly salary ($) and component exports.
Morocco 310
Spain 1,611 For more information:
AMICA (Moroccan Association of Auto Manufacturers
France* 3,985 and Distributors) www.amica.ma
* France based on extrapolation from OECD data Ministry of Industry, Trade and New Technologies
Source: Ministry of Industry, OECD www.mcinet.gov.ma

2012 Edition | Doing Business in Morocco 25


Mixing it up
Morocco is the largest energy consumer in
North Africa but depends on imports for 93%
of its energy needs. Good news therefore that
the energy mix is shifting, as the country makes
aggressive plans to diversify its energy sources.

L ike many emerging markets, Morocco is energy-


hungry. According to the International Energy
Agency, from 1999 to 2009 the countrys energy
consumption leaped 46% to reach about 16,000
KTOE (kilotons of oil equivalent). This makes Morocco
the largest energy consumer in the Maghreb. Alas the
country needs to import almost all of its energy needs.

The framework for the energy situation in Morocco Prospects look good for domestic oil production.
is straightforward. Electricity production is open to
private players. The distribution of electricity to end production (oil is at 62%). Coal has witnessed the
users is almost completely a state monopoly, with largest growth, since it represented only 8% of the
the Office National de lElectricite (ONE) being the thermal mix in 1980. Last in line is natural gas, a
main public utility. Incipient privatization, however, is recent arrival. This can be explained by the fact that
transforming local utilities an important gas pipeline linking Algeria to Spain
transits through Morocco, yielding royalty payments
In 2010, Morrocan power plants produced a total in kind.
of 20,850 GwH of energy. More than 80% of this
electricity came from thermal power plants (see Hydroelectric power production is Moroccos second
chart). About 16% came from hydroelectric and source of power. The country has 100 dams holding
so-called STEP plants. Renewable energy (mostly back a total of 15.8 billion cubic meters of water.
wind) accounted for the rest but that proportion is One limit to hydroelectric power is the fluctuation
scheduled to increase significantly in the future. of rainfall in Morocco and therefore of the dams
electricity-generating capacity, which fluctuates from
For its thermal plants, Morocco relies on three 8% to 1.6% depending on rainfall and therefore dam
combustibles. The main source is oil, which Morocco capacities.
imports from Saudi Arabia (57.1%), Iraq (23.5%),
Russia (15%) and Iran (4.4%), in 2010. Following Morocco also imports electricity from Spain, to the tune
oil comes coal, which now fires up 22% of power of 4,607 GwH in 2011, or about 7% of domestic needs.

Oil refining leads the business


Top five energy companies in Morocco
Rank Company Activity Founded 2010 Rev. * CEO Website
1 Samir Oil & gas 1959 4,331.0 Jamal Baamer samir.ma
2 Afriquia Oil & gas 1959 1,637.4 Aziz Akhannouch akwagroup.com
3 Shell du Maroc Oil & gas n.a. 1,112.3 Mohammed Raihani n.a.
4 Jorf Lasfar Energy Company Electricity production 1997 572.4 Abdelmajid Iraqui Houssaini jlec.ma
5 Energie Electrique de Tahaddart Electricity production 2010 68.0 n.a. endesa.es
* Figures in $M Note: Only top 3 oil & gas companies listed; Source: Economie Entreprises Les 500, Mediaside analysis

26 Doing Business in Morocco | 2012 Edition


Energy

Changing the energy mix


Projections for energy production by source

16000 14,580 MW

14000 14% Solar

12000
14% Wind

10000 14% Hydro


MW
8000
14% Oil
5,292 MW
6000 11%
2% Natural Gas
4000 24%
24% 26%
Coal
2000 7%
34%
0 7% Nuclear
Changes coming 2008 Projected 2020
The profile of Moroccan energy production is
expected to change drastically in forthcoming years Source: ONHYM
as the governments plans for energy independence
take shape. The most notable changes concern A key measure to accomplish this is the National
renewable energy. Increasing the use of renewable Energy Strategy (Strategie Energetique Nationale or
resources to produce energy as a way of overcoming SEN) signed in March 2009. SEN set up three agencies:
the countrys dependence on energy imports is a the Agency for the Development of Renewable and
main focus of Moroccan government policy-making. Efficient Energy (Agence de Developpement des
Morocco is committed to having wind, solar and Energies Renouvellables et de lEfficacite Energetique
hydroelectric power represent 42% of its power or ADEREE); the Energy Investment Company
generation by 2020. (Societe dInvestissements Energetiques or SIE); and

Close Up
The Earths crust in Morocco hides untold secrets
The National Bureau of Petroleum and Mines (ONHYM), which to explore for oil in the deep offshore block of the Essaouira
was created in 2005, is the geologists best friend in Morocco. basin. This work focused on 3D and 2D seismic acquisition and
This independent, self-financed public institution is in charge well drilling. The results showed 15 oil prospects.
of contributing to the kingdoms growth by fostering the On the minerals/mining front, ONHYMs first task was to
development of its mineral riches (except phosphates, handled complete proper geological mapping. These studies revealed
by OCP, see page 58). As such, ONHYM has two aces up its a rich crust to be exploited: rare earth materials, niobium and
sleeve: petroleum and its derivatives, and minerals. its cousin tantalum (used for steel alloys), uranium and iron
The good news for Morocco is that it is about to become ore are but some of the pickings. Overall, ONHYM is working
oil-wealthy. ONHYM, either on its own or in partnership with on 28 minerals projects, of which ten are in partnership
private foreign investors, has carried out exploratory drillings, with foreign investors. One example is the 2011 project with
revealing reserves both offshore in the Atlantic (Tangier- the American company Newmont in the Lesser Atlas area.
Larache area) and onshore (Gharb basin region). As an Using geochemical methods, the venture seeks to assess the
example of a partnership, the Ras Tafelney exploration project potential for precious and basic metals, namely using bulk
was conducted jointly with Vanco, based in Houston, Texas, leach extraction techniques.

2012 Edition | Doing Business in Morocco 27


the Moroccan Agency for Solar Energy (Agence sites selected, four will have power generation capacities
Marocaine pour lEnergie Solaire or MASEN). of 400 or 500 MW.

ADEREE and MASEN promote the use of Ain Beni Mathar will increase ONEs production capacity
renewable energy and energy efficiency by from 200 to 250 MW by 2012 and enable it to supply nearly
providing plans and incentive measures, 1590 GWh per year, of which 55 GWh will come from solar.
overseeing development projects, identifying
potential resources, and through similar actions. Although the renewable efforts are focused on solar and
SIE seeks to attract and organize private funding wind, ADEREE is also overseeing pilot projects in biomass
for energy projects. A 2010 law provides the and capturing energy from the ocean tides and currents.
legal framework for these projects. With Moroccos 3,500 kilometers of Atlantic coastline, the
potential for ocean-generated energy is significant.
Morocco is also integrating itself in the energy
system of the African and Euro-Mediterranean Energy efficiency
region to strengthen energy security, Not all of the governments efforts are focused on energy
reduce supply costs, expand exchanges, supply. Increasing energy efficiency is another focus.
develop cooperation, technology transfer Energy efficiency is being promoted as a national priority
and solidarity. Morocco plans to integrate as the quickest and least expensive way to better use
with Mediterranean solar energy plans and and save energy while reducing energy bills. Indeed,
regional initiatives such as Transgreen. energy efficiency is a top priority in Moroccos energy
Transgreen was signed in July 2010 to study strategy with an ambition to save 12% in 2020 and 15%
the feasibility of a power network between the in 2030 of energy consumption. From this perspective,
North and South of the Mediterranean shores energy efficiency action plans have been implemented
and to develop interconnections around the in all key sectors, including transportation, industry and
Mediterranean basin. construction. According to the government, the savings
could be substantial. Almost half of the savings (48%)
Wind and solar could come from industry, nearly a fourth (24%) from
A new Moroccan wind farm was inaugurated transport and 19% from housing.
in June 2010 and represented an investment
of $320 million. Located near Tangier, the wind The government is implementing the energy efficiency
farm has 165 units capable of producing 140 program progressively by distributing energy-saving light
MW of electricity. Additional wind farms are
in the development stage and will produce an
additional 570 MW by the end of 2015.
Betting on natural elements
Moroccos renewable energy plans - present and future
The target is to generate about 2,000 MW from
Phase 1
wind by 2020. The financing for this comes from
2008 to 2012
Investment

mixed public-private sources, since funding and


operation of some of the wind farms is conceded
to private companies. $2.8 Billion
Completed by 2011:
Regarding solar energy, the target also is to
* Mixed thermal-solar plant Ain Beni Mathar 472 MW
generate 2,000 MW by 2020, representing 14%
of national electric capacity and save a million * Wind farm Tanger 1 140 MW
tons of oil annually. MASEN is implementing this * Hydro-electric plant Tanafuit el Borj 40 MW
strategy. * Gas turbine plant Mohammedia 3 x 100 MW
New plants

* Diesel plant Tan-Tan 116 MW


Progress in solar energy mirrors that of wind
power. A first combined cycle (mixed gas solar) * Extension diesel plant Dakhla 16 MW
at Ain Beni Mathar was inaugurated in 2010
with a capacity of 472 MW, of which about Total = 1,084 MW
5% is solar. A further roll-out of solar capacity
is planned but with fewer, more concentrated Still planned for 2012: Total = ca. 600 MW
plants than is the case for wind. Of the five solar

28 Doing Business in Morocco | 2012 Edition


Energy

bulbs, modifying building codes and broadcasting Insight


awareness campaigns nationwide.
Solar powered villages
Demand One of the successes in Moroccan energy is the rural
Energy demand in Morocco has been growing fast, on electrification program using solar panels.
average by 7.5% annually from 1995 to 2005. From Started in 1998 by the public utility Office National
2008 to 2009 demand dipped a bit, with growth at de lElectricite (ONE), the program saw access to an
only 2.5% (or 15.1 MTOE). Both 2010 and 2011 saw
autonomous electric supply increase from 22% of the rural
demand growing at rates above 5%, indicating the
population in 1996 to almost complete coverage (96.5%)
sustained energy hunger. 2010 had 6.7% growth to
16.1 MTOE, whereas 2011 had 5.0% at 16.9 MTOE. by 2009.
Using an innovative financing scheme and relying on
With Morocco determined to take its energy future in private partners, the program set about providing energy to
its own hands, many foreign companies are jumping rural villages via solar panels, which are cheaper to set up
on the bandwagon to help make things happen and than establishing a connection to the central power grid.
reduce the countrys energy dependence. Energy
projects have been one of the key segments for Each client received a solar panel, one 150 amp-hours
inbound FDI over the past years. battery, a regulator and one 12-volt outlet with two sockets.
But those who were willing or able to pay for higher capacity
For more information: systems were able to install more lights. The battery can
MASEN (Agence Marocaine de lEnergie Solaire) store enough power to last up to five days, allowing the
www.masen.org equipment to run year round even in bad weather.
ADEREE (Agence Nationale por le Developpement des The program proved so successful that ONE has advised
Energies Renouvellables et de lEfficacite Energetique) other sub-Saharan countries on the topic, and has even
www.aderee.ma
sold part of its Senegalese joint venture to the World Bank.
SIE (Societe dInvestissements Energetiques)
www.siem.ma
ONE (Office National de lElectricite du Maroc)
www.one.org.ma Later
Energy Ministry (Ministre de lEnergie, des Mines, de lEau Until 2020
Investment

et de lEnvironnement) www.mem.gov.ma
n.a.

MASEN - Integrated solar program


* Solar plant Ain Beni Mathar 400 MW
Phase 2 * Solar plant Sabkha Tun 500 MW
2013 to 2015 * Solar plant Foum el Oued 500 MW
Investment

* Solar plant Boujdour 100 MW


$8.5 billion * Solar plant Ouarzazate 500 MW
 Total = 2,000 MW
* Clean coal thermal plant Jorf Lasfar 2 x 350 MW Wind program
* Clean coal thermal plant Safi 2 x 660 MW * Wind farm Turfaya 580 MW
* Solar plant Ouarzazate 500 MW * Wind farm Akhfenir 200 MW
* Wind farm Bab el Oued 50 MW
New plants

* Wind farms Different locations 570 MW


* Wind farm Haouira 50 MW
* Hydro-electric plant El Menzal Mdes 550 MW
New plants

* Wind farm Jbel Khalladi 120 MW


* Hydro-electric plant (STEP) Abdelmounen 550 MW  Total by end 2012 = 1,000 MW
* Wind farm Taza 150 MW
* Wind farm Tanger 2 150 MW
* Wind farm Koudia el Baida 300 MW
* Wind farm Tiskrad 300 MW
* Wind farm Boujdour 100 MW
Additional total by 2020 = 1,000 MW
Investment figures include rehabilitation budgets for existing plants.

2012 Edition | Doing Business in Morocco 29


IT sector gets
a helping hand
The high potential of the information
technology sector has sparked so much
interest on the part of government that it
conceived the Digital Morocco 2013 strategy
to develop the sector.

M orocco is working hard to improve its ranking


on the worlds connectivity stage and use the
IT sectors dynamism to generate employment and
economic growth. Foreign companies are jumping on
the bandwagon.

Morocco is well positioned and has great potential By 2015, Moroccos IT sector is expected to reach $8.2 billion in revenues.
to become a technology and innovation hub in North
Africa, U.S. Assistant Secretary of State for Scientific KPO centers) and about 3,000 jobs for the domestic
Affairs, Kerri-Ann Jones stated at a recent conference market needs, namely systems integrators for
in Rabat. Moroccan companies, according to APEBI.

The Moroccan government could not agree more, To complete the quantitative panorama, the sector
and numerous private companies have not waited for counts almost 1,000 companies, with about 170
a government invitation to set up operations in the APEBI-member companies accounting for 95%
country. of turnover. Among these heavy hitters are several
multinationals and domestic companies: Capgemini,
According to the association of information technology Bull Morocco, Brams Technologies, Astec, Sage
companies (APEBI), the aggregate revenues of local Morocco, Omnidata, GFI Morocco, IWC, HP, Microsoft
industry (in the distribution, hardware, and service and Disway, just to name a few.
segments, but excluding telecoms operators), has
grown from $330 million in 1998 to $525 million in Given the successful implementation of the various
2001 and fully $985 million in 2011. programs and strategies, the IT sector is on target to
reach $8.2 billion in revenues (including telecoms) by
The IT sector generates close to 28,000 jobs in 2015. Also expected are an aggregate 58,000 jobs in
export-oriented IT companies (for example, BPO or the sector.

Growing by bits
Top Moroccan information technology companies
Rank Company Year Founded Rev. 2010* CEO Website
1 Disway 2010 198.1 Hakim Belmaachi disway.com
2 Maroc Bureau 1960 91.8 Abderrahmin Zniber marocbureau.ma
3 Webhelp Maroc 2000 66.0 Dirk vam Leeuwen webhelp.fr
4 Bestmark 1993 55.3 Oussama Ghissassi bestmark.ma
* Figures in $M Note: Chart does not include telecoms companies; Source: Economie Entreprises Les 500, Mediaside analysis

30 Doing Business in Morocco | 2012 Edition


Information Technology

Success Story
Moroccan success in payment systems
Founded in 1995, Hightech Payment Systems (HPS) is a
Moroccan SME that has managed within less than a decade
to elbow its way into the hotly-contested electronic banking
segment. For the companys entrepreneurial founder
Mohamed Horani, and his partners, key success factors
included an innovative corporate culture, a flexible business
model that adapted to changing environments, and steady
international expansion onto five continents.
Currently ranked among the top ten worldwide companies in
its sector, HPS star product is called PowerCARD, a versatile
software for electronic payments. PowerCARD is used by
almost 100 clients in banking, telecoms, distribution, and
other sectors in 60 countries.
For more information:
Professor Lhacen Belhcen, ESCA School of Management
Co-author of the HPS case study

The ministry is proposing to extend the Injaz offer to


But for IT to play its full role as a growth driver, two all university masters level students for the 2011-12
issues must be tackled. academic year. This would represent about 45,000
students in nearly 110 institutions.
Our corporate fabric needs to be updated, in
particular entrepreneurial start-ups and SMEs need For small enterprises, the ministry created the
to be incubated and fostered, says APEBI President Moussanada IT program and so far more than
Lakhlifi Mohammed. And we need to improve 100 companies have enrolled to improve their IT
access for citizens to computer equipment and the knowledge base. For micro-enterprises, the Infitah
Internet and thus anchor the use of IT in daily life. The program promotes IT awareness and training. Since its
challenge is to act quickly and extensively. inception, more than 1,400 small enterprises have taken
advantage of the subsidized initiative. Another program,
The states helping hand Rawaj, touches on retail and distribution needs. Rawaj
Although the private sector carries the bulk of the facilitates data exchange for barcodes and inventory
IT sectors development, the Moroccan government management and receives a 75% state subsidy.
is not sitting by idly. King Mohamed VI has taken a
personal interest in the Digital Morocco 2013 program Reaching the government electronically
(Plan Maroc Numerique in French), launched in 2009 by Next in line are e-government services. We have
the Ministry of Industry, Trade and New Technologies. progressed from 104th to 56th place in the Online
Service Index of the United Nations, says Badr
Among other priorities, Digital Morocco aims at Boubker, director of the Digital Morocco plan. Some
facilitating the use of IT by the general public, e-government services have already been launched,
computerizing SMEs, and the digitizing public while others are being tested, for example the Watika
administration operations. Three years on, many of site, which enables downloading of standard forms or
these goals are well underway. making an online appointment at a hospital.

For example, the Injaz program, which reached For more information:
26,000 students in 44 schools in 19 cities in two years APEBI (association of information technology
(2009-2011), enables students to acquire a laptop and companies) www.apebi.org.ma
Internet access while benefiting from a state subsidy Ministry of Industry, Trade and New Technologies
of up to 85% of the cost, capped at $425. www.mcinet.gov.ma

2012 Edition | Doing Business in Morocco 31


Telecoms is
picking up
Market privatization and liberalization have
ensured the development of a healthy
telecoms market in Morocco. Areas of future
development include mobile data flows, further
fixed-line penetration and Internet access.

T elecommunications is no sneezing matter


in Morocco. The sector contributes about
5% of the national GDP. Moroccos big step in
Moroccos low fixed-line penetration offers investment opportunities.

pockets, the market for mobile telephony is quickly


preparing its telecoms industry for competition reaching saturation. Mobile penetration reached the
and private enterprise participation was the 1998 109% penetration mark. At the end of 2011, Morocco
split of the monopoly Office National des Postes et counted about 36.5 million mobile subscribers. Maroc
Telecommunications (ONPT) into a postal branch (La Telecom is market leader with 47% share, followed by
Poste Maroc) and a telecoms branch (Maroc Telecom). Meditel at 33% and then Wana/Inwi at 20%.
Maroc Telecom was established as an independent
100% government-owned company. Mobile rates have been dropping thanks to
competition. The average revenue per minute dropped
This scission presaged the auctioning of the second 33% from 2010 to 2011, from 1.12 to 0.74 MAD/min
mobile license, later in 1999. The winning bid was (about 9 cents/minute). Part of the drop in charges is
filed by the Spanish-Portuguese duo of Telefonica due to the increased interconnectability between the
and Portugal Telecom, acquiring 32.18% each. A three mobile operators. There had been pressure from
third entrant in the mobile arena was Wana Corporate consumer groups since they claimed that Moroccan
in 2009, after being granted a license for second rates were among the most expensive in the region.
generation mobile phone services. Usage increased by 39% from 41 minutes/month to
57 minutes/month.
The Moroccan government also created the telecoms
regulatory body (Agence Nationale de Regulation On the other hand, in the positive spectrum, mobile
des Telecommunications or ANRT), in 1999, in order operators are hoping that as smart phones become
to regulate the nascent competitive industry, and to more commonplace, data exchange will take on
encourage innovation. a bigger impact. ANRT sees the need for another
change in regulation as the mobile world moves to
As could be expected with three market competitors billing no longer based on time and distance of call,
backed by deep French, Kuwaiti and Moroccan but on the volume of data transferred.

Moroccan troika
Top three Moroccan telecoms companies
Rank Company Ownership Founded 2010 Revenues* CEO Website
1 Maroc Telecom Vivendi (France) 1998 3,703.5 Abdeslam Ahizoune iam.ma
2 Medi Telecom (Meditel) France Telecom et al. 1999 667.0 Mohamed Elmandjra meditel.ma
3 Wana Corporate (Inwi) ONA + Zain (Kuwait) 1999 432.7 Frederic Debord wana.ma
* Figures in $M Source: Economie Entreprises Les 500, Mediaside analysis

32 Doing Business in Morocco | 2012 Edition


Telecoms

Analysis
Driver of foreign investment
Telecoms, especially the mobile variety, have traditionally
been a major engine of foreign direct investment, and
Morocco is no exception to the rule. The three operators in
competition nationally all have foreign shareholders, and the
20-year battle has barely begun.
Moroccos traditional main operator what used to be ONPT
until Maroc Telecom was founded by law in 1998 is a $3.7
billion giant that is active in all telephony segments. When
partially privatized by the government in 2001, 30% (now
increased to 53%) of the company was acquired by Vivendi
of France, while about 17% of shares are traded publicly, and
the government maintained a 30% share.
Number two in the market is Meditel (Medi telecom),
founded in 1999, based upon its capture of the second
As Ahmed Khaouja, ANRTs director of competition
and operator surveillance has said: Digital mobile telecoms license. At its inception, and for its first
convergence and the increasing importance of IP ten years, Meditel was a child of mixed blood: Spanish and
(Internet Protocol) for data exchanges between Portuguese for about 64% (via Telefonica and Portugal
parties is having an impact. Data traffic is bound to Telecom), and Moroccan (government via its holding CDG)
multiply 20-fold in the future. for the remainder. In 2009, Spain and Portugal divested,
replaced first by Moroccan investors, who then flipped their
Slow fixed-line growth 40% stake for 640 million to France Telecom (Orange).
Fixed-line penetration has seen recent slow growth,
The third and latest entrant to the market is Wana Corporate
after a decline in the mid-2000s. Currently Morocco
counts only 3.7 million landlines, or about the (branded Inwi for the Moroccan masses), which has SNI and
same level as Tunisia, a country with one-third its Kuwaiti ownership (31%). In 2009, the upfront investment for
population. Of these landlines, many come from Zain of Kuwait was $324 million.
Wana clients who have access to wireless fixed lines
using the CDMA technology. MAD/min (2011 vs. 2010), while usage dropped from
136 minutes/month to 126 minutes/month.
Fixed lines suffered drops on both average revenue
and average usage. Rates dropped from 1.01 to 0.95 Internet access is faster on the pick-up. Of the 3.2
million Internet clients in 2011, more than 80% were
Attached to their mobiles accessing over 3G mobile access. The growth here
Evolution of mobile subscribers, 2000 to 2011 has been much stronger than for fixed lines, with
90% increase in 3G Internet access year-on-year. The
40
expectation is that within five years there will be five
35 million clients.
30
According to analysts and the ANRT, despite
Subscribers (millions)

25 increasing levels of saturation, there is still a silver


20 lining to the telecoms cloud. Aside from new services
and the concomitant rise in revenues per subscriber,
15
Morocco can count on increasing numbers of double-
10 subscribers.
5
For more information:
0
0 1 2 3 4 5 6 7 8 9 0 11 Agence Nationale de Regulation des
200 200 200 200 200 200 200 200 200 200 201 20 Telecommunications (ANRT) www.anrt.net.ma
Source: ANRT Ministry Industry et al. www.mincom.gov.ma

2012 Edition | Doing Business in Morocco 33


Textiles are
durable
After a slump in 2009, the textile sector
continues to present significant potential for
development. With some state support and
a reconfiguration of the international market,
manufacturers are preparing for a new offensive.

R epresenting nearly 12% of Moroccan exports and


the top industry in terms of jobs, the Moroccan
textile sector is an essential activity. Overall, textiles
mean more than 1,500 factories employing over Some foreign companies in Morocco are planning to increase local production.
200,000 workers throughout the kingdom.
of Industry and Commerce argues that the growth
In 2009 the sector confronted two new realities potential by 2015 could be as high as 60%. No
that slowed the momentum. First, there was the wonder the government has identified textiles and
progressive encroachment of Chinese goods into leather goods as a key economic priority.
European markets, creating tough competition for
incumbent suppliers, namely from North Africa and Big brands like Li & Fung and Marks & Spencer
particularly Morocco. Then the economic crisis hit have started returning to Morocco after having left in
Europe and demand for Moroccan textiles dropped. search of better quality-price ratios in the Far East,
enthuses one government official.
For some analysts, this period of turbulence has been
overcome. Both a recent analysis by English firm Other companies, like the Spanish giant Inditex
Oxford Business Group and data from the Moroccan of Zara fame, are strengthening their presence in
Industrial Observatory show a 6% increase in textile Morocco and plan to increase their local production
exports in 2011, when Morocco exported $3.5 billion quotas. In fact, Inditex is planning to boost its
worth of textiles and leather goods despite the Moroccan production capacity from 60 to 150 million
unfavorable context. pieces in the mid-term, making Morocco the second
largest supplier to Inditex after China.
Better yet, during the first four months of 2012, the
rate of growth of the sector appears to be accelerating Industry insiders also say that Camaieu, a major
significantly with 13% growth in exports. The Ministry brand in womens ready-to-wear fashion, plans to

Rich in fiber
Top Moroccan textile companies
Rank Company Activity Founded 2010 Revenues* CEO Website
1 Richbond Furnishings 1964 82.3 Abdelaziz Tazi richbond.fr
2 Softgroup Textile Textiles & real estate 1918 79.5 Abdellatif Kabbaj softgroup.ma
3 Maroc Modis Textiles & leather n.a. 70.2 Gregory Petit-Peucelle n.a.
4 CTC Maroc Synthetic fibers 1977 61.4 Khlaid Benjelloun n.a.
5 Co. Indust. Des Fibres. Fibers 1951 30.6 Benaissa Didouh lacif.net
* Figures in $M Source: Economie Entreprises Les 500, Mediaside analysis

34 Doing Business in Morocco | 2012 Edition


Textiles

export consortia, launched by the Ministry of


Industry, in cooperation with the United Nations
Industrial Development Organization (UNIDO) and the
Italian government.

On the competitive front, one expert at the Ministry of


Industry explains that the recovery is also due to the
adjustments in sourcing policies from China.

Morocco intends to capitalize on these trends in


three ways: fashion clothing (habillement mode in
French) and fast fashion, home textiles, and high-tech
fabrics. The first is fashion clothing, which has made
its reputation with clients. Morocco intends to exploit
this renown more in international markets. One way
is via fast fashion, smaller and need-by-yesterday
re-orders that offer significant growth opportunities
in the current environment of tight initial orders and
fast re-orders when garments fly off the shelves.

Part two regards home textiles which are now closely


double its production in Morocco to 12 million units associated with lifestyle. The third segment is the
as a result of the the renewed attractiveness of the development of high-tech and smart textiles used in
sector following the 2009 crisis. the automotive industry, agriculture or construction.

Reasons for recovery Three forms of state support


There are two factors that help explain the sectors To promote its visibility on international markets,
rebound in 2011. First, textile professionals say while Morocco organized two major events in 2011:
there was an impact on the order books in 2009 it was Morocco in Mode and Morocco Sourcing. These
never to the extent of full cancellations. Also Chinese exhibits enabled 153 participants including 24
suppliers were not as competitive as at first thought. foreign companies to exhibit their products and meet
international outsourcers.
What happened here? Quite simply, China suffered
increased production costs and lack of flexibility. The government has also arranged financial subsidies
Chinese costs have exploded by more than 40% over for textile suppliers who supply, among others,
the past three years, following increases in wages, Marwa, Paris Texas, Moda Line, Active Line, Crossing
raw materials costs and logistics. Simultaneously, Fingers and Blue Icoma. This provides the suppliers
there is a structural trend in Morocco towards greater with financial support in exchange for guarantees on
sustainability, namely via closer production centers. increasing export quotas.

In the face of declining demand, retailers have chosen Also, with attention long focused on international
to rationalize their supply and minimize risk-taking, markets, there is now a realization that the domestic
says Mustafa Sajid, president of the Moroccan Textile market, valued at $4.7 billion, should not be ignored.
Industry Federation (AMITH).
Lastly, the government is placing hope on the
A second factor that has helped the rebound is that implementation of a program supporting investment
more and more Moroccan suppliers have grouped in the upstream spinning, dyeing, finishing of fabrics
together into export consortiums. These cooperative (threads and yarns), since Morocco currently imports
structures enable suppliers to share resources and the majority of its raw material.
thus boost productivity, and benefit from better
international (outbound marketing) representation. For more information:
Ministry of Industry and Commerce www.mcinet.gov.ma
Furthermore, the textile industry consortia now Moroccan Textile Industry Federation (AMITH)
receive the support of the government initiative www.textile.ma/amith

2012 Edition | Doing Business in Morocco 35


Morocco top 80
Corporate Finance Top 80 companies Banking penetration

More deals
Corporate finance is still a golden fleece,
Fund raising: from both private and institutional
investors, as well as traditional debt from banks
Financial engineering: for mega-projects, this
has included cost-benefit analysis and finance
companies at a glance Banking for all
Much of the growth of the Moroccan
Q&A
What are the strengths that have made Morocco
second-ranked in Africa in terms of FDI?
Many factors are contributing to my countrys
although things were better two years ago. structuring, as well as financial advisory and 2010 2010 2010 2010 banking system is due to increased access attractiveness. Good economic growth rates. A structured
set of government initiatives that are bearing fruit. Low
company valuation services. Year revenues profits CEO/ Year revenues profits CEO/ to banking services. Banque Centrale debt levels. The financial sector in Morocco is healthy and
T he market for corporate Rank Company Sector founded $M $M Managing Director Website Rank Company Sector founded $M $M Managing Director Website
Populaire (BCP), Moroccos second largest plays a key role in funding projects in key industries. Let
finance and investment In retrospect, 2011 was characterized by an unstable 1 OCP (Office Cherifien Phosphates) Mining, energy 1920 2,898.45 586.35 Mostafa Terrab ocpgroup.ma 43 Comp. Gen. Immobiliere Real Estate 1960 148.52 25.99 Mohammed Ali Ghannam cgi.ma
me cite tourism, energy, infrastructure, manufacturing,
banking services in Morocco regional geopolitical environment, and illiquid 2 SAMIR Energy 1959 2,467.35 55.70 Jamal Baamer samir.ma 44 Sopriam Automotive 1977 147.19 n.a. Loic Morin sopriam.ma
bank, explains their success. real estate and finally agriculture as examples.
is relatively young. It started stock and bond markets. This made fundraising 3 Maroc Telecom Telecoms 1891 2,124.53 662.91 Abdeslam Ahizoune iam.ma 45 Brasseries du Maroc Agro-food 1919 146.59 16.66 Pierre Castel brasseries-maroc.com

S
off in the mid-1990s, to operations difficult. Nonetheless last year witnessed everal factors contribute What is the role of BCP within the various
Mouhssine Cherkaoui 4 ONE (Office Nat'l Electricite) Energy 1963 1,390.92 n.a. Ali Fassi Fihri one.org.ma
46 Univers Acier Industrial 2002 142.32 n.a. Mohammed Azmi universacier.com government sector plans?
Administrateur Directeur
accompany privatizations and some sizeable operations worth mentioning: 5 Altadis Maroc Agro-food 1910 932.84 n.a. Larbi Bellaha imperial-tobacco.com to increased banking
initial public offerings on the beginning of SNI asset disposal, namely via the 47 Palmeraies Koutoubia Agro-food 1985 142.06 n.a. Tahar Bimezzagh koutoubia.net penetration. The first is We play an important role, formalized by various
Gnral, Upline 6 Afriquia Energy 1959 932.84 n.a. Ali Wakrim afriquia.ma
conventions signed between BCP and the government,
Casablanca Stock Exchange. sale of part of food processor Lesieur-Cristal to 48 Amendis Public utility 2001 141.52 n.a. Olivier Dietsch veoliaeau.com undeniably the densification
Corporate Finance 7 Royal Air Maroc Transport 1957 862.41 n.a. Driss Benhima royalairmaroc.com and bolstered by the fact that BCP is the only bank in
Sofiprotol and Moroccan institutional investors 8 Shell (Maroc) Energy n.a. 633.66 26.85 Mohamed Raihani shell.com 49 Yazaki Maroc Industrial 2000 138.26 n.a. Redouane Haribeche yazaki.com Rachid Agoumi of the banking network and its
Morocco to be rated investment grade by Standard
Things have evolved since, and the past decade three IPOs (Stroc Industry, Jet Alu and S2M) 50 Marsa Maroc Public utility 2006 139.19 27.32 Mohamed Abdeljalil sodep.co.ma Directeur Gnral, extension to remote areas that & Poors. Our key role in real estate deserves mention:
9 Marjane Holding Retail 1990 587.55 22.32 Mohamed El Amrani marjane.co.ma
has seen a good degree of maturing, as services capital increases (BCP and LabelVie) Banque Centrale had witnessed low banking usage we were leaders in setting up Fonciere Emergence, an
10 Total Maroc Energy 1926 515.39 n.a. Eric Gosse total.ma 51 SCBG Agro-food 1919 136.39 n.a. Pierre Castel n.a.
become more professional. A number of renown massive bond and negotiable debt security issues. Populaire levels. Proximity is a key lever for fund that owns various industrial assets and logistics
11 Douja Addoha Real Estate 1988 505.20 n.a. Anas Sefrioui groupeaddoha.com 52 Centr. Auto. Cherifienne Automotive 1929 133.80 n.a. Victor el Baz volkswagen.ma
financial institutions, including Upline Group (part banking services. To increase platforms, and then rents them to tenant companies.
12 Centrale Laitiere Agro-food 1929 544.64 38.45 Driss Bencheikh centralelaitiere.com 53 Acima Retail 2002 129.40 n.a. Mohamed Lamrani acima.ma
of Banque Centrale Populaire or BCP), have The sluggish regional and international context will this closeness-to-the-customer factor, several This reduces their capital needs.
accumulated a wealth of experience via two continue to influence market conditions in 2012. 13 Cosumar Agro-food 1929 387.13 38.45 Mohammed Fikrat cosumar.co.ma 54 Maghreb Steel Industrial 1975 128.86 n.a. Fadel Sekkat maghrebsteel.com banks set up so-called lightweight agencies, to
14 Medi Telecom Telecoms 1999 380.00 41.51 Mr. Mohamed Elmandjra meditel.ma BCP is actually part of Groupe Banque
decades of rich offerings. We should see a year of further consolidation and 55 Coficab Maroc Automotive 2001 118.94 n.a. n.a. coficab.com reduce investment costs, while simultaneously Populaire. Tell us more about the usefulness of
tightening liquidity. 15 Lydec Public utility 1997 378.00 n.a. Jean-Pierre Ermenault lydec.ma introducing other technology-intensive solutions.
56 Radeema Public utility 1971 116.00 15.26 Mustapha El Habti radeema.ma your regional branches.
Within corporate finance, the Moroccan scene has 16 Lafarge Ciments Construction 1928 356.74 111.87 Mohammed Kabbaj lafarge.ma
57 Disway Telecoms 2010 112.87 4.80 Hakim Belmaachi disway.com Structured as a cooperative bank, we have BCP as the
been most active for the following: Yet this will not prevent several important 17 Al Omrane Holding Real Estate 2004 332.89 19.79 Najib Larraichi alomrane.ma Another key growth driver was provided by
58 Nexans Maroc Industrial 1947 108.74 n.a. Frederic Vincentr nexans.ma central hub and ten regional banks as spokes around
Capital markets: here the twin drivers are corporations from raising funds for ongoing 18 Jorf Lasfar Energy Energy 1997 326.09 34.25 Abdelmajid Iraqui Houssaini jlec.ma changes in the regulatory environment. For a it. This gives us a nationwide footprint, and a deep
activities on the stock market and the private debt growth. For some, it will mean opening their capital 19 Label' Vie Retail 1985 325.69 n.a. Zouhair Bennani labelvie.ma 59 Les Grands Travaux Routiers Construction n.a. 107.14 n.a. Jean-Yves Leborgne colas.com long time, the minimum income requrements set understanding of regional competitive advantages. In
market. For the former, the usual suspects have to institutional investors and investment funds. 20 Petrole du Maghreb Energy 1945 279.92 n.a. Ahmed Bouaida n.a. 60 Autoroute du Maroc Public utility 1989 105.74 n.a. Othmane Fassi-Fihri adm.co.ma for opening an account was a major obstacle, turn, this has helped many a foreign direct investor.
been IPOs, secondary market share issues, and For others, it will imply access to capital markets 21 Renault Maroc Automotive 1928 277.05 n.a. Jean Frederic Pioti renault.ma 61 Global Engines (Hyundai) Automotive 2000 93.28 7.40 Khalil al Sheikh hyundai.ma since much of the population was excluded. The
other share-related transactions. For the latter, via bonds and negotiable debt securities. Lastly, 22 Societe Nationale Siderurgie Industrial 1974 274.19 n.a. Ayoub Azami sonasid.ma impulse given by the Moroccan Central Bank
62 Cooper Pharma Pharma 1933 87.55 n.a. Ayman Cheikh Lahlou cooperpharma.ma
the market has seen the issuance of company some players might restructure their debt, namely 23 Libya Oil Maroc Energy 1993 272.39 n.a. Ezzedin Manyouni oilibya.com (Bank Al Maghrib) for low income banking in 2010 for the development of micro-credit lending, in
63 Laprophan Pharma 1949 86.62 n.a. Hassan Bennis laprophan.com
bonds and other financing instruments overleveraged actors. Moreover, SNI will continue 24 Salam Gaz Energy 1991 255.66 8.60 Abdelkader Benbekhaled salamgaz.ma made access to banking services much broader. parallel to new bank account creations.
Strategic operations: these include divesting its non-strategic assets. The Moroccan 64 Dimagaz Energy n.a. 84.29 n.a. n.a. n.a.
25 Inwi Corporate (Wana) Telecoms 1999 246.54 n.a. Mr. Karim Zaz wana.ma
privatizations, public-private partnerships, government might add extra boost to the market 65 Groupe CMCP Pulp paper 1949 82.76 6.26 Marc van Lieshout internationalpaper.com More specifically at BCP, the emphasis has always Growth from the Moroccan diaspora
26 Office National Eau Potable Public utility 1972 242.87 9.20 Ali Fassi-Fihri onep.ma
mergers and acquisit-ions, private placements, if it revives its privatization process, or issues 66 Asment Temara Construction 1976 82.36 n.a. Brahim Laraqui asment.co.ma been on increasing the number of account holders, The Moroccan diaspora has always been an
27 Somaca Automotive 1959 255.46 n.a. Larbi Belarbi See renault website
joint ventures, etc. tenders for expert financial support and advice. 67 Nestle Maroc Agro-food 1984 82.02 n.a. David Saudan nestlemaghreb.com the depth of penetration. Banking agencies have important part of the business of BCP Banque
28 Holcim Maroc Construction 1972 236.07 44.58 Dominique Drouet holcim.ma
been established in far-flung, remoter areas of the Populaire. BCP currently holds a more than 50%
29 Afriquia Gaz Energy 1959 229.68 21.92 Mr. Aziz Akhannouch akwagroup.com 68 Eaux Minerales d'Oulmes Agro-food 1933 81.02 n.a. Mohammed Bensalah oulmes.com
Shall we do a deal in Morocco? 30 Lesieur Cristal Agro-food 1940 229.14 10.19 Mr. Samir Oudghiri Idrissi lesieur-cristal.ma 69 MIFA Industrial 1947 79.96 7.13 Abdeslam Sijelmassi mifa.ma
country, be it in the less accessible mountainous market share in this important banking segment,
Upline Group, part of BCP bank since 2008, private equity ventures. MAD 7.5 billion at areas of the Atlas chain or in the deep south. since remittances from overseas Moroccans
31 CMH Energy 1976 226.55 n.a. Hassan Agzenai cmh.co.ma 70 Jet4You (TUI) Transport 2005 78.09 6.66 Karim Baina jet4you.com Unlike other banks, the BCP network is principally represent almost 10% of national GDP.
boasts of two decades of experience in various the end of 2011. Diverse risk/return portfolio
32 Ciments du Maroc Construction 1952 198.83 54.37 Mohamed Chaibi cimentsdumaroc.com 71 RADEEF Public utility 1969 77.56 7.60 Najib Lahlou Mimi radeef.ma outside of the major urban centers.
financial services. Here is how we can help your offers access to varied PE funds, including
financial needs in Morocco. infrastructure, tourism, real estate and others. 33 Managem Mining, energy 1930 191.63 18.72 Mr. Abdellaziz Abarro managem-ona.com
72 Toyota du Maroc Automotive n.a. 77.49 n.a. Adil Bennani toyota.co.ma BCP has pioneered this field since the late
34 Redal Public utility 2001 189.70 n.a. Olivier Dietsch veoliawater.com In addition to this traditional agency structure, 1960s, catering to the more than three million
1.Brokerage. Through personal advice and 4.Corporate finance. Through a team of 15 73 Maphar Pharma 1951 76.56 n.a. Patrice Fuster maphar.ma
35 SGTM Construction 1971 175.97 n.a. Ahmed Kabbaj sgtm-maroc.com there have been four innovative programs that Moroccans located throughout the world (see
an electronic trading platform, full access investment bankers, we offer the gamut of 74 Sews Cabind Maroc Automotive n.a. 76.29 n.a. n.a. sws.co.jp
to Moroccan financial exchanges. Regular investment banking services: debt and equity 36 Auto-Hall Automotive 1907 175.04 12.73 Abdellatif Guerraoui autohall.ma have proven successful for BCP: the low income sidebar on page 43). After obtaining a full
37 Alliances Developpement Real Estate 1994 174.04 n.a. Alami Lazraq alliances.co.ma 75 Gazafric Energy n.a. 76.29 n.a. n.a. gazafric.com banking program dedicated to a broad segment banking license for its French subsidiary, BCP
research and analysis notes to guide you. instruments, M&A, as well as privatizations.
38 Office National Aeroports Transport 1990 173.31 18.06 Dalil Guendouz onda.ma 76 RISMA Tourism 1993 75.76 n.a. Mr. Azzedine Guessous accor.com of the population; a program of banking services established antennae in the main EU countries.
2.Asset management. About MAD 20 billion 5. I nsurance brokerage. Our branch Chaabi for retirees, stuctured via the two largest national In parallel, clientele offerings were expanded to
39 COPAG Agro-food 1987 173.24 n.a. Mr. Moulay Loulttiti n.a. 77 Auto Nejma Maroc Automotive 1963 74.49 7.46 Mohamed Amal Guedira autonejma.ma
under management. Winner of the coveted Courtage offers life and non-life insurance.
40 North Africa Bottling Agro-food 2003 171.51 n.a. Samia Bouchareb cocacola.ma 78 IMTC Transport 1987 73.56 n.a. Mohamed Karia imtc.co.ma pension funds CNSS and CIMR; the launch eventually encompass not only the standard
Alistotmar Chaabi Treasury award. Sole Our clients include Maroc Telecom, Vivendi, OCP, 41 Ziz Carburants Energy 1968 170.18 n.a. Hachemi Aouni n.a. of Souk Bank, a initiative of mobile branches portfolio (savings, investment and assistance
Moroccan manager of a French fund. LabelVie, Axa, Autoroutes Maroc, ONCF, etc.
79 Sanofi-Aventis Maroc Pharma 1951 72.23 n.a. Patrice Fuster sanofi-aventis.ma
42 Petromin Oils Maroc Energy 1968 155.45 7.60 n.a. petrominoils.com that crisscross the souks (open-air markets) of products) but also new innovations. Islamic
3.Private equity. The leading partner in 80 Comanav Transport 1946 70.83 n.a. Taoufik Ibrahimi comanav-voyages.ma
the Kingdom for rural banking; and finally, the financial products are increasingly requested by
Further information on www.upline.co.ma
Source: Magazine Economie Entreprises, Les 500 Special Issue; Mediaside analysis involvement of the Banque Populaire Foundation this community abroad.

37 Doing Business in Morocco | 2012 Edition 38 Doing Business in Morocco | 2012 Edition 2012 Edition | Doing Business in Morocco 39 2012 Edition | Doing Business in Morocco 40
Morocco top 80
Corporate Finance Top 80 companies Banking penetration

More deals
Corporate finance is still a golden fleece,
Fund raising: from both private and institutional
investors, as well as traditional debt from banks
Financial engineering: for mega-projects, this
has included cost-benefit analysis and finance
companies at a glance Banking for all
Much of the growth of the Moroccan
Q&A
What are the strengths that have made Morocco
second-ranked in Africa in terms of FDI?
Many factors are contributing to my countrys
although things were better two years ago. structuring, as well as financial advisory and 2010 2010 2010 2010 banking system is due to increased access attractiveness. Good economic growth rates. A structured
set of government initiatives that are bearing fruit. Low
company valuation services. Year revenues profits CEO/ Year revenues profits CEO/ to banking services. Banque Centrale debt levels. The financial sector in Morocco is healthy and
T he market for corporate Rank Company Sector founded $M $M Managing Director Website Rank Company Sector founded $M $M Managing Director Website
Populaire (BCP), Moroccos second largest plays a key role in funding projects in key industries. Let
finance and investment In retrospect, 2011 was characterized by an unstable 1 OCP (Office Cherifien Phosphates) Mining, energy 1920 2,898.45 586.35 Mostafa Terrab ocpgroup.ma 43 Comp. Gen. Immobiliere Real Estate 1960 148.52 25.99 Mohammed Ali Ghannam cgi.ma
me cite tourism, energy, infrastructure, manufacturing,
banking services in Morocco regional geopolitical environment, and illiquid 2 SAMIR Energy 1959 2,467.35 55.70 Jamal Baamer samir.ma 44 Sopriam Automotive 1977 147.19 n.a. Loic Morin sopriam.ma
bank, explains their success. real estate and finally agriculture as examples.
is relatively young. It started stock and bond markets. This made fundraising 3 Maroc Telecom Telecoms 1891 2,124.53 662.91 Abdeslam Ahizoune iam.ma 45 Brasseries du Maroc Agro-food 1919 146.59 16.66 Pierre Castel brasseries-maroc.com

S
off in the mid-1990s, to operations difficult. Nonetheless last year witnessed everal factors contribute What is the role of BCP within the various
Mouhssine Cherkaoui 4 ONE (Office Nat'l Electricite) Energy 1963 1,390.92 n.a. Ali Fassi Fihri one.org.ma
46 Univers Acier Industrial 2002 142.32 n.a. Mohammed Azmi universacier.com government sector plans?
Administrateur Directeur
accompany privatizations and some sizeable operations worth mentioning: 5 Altadis Maroc Agro-food 1910 932.84 n.a. Larbi Bellaha imperial-tobacco.com to increased banking
initial public offerings on the beginning of SNI asset disposal, namely via the 47 Palmeraies Koutoubia Agro-food 1985 142.06 n.a. Tahar Bimezzagh koutoubia.net penetration. The first is We play an important role, formalized by various
Gnral, Upline 6 Afriquia Energy 1959 932.84 n.a. Ali Wakrim afriquia.ma
conventions signed between BCP and the government,
Casablanca Stock Exchange. sale of part of food processor Lesieur-Cristal to 48 Amendis Public utility 2001 141.52 n.a. Olivier Dietsch veoliaeau.com undeniably the densification
Corporate Finance 7 Royal Air Maroc Transport 1957 862.41 n.a. Driss Benhima royalairmaroc.com and bolstered by the fact that BCP is the only bank in
Sofiprotol and Moroccan institutional investors 8 Shell (Maroc) Energy n.a. 633.66 26.85 Mohamed Raihani shell.com 49 Yazaki Maroc Industrial 2000 138.26 n.a. Redouane Haribeche yazaki.com Rachid Agoumi of the banking network and its
Morocco to be rated investment grade by Standard
Things have evolved since, and the past decade three IPOs (Stroc Industry, Jet Alu and S2M) 50 Marsa Maroc Public utility 2006 139.19 27.32 Mohamed Abdeljalil sodep.co.ma Directeur Gnral, extension to remote areas that & Poors. Our key role in real estate deserves mention:
9 Marjane Holding Retail 1990 587.55 22.32 Mohamed El Amrani marjane.co.ma
has seen a good degree of maturing, as services capital increases (BCP and LabelVie) Banque Centrale had witnessed low banking usage we were leaders in setting up Fonciere Emergence, an
10 Total Maroc Energy 1926 515.39 n.a. Eric Gosse total.ma 51 SCBG Agro-food 1919 136.39 n.a. Pierre Castel n.a.
become more professional. A number of renown massive bond and negotiable debt security issues. Populaire levels. Proximity is a key lever for fund that owns various industrial assets and logistics
11 Douja Addoha Real Estate 1988 505.20 n.a. Anas Sefrioui groupeaddoha.com 52 Centr. Auto. Cherifienne Automotive 1929 133.80 n.a. Victor el Baz volkswagen.ma
financial institutions, including Upline Group (part banking services. To increase platforms, and then rents them to tenant companies.
12 Centrale Laitiere Agro-food 1929 544.64 38.45 Driss Bencheikh centralelaitiere.com 53 Acima Retail 2002 129.40 n.a. Mohamed Lamrani acima.ma
of Banque Centrale Populaire or BCP), have The sluggish regional and international context will this closeness-to-the-customer factor, several This reduces their capital needs.
accumulated a wealth of experience via two continue to influence market conditions in 2012. 13 Cosumar Agro-food 1929 387.13 38.45 Mohammed Fikrat cosumar.co.ma 54 Maghreb Steel Industrial 1975 128.86 n.a. Fadel Sekkat maghrebsteel.com banks set up so-called lightweight agencies, to
14 Medi Telecom Telecoms 1999 380.00 41.51 Mr. Mohamed Elmandjra meditel.ma BCP is actually part of Groupe Banque
decades of rich offerings. We should see a year of further consolidation and 55 Coficab Maroc Automotive 2001 118.94 n.a. n.a. coficab.com reduce investment costs, while simultaneously Populaire. Tell us more about the usefulness of
tightening liquidity. 15 Lydec Public utility 1997 378.00 n.a. Jean-Pierre Ermenault lydec.ma introducing other technology-intensive solutions.
56 Radeema Public utility 1971 116.00 15.26 Mustapha El Habti radeema.ma your regional branches.
Within corporate finance, the Moroccan scene has 16 Lafarge Ciments Construction 1928 356.74 111.87 Mohammed Kabbaj lafarge.ma
57 Disway Telecoms 2010 112.87 4.80 Hakim Belmaachi disway.com Structured as a cooperative bank, we have BCP as the
been most active for the following: Yet this will not prevent several important 17 Al Omrane Holding Real Estate 2004 332.89 19.79 Najib Larraichi alomrane.ma Another key growth driver was provided by
58 Nexans Maroc Industrial 1947 108.74 n.a. Frederic Vincentr nexans.ma central hub and ten regional banks as spokes around
Capital markets: here the twin drivers are corporations from raising funds for ongoing 18 Jorf Lasfar Energy Energy 1997 326.09 34.25 Abdelmajid Iraqui Houssaini jlec.ma changes in the regulatory environment. For a it. This gives us a nationwide footprint, and a deep
activities on the stock market and the private debt growth. For some, it will mean opening their capital 19 Label' Vie Retail 1985 325.69 n.a. Zouhair Bennani labelvie.ma 59 Les Grands Travaux Routiers Construction n.a. 107.14 n.a. Jean-Yves Leborgne colas.com long time, the minimum income requrements set understanding of regional competitive advantages. In
market. For the former, the usual suspects have to institutional investors and investment funds. 20 Petrole du Maghreb Energy 1945 279.92 n.a. Ahmed Bouaida n.a. 60 Autoroute du Maroc Public utility 1989 105.74 n.a. Othmane Fassi-Fihri adm.co.ma for opening an account was a major obstacle, turn, this has helped many a foreign direct investor.
been IPOs, secondary market share issues, and For others, it will imply access to capital markets 21 Renault Maroc Automotive 1928 277.05 n.a. Jean Frederic Pioti renault.ma 61 Global Engines (Hyundai) Automotive 2000 93.28 7.40 Khalil al Sheikh hyundai.ma since much of the population was excluded. The
other share-related transactions. For the latter, via bonds and negotiable debt securities. Lastly, 22 Societe Nationale Siderurgie Industrial 1974 274.19 n.a. Ayoub Azami sonasid.ma impulse given by the Moroccan Central Bank
62 Cooper Pharma Pharma 1933 87.55 n.a. Ayman Cheikh Lahlou cooperpharma.ma
the market has seen the issuance of company some players might restructure their debt, namely 23 Libya Oil Maroc Energy 1993 272.39 n.a. Ezzedin Manyouni oilibya.com (Bank Al Maghrib) for low income banking in 2010 for the development of micro-credit lending, in
63 Laprophan Pharma 1949 86.62 n.a. Hassan Bennis laprophan.com
bonds and other financing instruments overleveraged actors. Moreover, SNI will continue 24 Salam Gaz Energy 1991 255.66 8.60 Abdelkader Benbekhaled salamgaz.ma made access to banking services much broader. parallel to new bank account creations.
Strategic operations: these include divesting its non-strategic assets. The Moroccan 64 Dimagaz Energy n.a. 84.29 n.a. n.a. n.a.
25 Inwi Corporate (Wana) Telecoms 1999 246.54 n.a. Mr. Karim Zaz wana.ma
privatizations, public-private partnerships, government might add extra boost to the market 65 Groupe CMCP Pulp paper 1949 82.76 6.26 Marc van Lieshout internationalpaper.com More specifically at BCP, the emphasis has always Growth from the Moroccan diaspora
26 Office National Eau Potable Public utility 1972 242.87 9.20 Ali Fassi-Fihri onep.ma
mergers and acquisit-ions, private placements, if it revives its privatization process, or issues 66 Asment Temara Construction 1976 82.36 n.a. Brahim Laraqui asment.co.ma been on increasing the number of account holders, The Moroccan diaspora has always been an
27 Somaca Automotive 1959 255.46 n.a. Larbi Belarbi See renault website
joint ventures, etc. tenders for expert financial support and advice. 67 Nestle Maroc Agro-food 1984 82.02 n.a. David Saudan nestlemaghreb.com the depth of penetration. Banking agencies have important part of the business of BCP Banque
28 Holcim Maroc Construction 1972 236.07 44.58 Dominique Drouet holcim.ma
been established in far-flung, remoter areas of the Populaire. BCP currently holds a more than 50%
29 Afriquia Gaz Energy 1959 229.68 21.92 Mr. Aziz Akhannouch akwagroup.com 68 Eaux Minerales d'Oulmes Agro-food 1933 81.02 n.a. Mohammed Bensalah oulmes.com
Shall we do a deal in Morocco? 30 Lesieur Cristal Agro-food 1940 229.14 10.19 Mr. Samir Oudghiri Idrissi lesieur-cristal.ma 69 MIFA Industrial 1947 79.96 7.13 Abdeslam Sijelmassi mifa.ma
country, be it in the less accessible mountainous market share in this important banking segment,
Upline Group, part of BCP bank since 2008, private equity ventures. MAD 7.5 billion at areas of the Atlas chain or in the deep south. since remittances from overseas Moroccans
31 CMH Energy 1976 226.55 n.a. Hassan Agzenai cmh.co.ma 70 Jet4You (TUI) Transport 2005 78.09 6.66 Karim Baina jet4you.com Unlike other banks, the BCP network is principally represent almost 10% of national GDP.
boasts of two decades of experience in various the end of 2011. Diverse risk/return portfolio
32 Ciments du Maroc Construction 1952 198.83 54.37 Mohamed Chaibi cimentsdumaroc.com 71 RADEEF Public utility 1969 77.56 7.60 Najib Lahlou Mimi radeef.ma outside of the major urban centers.
financial services. Here is how we can help your offers access to varied PE funds, including
financial needs in Morocco. infrastructure, tourism, real estate and others. 33 Managem Mining, energy 1930 191.63 18.72 Mr. Abdellaziz Abarro managem-ona.com
72 Toyota du Maroc Automotive n.a. 77.49 n.a. Adil Bennani toyota.co.ma BCP has pioneered this field since the late
34 Redal Public utility 2001 189.70 n.a. Olivier Dietsch veoliawater.com In addition to this traditional agency structure, 1960s, catering to the more than three million
1.Brokerage. Through personal advice and 4.Corporate finance. Through a team of 15 73 Maphar Pharma 1951 76.56 n.a. Patrice Fuster maphar.ma
35 SGTM Construction 1971 175.97 n.a. Ahmed Kabbaj sgtm-maroc.com there have been four innovative programs that Moroccans located throughout the world (see
an electronic trading platform, full access investment bankers, we offer the gamut of 74 Sews Cabind Maroc Automotive n.a. 76.29 n.a. n.a. sws.co.jp
to Moroccan financial exchanges. Regular investment banking services: debt and equity 36 Auto-Hall Automotive 1907 175.04 12.73 Abdellatif Guerraoui autohall.ma have proven successful for BCP: the low income sidebar on page 43). After obtaining a full
37 Alliances Developpement Real Estate 1994 174.04 n.a. Alami Lazraq alliances.co.ma 75 Gazafric Energy n.a. 76.29 n.a. n.a. gazafric.com banking program dedicated to a broad segment banking license for its French subsidiary, BCP
research and analysis notes to guide you. instruments, M&A, as well as privatizations.
38 Office National Aeroports Transport 1990 173.31 18.06 Dalil Guendouz onda.ma 76 RISMA Tourism 1993 75.76 n.a. Mr. Azzedine Guessous accor.com of the population; a program of banking services established antennae in the main EU countries.
2.Asset management. About MAD 20 billion 5. I nsurance brokerage. Our branch Chaabi for retirees, stuctured via the two largest national In parallel, clientele offerings were expanded to
39 COPAG Agro-food 1987 173.24 n.a. Mr. Moulay Loulttiti n.a. 77 Auto Nejma Maroc Automotive 1963 74.49 7.46 Mohamed Amal Guedira autonejma.ma
under management. Winner of the coveted Courtage offers life and non-life insurance.
40 North Africa Bottling Agro-food 2003 171.51 n.a. Samia Bouchareb cocacola.ma 78 IMTC Transport 1987 73.56 n.a. Mohamed Karia imtc.co.ma pension funds CNSS and CIMR; the launch eventually encompass not only the standard
Alistotmar Chaabi Treasury award. Sole Our clients include Maroc Telecom, Vivendi, OCP, 41 Ziz Carburants Energy 1968 170.18 n.a. Hachemi Aouni n.a. of Souk Bank, a initiative of mobile branches portfolio (savings, investment and assistance
Moroccan manager of a French fund. LabelVie, Axa, Autoroutes Maroc, ONCF, etc.
79 Sanofi-Aventis Maroc Pharma 1951 72.23 n.a. Patrice Fuster sanofi-aventis.ma
42 Petromin Oils Maroc Energy 1968 155.45 7.60 n.a. petrominoils.com that crisscross the souks (open-air markets) of products) but also new innovations. Islamic
3.Private equity. The leading partner in 80 Comanav Transport 1946 70.83 n.a. Taoufik Ibrahimi comanav-voyages.ma
the Kingdom for rural banking; and finally, the financial products are increasingly requested by
Further information on www.upline.co.ma
Source: Magazine Economie Entreprises, Les 500 Special Issue; Mediaside analysis involvement of the Banque Populaire Foundation this community abroad.

37 Doing Business in Morocco | 2012 Edition 38 Doing Business in Morocco | 2012 Edition 2012 Edition | Doing Business in Morocco 39 2012 Edition | Doing Business in Morocco 40
Morocco top 80
Corporate Finance Top 80 companies Banking penetration

More deals
Corporate finance is still a golden fleece,
Fund raising: from both private and institutional
investors, as well as traditional debt from banks
Financial engineering: for mega-projects, this
has included cost-benefit analysis and finance
companies at a glance Banking for all
Much of the growth of the Moroccan
Q&A
What are the strengths that have made Morocco
second-ranked in Africa in terms of FDI?
Many factors are contributing to my countrys
although things were better two years ago. structuring, as well as financial advisory and 2010 2010 2010 2010 banking system is due to increased access attractiveness. Good economic growth rates. A structured
set of government initiatives that are bearing fruit. Low
company valuation services. Year revenues profits CEO/ Year revenues profits CEO/ to banking services. Banque Centrale debt levels. The financial sector in Morocco is healthy and
T he market for corporate Rank Company Sector founded $M $M Managing Director Website Rank Company Sector founded $M $M Managing Director Website
Populaire (BCP), Moroccos second largest plays a key role in funding projects in key industries. Let
finance and investment In retrospect, 2011 was characterized by an unstable 1 OCP (Office Cherifien Phosphates) Mining, energy 1920 2,898.45 586.35 Mostafa Terrab ocpgroup.ma 43 Comp. Gen. Immobiliere Real Estate 1960 148.52 25.99 Mohammed Ali Ghannam cgi.ma
me cite tourism, energy, infrastructure, manufacturing,
banking services in Morocco regional geopolitical environment, and illiquid 2 SAMIR Energy 1959 2,467.35 55.70 Jamal Baamer samir.ma 44 Sopriam Automotive 1977 147.19 n.a. Loic Morin sopriam.ma
bank, explains their success. real estate and finally agriculture as examples.
is relatively young. It started stock and bond markets. This made fundraising 3 Maroc Telecom Telecoms 1891 2,124.53 662.91 Abdeslam Ahizoune iam.ma 45 Brasseries du Maroc Agro-food 1919 146.59 16.66 Pierre Castel brasseries-maroc.com

S
off in the mid-1990s, to operations difficult. Nonetheless last year witnessed everal factors contribute What is the role of BCP within the various
Mouhssine Cherkaoui 4 ONE (Office Nat'l Electricite) Energy 1963 1,390.92 n.a. Ali Fassi Fihri one.org.ma
46 Univers Acier Industrial 2002 142.32 n.a. Mohammed Azmi universacier.com government sector plans?
Administrateur Directeur
accompany privatizations and some sizeable operations worth mentioning: 5 Altadis Maroc Agro-food 1910 932.84 n.a. Larbi Bellaha imperial-tobacco.com to increased banking
initial public offerings on the beginning of SNI asset disposal, namely via the 47 Palmeraies Koutoubia Agro-food 1985 142.06 n.a. Tahar Bimezzagh koutoubia.net penetration. The first is We play an important role, formalized by various
Gnral, Upline 6 Afriquia Energy 1959 932.84 n.a. Ali Wakrim afriquia.ma
conventions signed between BCP and the government,
Casablanca Stock Exchange. sale of part of food processor Lesieur-Cristal to 48 Amendis Public utility 2001 141.52 n.a. Olivier Dietsch veoliaeau.com undeniably the densification
Corporate Finance 7 Royal Air Maroc Transport 1957 862.41 n.a. Driss Benhima royalairmaroc.com and bolstered by the fact that BCP is the only bank in
Sofiprotol and Moroccan institutional investors 8 Shell (Maroc) Energy n.a. 633.66 26.85 Mohamed Raihani shell.com 49 Yazaki Maroc Industrial 2000 138.26 n.a. Redouane Haribeche yazaki.com Rachid Agoumi of the banking network and its
Morocco to be rated investment grade by Standard
Things have evolved since, and the past decade three IPOs (Stroc Industry, Jet Alu and S2M) 50 Marsa Maroc Public utility 2006 139.19 27.32 Mohamed Abdeljalil sodep.co.ma Directeur Gnral, extension to remote areas that & Poors. Our key role in real estate deserves mention:
9 Marjane Holding Retail 1990 587.55 22.32 Mohamed El Amrani marjane.co.ma
has seen a good degree of maturing, as services capital increases (BCP and LabelVie) Banque Centrale had witnessed low banking usage we were leaders in setting up Fonciere Emergence, an
10 Total Maroc Energy 1926 515.39 n.a. Eric Gosse total.ma 51 SCBG Agro-food 1919 136.39 n.a. Pierre Castel n.a.
become more professional. A number of renown massive bond and negotiable debt security issues. Populaire levels. Proximity is a key lever for fund that owns various industrial assets and logistics
11 Douja Addoha Real Estate 1988 505.20 n.a. Anas Sefrioui groupeaddoha.com 52 Centr. Auto. Cherifienne Automotive 1929 133.80 n.a. Victor el Baz volkswagen.ma
financial institutions, including Upline Group (part banking services. To increase platforms, and then rents them to tenant companies.
12 Centrale Laitiere Agro-food 1929 544.64 38.45 Driss Bencheikh centralelaitiere.com 53 Acima Retail 2002 129.40 n.a. Mohamed Lamrani acima.ma
of Banque Centrale Populaire or BCP), have The sluggish regional and international context will this closeness-to-the-customer factor, several This reduces their capital needs.
accumulated a wealth of experience via two continue to influence market conditions in 2012. 13 Cosumar Agro-food 1929 387.13 38.45 Mohammed Fikrat cosumar.co.ma 54 Maghreb Steel Industrial 1975 128.86 n.a. Fadel Sekkat maghrebsteel.com banks set up so-called lightweight agencies, to
14 Medi Telecom Telecoms 1999 380.00 41.51 Mr. Mohamed Elmandjra meditel.ma BCP is actually part of Groupe Banque
decades of rich offerings. We should see a year of further consolidation and 55 Coficab Maroc Automotive 2001 118.94 n.a. n.a. coficab.com reduce investment costs, while simultaneously Populaire. Tell us more about the usefulness of
tightening liquidity. 15 Lydec Public utility 1997 378.00 n.a. Jean-Pierre Ermenault lydec.ma introducing other technology-intensive solutions.
56 Radeema Public utility 1971 116.00 15.26 Mustapha El Habti radeema.ma your regional branches.
Within corporate finance, the Moroccan scene has 16 Lafarge Ciments Construction 1928 356.74 111.87 Mohammed Kabbaj lafarge.ma
57 Disway Telecoms 2010 112.87 4.80 Hakim Belmaachi disway.com Structured as a cooperative bank, we have BCP as the
been most active for the following: Yet this will not prevent several important 17 Al Omrane Holding Real Estate 2004 332.89 19.79 Najib Larraichi alomrane.ma Another key growth driver was provided by
58 Nexans Maroc Industrial 1947 108.74 n.a. Frederic Vincentr nexans.ma central hub and ten regional banks as spokes around
Capital markets: here the twin drivers are corporations from raising funds for ongoing 18 Jorf Lasfar Energy Energy 1997 326.09 34.25 Abdelmajid Iraqui Houssaini jlec.ma changes in the regulatory environment. For a it. This gives us a nationwide footprint, and a deep
activities on the stock market and the private debt growth. For some, it will mean opening their capital 19 Label' Vie Retail 1985 325.69 n.a. Zouhair Bennani labelvie.ma 59 Les Grands Travaux Routiers Construction n.a. 107.14 n.a. Jean-Yves Leborgne colas.com long time, the minimum income requrements set understanding of regional competitive advantages. In
market. For the former, the usual suspects have to institutional investors and investment funds. 20 Petrole du Maghreb Energy 1945 279.92 n.a. Ahmed Bouaida n.a. 60 Autoroute du Maroc Public utility 1989 105.74 n.a. Othmane Fassi-Fihri adm.co.ma for opening an account was a major obstacle, turn, this has helped many a foreign direct investor.
been IPOs, secondary market share issues, and For others, it will imply access to capital markets 21 Renault Maroc Automotive 1928 277.05 n.a. Jean Frederic Pioti renault.ma 61 Global Engines (Hyundai) Automotive 2000 93.28 7.40 Khalil al Sheikh hyundai.ma since much of the population was excluded. The
other share-related transactions. For the latter, via bonds and negotiable debt securities. Lastly, 22 Societe Nationale Siderurgie Industrial 1974 274.19 n.a. Ayoub Azami sonasid.ma impulse given by the Moroccan Central Bank
62 Cooper Pharma Pharma 1933 87.55 n.a. Ayman Cheikh Lahlou cooperpharma.ma
the market has seen the issuance of company some players might restructure their debt, namely 23 Libya Oil Maroc Energy 1993 272.39 n.a. Ezzedin Manyouni oilibya.com (Bank Al Maghrib) for low income banking in 2010 for the development of micro-credit lending, in
63 Laprophan Pharma 1949 86.62 n.a. Hassan Bennis laprophan.com
bonds and other financing instruments overleveraged actors. Moreover, SNI will continue 24 Salam Gaz Energy 1991 255.66 8.60 Abdelkader Benbekhaled salamgaz.ma made access to banking services much broader. parallel to new bank account creations.
Strategic operations: these include divesting its non-strategic assets. The Moroccan 64 Dimagaz Energy n.a. 84.29 n.a. n.a. n.a.
25 Inwi Corporate (Wana) Telecoms 1999 246.54 n.a. Mr. Karim Zaz wana.ma
privatizations, public-private partnerships, government might add extra boost to the market 65 Groupe CMCP Pulp paper 1949 82.76 6.26 Marc van Lieshout internationalpaper.com More specifically at BCP, the emphasis has always Growth from the Moroccan diaspora
26 Office National Eau Potable Public utility 1972 242.87 9.20 Ali Fassi-Fihri onep.ma
mergers and acquisit-ions, private placements, if it revives its privatization process, or issues 66 Asment Temara Construction 1976 82.36 n.a. Brahim Laraqui asment.co.ma been on increasing the number of account holders, The Moroccan diaspora has always been an
27 Somaca Automotive 1959 255.46 n.a. Larbi Belarbi See renault website
joint ventures, etc. tenders for expert financial support and advice. 67 Nestle Maroc Agro-food 1984 82.02 n.a. David Saudan nestlemaghreb.com the depth of penetration. Banking agencies have important part of the business of BCP Banque
28 Holcim Maroc Construction 1972 236.07 44.58 Dominique Drouet holcim.ma
been established in far-flung, remoter areas of the Populaire. BCP currently holds a more than 50%
29 Afriquia Gaz Energy 1959 229.68 21.92 Mr. Aziz Akhannouch akwagroup.com 68 Eaux Minerales d'Oulmes Agro-food 1933 81.02 n.a. Mohammed Bensalah oulmes.com
Shall we do a deal in Morocco? 30 Lesieur Cristal Agro-food 1940 229.14 10.19 Mr. Samir Oudghiri Idrissi lesieur-cristal.ma 69 MIFA Industrial 1947 79.96 7.13 Abdeslam Sijelmassi mifa.ma
country, be it in the less accessible mountainous market share in this important banking segment,
Upline Group, part of BCP bank since 2008, private equity ventures. MAD 7.5 billion at areas of the Atlas chain or in the deep south. since remittances from overseas Moroccans
31 CMH Energy 1976 226.55 n.a. Hassan Agzenai cmh.co.ma 70 Jet4You (TUI) Transport 2005 78.09 6.66 Karim Baina jet4you.com Unlike other banks, the BCP network is principally represent almost 10% of national GDP.
boasts of two decades of experience in various the end of 2011. Diverse risk/return portfolio
32 Ciments du Maroc Construction 1952 198.83 54.37 Mohamed Chaibi cimentsdumaroc.com 71 RADEEF Public utility 1969 77.56 7.60 Najib Lahlou Mimi radeef.ma outside of the major urban centers.
financial services. Here is how we can help your offers access to varied PE funds, including
financial needs in Morocco. infrastructure, tourism, real estate and others. 33 Managem Mining, energy 1930 191.63 18.72 Mr. Abdellaziz Abarro managem-ona.com
72 Toyota du Maroc Automotive n.a. 77.49 n.a. Adil Bennani toyota.co.ma BCP has pioneered this field since the late
34 Redal Public utility 2001 189.70 n.a. Olivier Dietsch veoliawater.com In addition to this traditional agency structure, 1960s, catering to the more than three million
1.Brokerage. Through personal advice and 4.Corporate finance. Through a team of 15 73 Maphar Pharma 1951 76.56 n.a. Patrice Fuster maphar.ma
35 SGTM Construction 1971 175.97 n.a. Ahmed Kabbaj sgtm-maroc.com there have been four innovative programs that Moroccans located throughout the world (see
an electronic trading platform, full access investment bankers, we offer the gamut of 74 Sews Cabind Maroc Automotive n.a. 76.29 n.a. n.a. sws.co.jp
to Moroccan financial exchanges. Regular investment banking services: debt and equity 36 Auto-Hall Automotive 1907 175.04 12.73 Abdellatif Guerraoui autohall.ma have proven successful for BCP: the low income sidebar on page 43). After obtaining a full
37 Alliances Developpement Real Estate 1994 174.04 n.a. Alami Lazraq alliances.co.ma 75 Gazafric Energy n.a. 76.29 n.a. n.a. gazafric.com banking program dedicated to a broad segment banking license for its French subsidiary, BCP
research and analysis notes to guide you. instruments, M&A, as well as privatizations.
38 Office National Aeroports Transport 1990 173.31 18.06 Dalil Guendouz onda.ma 76 RISMA Tourism 1993 75.76 n.a. Mr. Azzedine Guessous accor.com of the population; a program of banking services established antennae in the main EU countries.
2.Asset management. About MAD 20 billion 5. I nsurance brokerage. Our branch Chaabi for retirees, stuctured via the two largest national In parallel, clientele offerings were expanded to
39 COPAG Agro-food 1987 173.24 n.a. Mr. Moulay Loulttiti n.a. 77 Auto Nejma Maroc Automotive 1963 74.49 7.46 Mohamed Amal Guedira autonejma.ma
under management. Winner of the coveted Courtage offers life and non-life insurance.
40 North Africa Bottling Agro-food 2003 171.51 n.a. Samia Bouchareb cocacola.ma 78 IMTC Transport 1987 73.56 n.a. Mohamed Karia imtc.co.ma pension funds CNSS and CIMR; the launch eventually encompass not only the standard
Alistotmar Chaabi Treasury award. Sole Our clients include Maroc Telecom, Vivendi, OCP, 41 Ziz Carburants Energy 1968 170.18 n.a. Hachemi Aouni n.a. of Souk Bank, a initiative of mobile branches portfolio (savings, investment and assistance
Moroccan manager of a French fund. LabelVie, Axa, Autoroutes Maroc, ONCF, etc.
79 Sanofi-Aventis Maroc Pharma 1951 72.23 n.a. Patrice Fuster sanofi-aventis.ma
42 Petromin Oils Maroc Energy 1968 155.45 7.60 n.a. petrominoils.com that crisscross the souks (open-air markets) of products) but also new innovations. Islamic
3.Private equity. The leading partner in 80 Comanav Transport 1946 70.83 n.a. Taoufik Ibrahimi comanav-voyages.ma
the Kingdom for rural banking; and finally, the financial products are increasingly requested by
Further information on www.upline.co.ma
Source: Magazine Economie Entreprises, Les 500 Special Issue; Mediaside analysis involvement of the Banque Populaire Foundation this community abroad.

37 Doing Business in Morocco | 2012 Edition 38 Doing Business in Morocco | 2012 Edition 2012 Edition | Doing Business in Morocco 39 2012 Edition | Doing Business in Morocco 40
Morocco top 80
Corporate Finance Top 80 companies Banking penetration

More deals
Corporate finance is still a golden fleece,
Fund raising: from both private and institutional
investors, as well as traditional debt from banks
Financial engineering: for mega-projects, this
has included cost-benefit analysis and finance
companies at a glance Banking for all
Much of the growth of the Moroccan
Q&A
What are the strengths that have made Morocco
second-ranked in Africa in terms of FDI?
Many factors are contributing to my countrys
although things were better two years ago. structuring, as well as financial advisory and 2010 2010 2010 2010 banking system is due to increased access attractiveness. Good economic growth rates. A structured
set of government initiatives that are bearing fruit. Low
company valuation services. Year revenues profits CEO/ Year revenues profits CEO/ to banking services. Banque Centrale debt levels. The financial sector in Morocco is healthy and
T he market for corporate Rank Company Sector founded $M $M Managing Director Website Rank Company Sector founded $M $M Managing Director Website
Populaire (BCP), Moroccos second largest plays a key role in funding projects in key industries. Let
finance and investment In retrospect, 2011 was characterized by an unstable 1 OCP (Office Cherifien Phosphates) Mining, energy 1920 2,898.45 586.35 Mostafa Terrab ocpgroup.ma 43 Comp. Gen. Immobiliere Real Estate 1960 148.52 25.99 Mohammed Ali Ghannam cgi.ma
me cite tourism, energy, infrastructure, manufacturing,
banking services in Morocco regional geopolitical environment, and illiquid 2 SAMIR Energy 1959 2,467.35 55.70 Jamal Baamer samir.ma 44 Sopriam Automotive 1977 147.19 n.a. Loic Morin sopriam.ma
bank, explains their success. real estate and finally agriculture as examples.
is relatively young. It started stock and bond markets. This made fundraising 3 Maroc Telecom Telecoms 1891 2,124.53 662.91 Abdeslam Ahizoune iam.ma 45 Brasseries du Maroc Agro-food 1919 146.59 16.66 Pierre Castel brasseries-maroc.com

S
off in the mid-1990s, to operations difficult. Nonetheless last year witnessed everal factors contribute What is the role of BCP within the various
Mouhssine Cherkaoui 4 ONE (Office Nat'l Electricite) Energy 1963 1,390.92 n.a. Ali Fassi Fihri one.org.ma
46 Univers Acier Industrial 2002 142.32 n.a. Mohammed Azmi universacier.com government sector plans?
Administrateur Directeur
accompany privatizations and some sizeable operations worth mentioning: 5 Altadis Maroc Agro-food 1910 932.84 n.a. Larbi Bellaha imperial-tobacco.com to increased banking
initial public offerings on the beginning of SNI asset disposal, namely via the 47 Palmeraies Koutoubia Agro-food 1985 142.06 n.a. Tahar Bimezzagh koutoubia.net penetration. The first is We play an important role, formalized by various
Gnral, Upline 6 Afriquia Energy 1959 932.84 n.a. Ali Wakrim afriquia.ma
conventions signed between BCP and the government,
Casablanca Stock Exchange. sale of part of food processor Lesieur-Cristal to 48 Amendis Public utility 2001 141.52 n.a. Olivier Dietsch veoliaeau.com undeniably the densification
Corporate Finance 7 Royal Air Maroc Transport 1957 862.41 n.a. Driss Benhima royalairmaroc.com and bolstered by the fact that BCP is the only bank in
Sofiprotol and Moroccan institutional investors 8 Shell (Maroc) Energy n.a. 633.66 26.85 Mohamed Raihani shell.com 49 Yazaki Maroc Industrial 2000 138.26 n.a. Redouane Haribeche yazaki.com Rachid Agoumi of the banking network and its
Morocco to be rated investment grade by Standard
Things have evolved since, and the past decade three IPOs (Stroc Industry, Jet Alu and S2M) 50 Marsa Maroc Public utility 2006 139.19 27.32 Mohamed Abdeljalil sodep.co.ma Directeur Gnral, extension to remote areas that & Poors. Our key role in real estate deserves mention:
9 Marjane Holding Retail 1990 587.55 22.32 Mohamed El Amrani marjane.co.ma
has seen a good degree of maturing, as services capital increases (BCP and LabelVie) Banque Centrale had witnessed low banking usage we were leaders in setting up Fonciere Emergence, an
10 Total Maroc Energy 1926 515.39 n.a. Eric Gosse total.ma 51 SCBG Agro-food 1919 136.39 n.a. Pierre Castel n.a.
become more professional. A number of renown massive bond and negotiable debt security issues. Populaire levels. Proximity is a key lever for fund that owns various industrial assets and logistics
11 Douja Addoha Real Estate 1988 505.20 n.a. Anas Sefrioui groupeaddoha.com 52 Centr. Auto. Cherifienne Automotive 1929 133.80 n.a. Victor el Baz volkswagen.ma
financial institutions, including Upline Group (part banking services. To increase platforms, and then rents them to tenant companies.
12 Centrale Laitiere Agro-food 1929 544.64 38.45 Driss Bencheikh centralelaitiere.com 53 Acima Retail 2002 129.40 n.a. Mohamed Lamrani acima.ma
of Banque Centrale Populaire or BCP), have The sluggish regional and international context will this closeness-to-the-customer factor, several This reduces their capital needs.
accumulated a wealth of experience via two continue to influence market conditions in 2012. 13 Cosumar Agro-food 1929 387.13 38.45 Mohammed Fikrat cosumar.co.ma 54 Maghreb Steel Industrial 1975 128.86 n.a. Fadel Sekkat maghrebsteel.com banks set up so-called lightweight agencies, to
14 Medi Telecom Telecoms 1999 380.00 41.51 Mr. Mohamed Elmandjra meditel.ma BCP is actually part of Groupe Banque
decades of rich offerings. We should see a year of further consolidation and 55 Coficab Maroc Automotive 2001 118.94 n.a. n.a. coficab.com reduce investment costs, while simultaneously Populaire. Tell us more about the usefulness of
tightening liquidity. 15 Lydec Public utility 1997 378.00 n.a. Jean-Pierre Ermenault lydec.ma introducing other technology-intensive solutions.
56 Radeema Public utility 1971 116.00 15.26 Mustapha El Habti radeema.ma your regional branches.
Within corporate finance, the Moroccan scene has 16 Lafarge Ciments Construction 1928 356.74 111.87 Mohammed Kabbaj lafarge.ma
57 Disway Telecoms 2010 112.87 4.80 Hakim Belmaachi disway.com Structured as a cooperative bank, we have BCP as the
been most active for the following: Yet this will not prevent several important 17 Al Omrane Holding Real Estate 2004 332.89 19.79 Najib Larraichi alomrane.ma Another key growth driver was provided by
58 Nexans Maroc Industrial 1947 108.74 n.a. Frederic Vincentr nexans.ma central hub and ten regional banks as spokes around
Capital markets: here the twin drivers are corporations from raising funds for ongoing 18 Jorf Lasfar Energy Energy 1997 326.09 34.25 Abdelmajid Iraqui Houssaini jlec.ma changes in the regulatory environment. For a it. This gives us a nationwide footprint, and a deep
activities on the stock market and the private debt growth. For some, it will mean opening their capital 19 Label' Vie Retail 1985 325.69 n.a. Zouhair Bennani labelvie.ma 59 Les Grands Travaux Routiers Construction n.a. 107.14 n.a. Jean-Yves Leborgne colas.com long time, the minimum income requrements set understanding of regional competitive advantages. In
market. For the former, the usual suspects have to institutional investors and investment funds. 20 Petrole du Maghreb Energy 1945 279.92 n.a. Ahmed Bouaida n.a. 60 Autoroute du Maroc Public utility 1989 105.74 n.a. Othmane Fassi-Fihri adm.co.ma for opening an account was a major obstacle, turn, this has helped many a foreign direct investor.
been IPOs, secondary market share issues, and For others, it will imply access to capital markets 21 Renault Maroc Automotive 1928 277.05 n.a. Jean Frederic Pioti renault.ma 61 Global Engines (Hyundai) Automotive 2000 93.28 7.40 Khalil al Sheikh hyundai.ma since much of the population was excluded. The
other share-related transactions. For the latter, via bonds and negotiable debt securities. Lastly, 22 Societe Nationale Siderurgie Industrial 1974 274.19 n.a. Ayoub Azami sonasid.ma impulse given by the Moroccan Central Bank
62 Cooper Pharma Pharma 1933 87.55 n.a. Ayman Cheikh Lahlou cooperpharma.ma
the market has seen the issuance of company some players might restructure their debt, namely 23 Libya Oil Maroc Energy 1993 272.39 n.a. Ezzedin Manyouni oilibya.com (Bank Al Maghrib) for low income banking in 2010 for the development of micro-credit lending, in
63 Laprophan Pharma 1949 86.62 n.a. Hassan Bennis laprophan.com
bonds and other financing instruments overleveraged actors. Moreover, SNI will continue 24 Salam Gaz Energy 1991 255.66 8.60 Abdelkader Benbekhaled salamgaz.ma made access to banking services much broader. parallel to new bank account creations.
Strategic operations: these include divesting its non-strategic assets. The Moroccan 64 Dimagaz Energy n.a. 84.29 n.a. n.a. n.a.
25 Inwi Corporate (Wana) Telecoms 1999 246.54 n.a. Mr. Karim Zaz wana.ma
privatizations, public-private partnerships, government might add extra boost to the market 65 Groupe CMCP Pulp paper 1949 82.76 6.26 Marc van Lieshout internationalpaper.com More specifically at BCP, the emphasis has always Growth from the Moroccan diaspora
26 Office National Eau Potable Public utility 1972 242.87 9.20 Ali Fassi-Fihri onep.ma
mergers and acquisit-ions, private placements, if it revives its privatization process, or issues 66 Asment Temara Construction 1976 82.36 n.a. Brahim Laraqui asment.co.ma been on increasing the number of account holders, The Moroccan diaspora has always been an
27 Somaca Automotive 1959 255.46 n.a. Larbi Belarbi See renault website
joint ventures, etc. tenders for expert financial support and advice. 67 Nestle Maroc Agro-food 1984 82.02 n.a. David Saudan nestlemaghreb.com the depth of penetration. Banking agencies have important part of the business of BCP Banque
28 Holcim Maroc Construction 1972 236.07 44.58 Dominique Drouet holcim.ma
been established in far-flung, remoter areas of the Populaire. BCP currently holds a more than 50%
29 Afriquia Gaz Energy 1959 229.68 21.92 Mr. Aziz Akhannouch akwagroup.com 68 Eaux Minerales d'Oulmes Agro-food 1933 81.02 n.a. Mohammed Bensalah oulmes.com
Shall we do a deal in Morocco? 30 Lesieur Cristal Agro-food 1940 229.14 10.19 Mr. Samir Oudghiri Idrissi lesieur-cristal.ma 69 MIFA Industrial 1947 79.96 7.13 Abdeslam Sijelmassi mifa.ma
country, be it in the less accessible mountainous market share in this important banking segment,
Upline Group, part of BCP bank since 2008, private equity ventures. MAD 7.5 billion at areas of the Atlas chain or in the deep south. since remittances from overseas Moroccans
31 CMH Energy 1976 226.55 n.a. Hassan Agzenai cmh.co.ma 70 Jet4You (TUI) Transport 2005 78.09 6.66 Karim Baina jet4you.com Unlike other banks, the BCP network is principally represent almost 10% of national GDP.
boasts of two decades of experience in various the end of 2011. Diverse risk/return portfolio
32 Ciments du Maroc Construction 1952 198.83 54.37 Mohamed Chaibi cimentsdumaroc.com 71 RADEEF Public utility 1969 77.56 7.60 Najib Lahlou Mimi radeef.ma outside of the major urban centers.
financial services. Here is how we can help your offers access to varied PE funds, including
financial needs in Morocco. infrastructure, tourism, real estate and others. 33 Managem Mining, energy 1930 191.63 18.72 Mr. Abdellaziz Abarro managem-ona.com
72 Toyota du Maroc Automotive n.a. 77.49 n.a. Adil Bennani toyota.co.ma BCP has pioneered this field since the late
34 Redal Public utility 2001 189.70 n.a. Olivier Dietsch veoliawater.com In addition to this traditional agency structure, 1960s, catering to the more than three million
1.Brokerage. Through personal advice and 4.Corporate finance. Through a team of 15 73 Maphar Pharma 1951 76.56 n.a. Patrice Fuster maphar.ma
35 SGTM Construction 1971 175.97 n.a. Ahmed Kabbaj sgtm-maroc.com there have been four innovative programs that Moroccans located throughout the world (see
an electronic trading platform, full access investment bankers, we offer the gamut of 74 Sews Cabind Maroc Automotive n.a. 76.29 n.a. n.a. sws.co.jp
to Moroccan financial exchanges. Regular investment banking services: debt and equity 36 Auto-Hall Automotive 1907 175.04 12.73 Abdellatif Guerraoui autohall.ma have proven successful for BCP: the low income sidebar on page 43). After obtaining a full
37 Alliances Developpement Real Estate 1994 174.04 n.a. Alami Lazraq alliances.co.ma 75 Gazafric Energy n.a. 76.29 n.a. n.a. gazafric.com banking program dedicated to a broad segment banking license for its French subsidiary, BCP
research and analysis notes to guide you. instruments, M&A, as well as privatizations.
38 Office National Aeroports Transport 1990 173.31 18.06 Dalil Guendouz onda.ma 76 RISMA Tourism 1993 75.76 n.a. Mr. Azzedine Guessous accor.com of the population; a program of banking services established antennae in the main EU countries.
2.Asset management. About MAD 20 billion 5. I nsurance brokerage. Our branch Chaabi for retirees, stuctured via the two largest national In parallel, clientele offerings were expanded to
39 COPAG Agro-food 1987 173.24 n.a. Mr. Moulay Loulttiti n.a. 77 Auto Nejma Maroc Automotive 1963 74.49 7.46 Mohamed Amal Guedira autonejma.ma
under management. Winner of the coveted Courtage offers life and non-life insurance.
40 North Africa Bottling Agro-food 2003 171.51 n.a. Samia Bouchareb cocacola.ma 78 IMTC Transport 1987 73.56 n.a. Mohamed Karia imtc.co.ma pension funds CNSS and CIMR; the launch eventually encompass not only the standard
Alistotmar Chaabi Treasury award. Sole Our clients include Maroc Telecom, Vivendi, OCP, 41 Ziz Carburants Energy 1968 170.18 n.a. Hachemi Aouni n.a. of Souk Bank, a initiative of mobile branches portfolio (savings, investment and assistance
Moroccan manager of a French fund. LabelVie, Axa, Autoroutes Maroc, ONCF, etc.
79 Sanofi-Aventis Maroc Pharma 1951 72.23 n.a. Patrice Fuster sanofi-aventis.ma
42 Petromin Oils Maroc Energy 1968 155.45 7.60 n.a. petrominoils.com that crisscross the souks (open-air markets) of products) but also new innovations. Islamic
3.Private equity. The leading partner in 80 Comanav Transport 1946 70.83 n.a. Taoufik Ibrahimi comanav-voyages.ma
the Kingdom for rural banking; and finally, the financial products are increasingly requested by
Further information on www.upline.co.ma
Source: Magazine Economie Entreprises, Les 500 Special Issue; Mediaside analysis involvement of the Banque Populaire Foundation this community abroad.

37 Doing Business in Morocco | 2012 Edition 38 Doing Business in Morocco | 2012 Edition 2012 Edition | Doing Business in Morocco 39 2012 Edition | Doing Business in Morocco 40
Fundamentally
sound
With more than $26 billion in assets, Moroccos
banking system is well-capitalized and growing
fast. The countrys strategy is to become
the dominant regional platform, thanks to
conservative monetary policies and banking
regulations, as well as expansive outbound tactics.

Banking innovations include mobile services in open air markets and talking

M orocco has a healthy interest in its financial


sector. The countrys political stability and
low risk levels have meant a steady increase in the
ATMs for the illiterate.

During phase one, from 1961 to 1993, nationalized


importance of the financial industries within the banks were transformed to privately held ones.
overall economy. Phase two, from 1993 to 2006, was kicked off by
a new Banking Decree (Nouvelle Loi Bancaire of
In July 2011, the IMF noted that assets in the banking 1993), that loosened banking regulation by shifting
sector exceeded 120% of GDP, compared to 109% to indirect regulation. Monetary regulations were the
in 2007 and 81% in 2003. Financial services share norm, namely covering interest rates, banking ratios
of GDP has risen with overall economic growth, for and monetary policy. Some banks disappeared (e.g.
example increasing from 17.5% in 2005 to 20.4% of BNDE because of poor management). Other banks
GDP in 2009. were privatized. Some small foreign banks (namely
Spanish ones) disappeared. This phase also saw the
Banking was not always such a sweet business introduction of universal banking rules (Basel I and
here though. Until 1961, banking was a controlled, II), including risk assessments and liquidity ratios.
statist activity, with few actors and tight regulations, This phase also witnessed the end of mandatory
explains Hassan el Basri, president of the Moroccan employment rules, which had saddled banks with
Banking Federation (part of CGEM, the employers inappropriate human resources. In the 1990s,
organization). In 1961 a progressive restructuring allowance was made for foreign banks to own
was initiated. One can distinguish between three 100% of banking assets. That is when BNP Paribas
phases in banking development since then. France bought its share of BMCI, Credit Agricole

Moroccos top 8 banks by revenues


Rank Name Founded Rev. 2010* CEO Website
1 Attijariwafa bank 1911 1,715.4 Mohamed El Kettani attijariwafabank.com
2 BCP (Banque Centrale Populaire) 1961 1,175.3 Mohamed Benchaaboun gbp.ma
3 BMCE (Banque Mar. Commerce Extrieur) 1959 883.3 Othman Benjelloun bmcebank.ma
4 BMCI (Banque Mar. Commerce Industrie) 1943 464.8 Jacques Ardent bmci.ma
5 Socit Gnrale 1913 422.6 Albert Le Dirac'h sgmaroc.com
6 Crdit du Maroc 1929 233.9 Pierre Louis Boissiere cdm.co.ma
7 Credit Immobilier Hotelier 1920 176.1 Ahmad Rahhou cih.co.ma
8 Arab Bank PLC 1961 16.1 Abdel Hamid Shoman arabbank.ma
*Figures in $M Source: Economie Entreprises, Mediaside analysis

42 Doing Business in Morocco | 2012 Edition


Banking

Insight
Stimulus from abroad
With about 3.3 million Moroccans living abroad, the country
can count on its diaspora for beneficial financial impact, and
more. According to the governments Office des Changes,
about $6.8 billion of inward remittances from Moroccans
abroad flowed into the country in 2011.
Yet cold cash is not the only benefit derived from the
diaspora. Moroccans residing abroad are key in transferring
skills acquired through formal education, training and
professional experience. The diaspora is also entrepreneurial,
setting up businesses in their host countries, landing
contracts and sometimes opening up subsidiaries
in Morocco. There are also the homecoming micro-
entrepreneurs, who open up often small businesses upon
returning home, for retirement or other reasons.
Through this strong network of human, cultural and
economic ties, the diaspora has proven a key contributor to
France bought its share of Credit du Maroc, and
Moroccos growth, and an important window onto the world.
Societe Generale France bought its share of Societe
Generale Maroc. By Prof. Imane El Ghazali, ESCA School of Management

Thirdly, in 2006 another banking reform law shifted all Morocco has a dense banking infrastructure with
regulatory powers to the Moroccan Central Bank, or 21 commercial bank branches per 100,000 people.
Bank Al-Maghrib, although technically the Ministry of By comparison South Africa, which has one-and-a
Finance still rubber stamps their decisions. half-times the population of Morocco, has ten bank
branches per 100,000 people.
The Bank Al-Maghrib was founded in 1959 and
is based in Rabat. In June 2010 (the latest figures Growth factors
available) it held net foreign reserves of $18 billion. Moroccan banking has been active, yet conservatively
In addition to currency management, the bank also so, due mostly to two factors. Firstly project finance
supervises a number of privatized banks supplying has had an important impact on banking growth,
retail services. says Hassan El Basri. As of the 2000s, private sector
financing was introduced for large-scale projects,
Three majors namely in the energy sector. These projects used to
Today the Moroccan banking sector is dominated be 100% financed by foreign institutions, such as
by three major local banks: Attijariwafa bank, BCP the World Bank, the European Investment Bank and
(Banque Centrale Populaire) and Banque Marocaine the African Development Bank. Other large projects
du Commerce Exterieur. The three major banks held were in the areas of telephony, particularly mobile
around 80% of total assets in 2011. networks, as well as tourism and infrastructure.

There are 76 financial institutions in the country A second important growth factor, proceeds Mr. El
including 16 commercial banks, 37 financing Basri, was penetration of banking infrastructure and
companies, six offshore banks, and 14 micro-finance services among the public. In 2000, less than 40% of
associations. Moroccan banks have kept clean the population had bank accounts, now about 60% do.
balance sheets with low levels of bad debt, despite Accompanying and driving the account proliferation
the growth in their lending portfolios. Non-performing has been the opening of new bank agencies.
loans represented 5% of total loans in 2011. Within
the portfolios of the six publicly traded banks, on Another growth vector has been the development of
the aggregate, four categories of loans represent lower-income banking, in particular the Al-Barid Bank,
almost three-quarters of the total: household loans, the banking branch of the post office. Al-Barid was
manufacturing, construction and finance. launched in 2010 to provide basic banking services to

2012 Edition | Doing Business in Morocco 43


those with modest incomes. It has agencies in 1,800 fund, Fonciere Emergence. As for retail banking,
post office branches and aims to have six million there have been many initiatives to boost account
customers by 2013. penetration (bancarisation in French) among the
population. Banque Populaire (BCP) has introduced
Elsewhere, Moroccan banks are competing for the a well-received mobile banking unit that appears
business of Moroccans living abroad, helping them at weekly open-air markets throughout rural areas.
transfer money to Morocco and invest in the country. Morocco also has talking ATMs, that enable illiterate
France accounts for 41% of remittances from customers to perform basic banking operations. A
Moroccans living in Europe while Spain accounts for final word on Islamic banking. Although still nascent
10%. Deposits held in Morocco by Europe-based in Morocco, various new regulations should assist in
immigrants stood at $15 billion in 2010, about 20% of its development over the next years.
total national banking deposits.
For more information:
To foster expansion, there have been many banking Moroccan Ministry of Economy and Finance
innovations, such as agences legeres, or agencies www.finances.gov.ma
staffed by two employees. Industrial investments are Bank Al Maghrib www.bkam.ma
no longer subject to property purchasing taxes (charge Federation of Banks - Mr Hassan El Basri
fonciere), which are now carried by a government www.cgem.ma (click on Federations Sectorielles)

Regional Banking Platform


Building a financial hub
Capitalizing on its banking strength, Moroccos main financial players (banks, insurance companies, the stock ex-
change) are now building Casablanca Finance City, a regional hub similar to financial centers in Dubai and Qatar.
Along with industrial developments, such as automotive and headquarters for financial and non-financial firms active in
aeronautics, Morocco sees the potential for developing a other countries.
strong regional financial platform. To ensure the success of the venture, partnerships have
With launch funding of $14.1 million, the Moroccan Financial been signed with the Singapore Cooperation Enterprise and
Board will manage and promote Casablanca Finance City Luxemburg for Finance. CFC wants to emulate the key success
(CFC) as a regional financial hub and gateway into the African factors of the 40-year old Singaporean model. Areas of
markets, just as the Dubai International Finance Centre offers cooperation include the institutional and regulatory framework,
a portal for Persian Gulf financing. optimizing legal frameworks for capital markets, and improving
The ventures shareholders include the creme de la creme the ease of doing business. The link-up with Luxemburg for
of Moroccan finance, including the three leading banks, the Finance, the Grand Duchys finance promotional arm, covers
Central Bank and CDG, several insurance companies, the both mutual business development and training.
stock exchange, and others. CFC will offer favorable tax CFC will be located on a new site covering 100 hectares on
advantages similar to those for the national free trade or the old Anfa airport. Construction will be in phases and is
nearshoring zones. In April 2010, the Moroccan government expected to deliver a total of 1.4 million square meters of
appointed Said Ibrahimi to head the CFC project. mixed-use space (40% office, 40% residential, 20% other),
Although it is still early in the game, CFC has already signed so that CFC becomes an urban destination, not a financial
its first six tenants and is in advanced discussions with ghetto. CFC will also include a large park. After its success
another 20 partners. The types of tenants CFC is targeting developing its industrial sector, Moroccos financial sector ball
are financial and professional services, as well as regional is rolling.

Financial Center Location Founded CEO Website


CFC Casablanca 2010 Said Ibrahimi mfboard.com

DIFC Dubai 2002 Addullah Saleh difc.ae

QFC Qatar 2005 Shashank Srivastava qfc.com.qa

44 Doing Business in Morocco | 2012 Edition


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SUCCESS STORY
Attijariwafa bank heads into Africa
Moroccos top bank, Attijariwafa bank, has been following a progressive and successful southbound expansion into
the heart of Africa. The banks director of international retail operations provides his insights.

Born in 2004 from the merger of


Wafabank and the Commercial Bank
of Morocco, Attijariwafa bank is both
young and dynamic, and steeped in the
By Mohammed Krisni traditions and business networks of its
Managing Director founding banks, created in 1906 and
International Retail 1911 respectively.
Operations
Attijariwafa bank Group Barely a year after the merger dust had
settled, Attijariwafa embarked on its
international expansion. The Moroccan borders were becoming
too small for us! Our first step was in Europe, where our
credentials helped us obtain a full banking license.
Immediately thereafter, we set our focus on Africa both
our natural backyard of Maghreb North African countries, and
the farther-flung UEMOA and CEMAC countries of West and
Central Africa.
(UEMOA), and as a bonus landed a foothold in Guinea-Bissau.
Since 2005, we have grown this African foot print to cover 11 In the case of the Crdit Agricole subsidiaries, our strategic
countries (out of the 19 in the zone). By the end of 2011, we thinking was to acquire a basket of country operations, since
employed 4,905 staff in 503 agencies, handling 1.4 million that deal involved banks in Senegal, Cote dIvoire, Cameroon,
client accounts. Gabon and the Congo.
The goals of our international development are four-fold. Firstly, For us, greenfield growth does also exist, for example in
we realize that the penetration of banking services in many Burkina Faso, in Mauritania, and via our representative office
African countries is still low. We have been a key actor in this inLibya.
effort in Morocco, where penetration levels rose substantially
One of our key considerations in our acquisitions is to ensure
in the past ten years. Secondly, we realize that an increasing
smooth transitions with existing staff and managers. We
number of companies and institutions need pan-African banking
transfer our best practices within our new operations be it
services, through a broad-based network. We wish to maintain
in the sales and marketing areas, in back office and systems,
our leadership as the foremost francophone-based bank.
or in personnel training at our Casablanca headquarters. We
Thirdly we have developed unique expertise in project finance,
also adopt relevant expertise from our local brethren. After
namely for infrastructure projects, and we wish to capitalize on
completing a deal, we usually establish a 12- to 18-month
this beyond Moroccan borders. Lastly, we see higher growth
roadmap for the integration.
opportunities in some countries than at home.
Attijariwafa bank in ten years?
Do we grow opportunistically? Yes and no.
Within the realm of African banks, we are currently ranked sixth
Some of our pan-African growth has been via acquisitions.
by assets, after four South African and one Egyptian bank.
Other countries have been greenfield launches. We often
Our vision is ambitious and we expect to continue growing in
operate in stages, with our growth matching the preparedness
geographic scope and in the breadth of our service offerings.
of the country, or the opportunities that appear.
We certainly look forward to accompanying the Moroccan
For example, in Mali (where I served as CEO), we acquired financial authorities as they develop an African financial
existing players. In Senegal, on the other hand, we progressed platform based in Morocco (Casablanca Financial Center).
in phases. Phase one was the banking license. Phase two
in January 2007 was the purchase of 67% of BST bank, and For more information:
then 79% of CBAO bank in April 2008. We thus created the Ibtissam Abouharia: i.abouharia@attijariwafa.com
leading bank in the West African Economic and Monetary Union Head of Financial Information and Investor Relations

46 Doing Business in Morocco | 2012 Edition


ATTIJARIWAFA BANK
ELECTED BEST BANK IN MOROCCO FOR 2011

International experts from the prestigious rating organizations : The Banker , Global Finance
and Capital Finance International have elected Attijariwafa bank as Best Bank in Morocco for 2011.
AWAR
NK D
BA

The Group is thus being rewarded for its high performance and for its sound development strategy.
T

20
BES

12

AFRICA While this is an umpteenth recognition for the hard work of its 15,000 employees, it is also, and
www.attijariwafabank.com
AWARD

above all, a demonstration of the renewed confidence of its clients and partners alike.
Casablanca
bourse on
the rebound
Casablanca hosts Africas second-largest
stock market after Johannesburg despite
restrictions on the financial instruments it
The Casablanca Stock Exchange is now the second largest African bourse.
can trade. The bourses growth prospects
are looking good. More recently, improvements have included the
reduction of the trade settlement period from T+5 to
T+3 (May 2001); the relocation of electronic-based

T he stock exchange in Casablanca was established


in 1929. At that time, it was known as the Office de
Compensation des Valeurs Mobilires, or the Office
trading to brokerage firms trading rooms (January
2001); the introduction of new indices and weighting
methods; and the establishment of five different types
for Clearing of Transferable Securities. of quotation markets, including three equity markets,
the bond market and the funds market (April 2004).
Until 1967, the stock market saw relatively sluggish Lastly, new listing requirements were introduced in
growth due to stifling restrictions, namely on currency January 2005.
exchanges. To overcome such shortcomings, reforms
were undertaken in that year to provide Moroccos Ownership and governance
financial markets with a well-organized legal and The CSE is a joint stock company (socit anonyme)
technical framework. with a board of directors and a supervisory board. CSE
reports to the Ministry of Finance and Privatization,
Another phase of growth occurred after Morocco and operates under well-defined terms of reference
completed its structural adjustment program (1986 while complying with a set of rules known as General
to 1996), which consolidated macro-economic Rules. CSE is jointly owned by the 17 brokerage firms
fundamentals and successfully brought under operating in the marketplace, and has a share capital
control its high level of debt and inflation. Part of of $2.2 million.
this program, in 1993, laid the groundwork for the
modern bourse, establishing a regulatory agency, There are currently 81 companies listed on the CSE,
as well as accrediting brokerage firms and creating representing a market capitalization of $67.7 billion
a private company responsible for its management. at the end of 2010. In 2010 two new companies
This became the Casablanca Stock Exchange (CSE) were listed, and in 2011 the number rose to four
in 2000. companies. Traditionally, banking and telecoms have

Trading in African equities


Comparison of top African stock exchanges
Stock market name Year Founded Cos listed CEO Website
Casablanca stock exchange 1929 81 Karim Hajji casablanca-bourse.com
Johannesburg Stock Exchange 1887 410 Nicky Newton-King jse.co.za
The Egyptian Exchange (Cairo) 1883 214 Mohamed Omran egx.com.eg
Source: Mediaside analysis

48 Doing Business in Morocco | 2012 Edition


Capital Markets

To attain this goal, the CSE management is on


continuous road shows throughout the kingdom,
meeting with companies to present the advantages
of the stock exchange. Mr. Hajjis schedule includes
meetings with at least half a dozen companies each
week around Caravane de la Bourse.

Another goal for the CSE is to reach half a million


investors (i.e. individuals holding shares, as opposed
to institutional investors) by 2015. To meet this goal,
the CSE team is holding seminars and classes,
either for a general public or for targeted financial
actors. Until that target is reached, the CSE relies
predominantly on institutional investors (70%) for its
trading activity. Individual investors and foreigners
contribute about 15% of market volume each.

been the strongest equity sectors on the market. Aside from new listings, the CSE growth comes
Recently, companies in the infrastructure activities, from additional cross-listings between countries.
such as housing, construction and real estate, have For example in 2010 Tunisian car distributor Ennakl
made strong showings, reflecting the countrys heavy Automobiles listed on both the Tunis and Casablanca
investment priority for infrastructure. exchanges. There is similar interest from companies
south of Morocco with less developed equity markets,
Here, the companies are often more recent for example Senegal or Guinea. CSE can also count
creations, with more open-minded managers having on secondary listings from already-traded companies
larger capital needs, so the CSE is a natural source of to raise additional financing from the stock market.
funds for their investments, explains CSE President
Karim Hajji. Obstacles to growth
The CSE does face some obstacles on its path to
Most of the trading is of shares (equity markets), growth. Morocco weathered the 2008 financial
which represents 91% of the volume. The remainder storm quite well since it had little exposure to the
of the trading is in the bond market. CSE does not yet risk-laden instruments, but there is wariness vis-a-vis
offer currency trading, mostly because the Moroccan more sophisticated instruments, explains Mr. Hajji.
dirham is not freely exchangeable. But there is a desire to start trading currencies and
develop the bond market.
Growth by several means
The number of companies listed on the CSE has seen One of the nagging issues for the CSE is that of
relatively slow growth. In Morocco we face several liquidity. There is pent-up demand for further trading
difficulties in convincing companies to list their shares capabilities, yet we are bound by tight regulations and
publicly, as explains Mr. Hajji. Foremost is probably are hampered by high P/E ratios for our Moroccan
the fact that top management is not yet used to the equities, laments Mr. Hajji. This discourages many
loss of confidentiality, and some sharing of decision- investors. With not enough paper to go around, prices
making. Many old school owners are control freaks on the stock market are quite high.
who do not wish to share.
Another restriction is that Moroccan pension funds
Nonetheless, CSEs ambitious growth target is to can only invest up to 10% of their holdings abroad,
have 150 companies listed by 2015. Given recent adding to upward pressure on domestic equity
performance, the CSE management is confident. pricing. But this may be resolved when changes to
In 2010, the MASI index, one of two stock indices the financial rules take effect in 2014 or 2015.
that track companies listed on the CSE, rose by
21%, and the volume of transactions rose by 65%, For more information:
reaching $14 billion over the year. This means that Casablanca Stock Exch. www.casablanca-bourse.com
after the 2009 slump, the CSE is almost back to its (Full digital annual report available to download)
pre-crisis level. Economy and Finance Ministry www.finances.gov.ma

2012 Edition | Doing Business in Morocco 49


Insurance
faces bright
prospects
Moroccan insurance has plenty of domestic
potential, namely because of a new
government framework regarding health
coverage. The non-life sector leads but the
much smaller life insurance sector presents Indeed, automotive insurance is the driver of the Moroccan insurance sector.

opportunities as well. 2011 revenues of $1.9 billion, up from $1.77 billion the
year before.

D espite the global economic downturn, the


Moroccan insurance sector is performing well. At
the end of 2011, private insurance companies earned
Within non-life, automotive is by far the largest
segment, accounting for 47% of premium revenues
($875 million in 2011), up 6.4% over 2010. The
$2.8 billion in revenues from customer premiums, an remainder of non-life is split between casualty and fire
increase of 9.2% over 2010. Nevertheless, the growth premiums, representing shares in the non-life sector
rate was lower than that prior to the recession. of 16.9% and 11.9% respectively.

We are the largest Arab market, with the greatest Life insurance booms
degree of sophistication and maturity, explains Although the life insurance sector and related capital
Bashir Baddou, managing director of the National products is much smaller than non-life, it is showing
Insurance Federation (Federation Nationale de promising signs. Life and capital posted double-digit
lAssurance). We even have a re-insurance company growth between 2010 and 2011, after poor performance
and quality offerings. in 2009-2010. The 15.9% boost in 2011 means the
segment now totals premium revenues of $890 million.
Non-life carries the sector
The current growth in insurance comes primarily from Life insurance has significant future potential. For
the non-life segment, which includes automotive, the past two years, Morocco has committed itself
fire and casualty. Almost 70% of insurance premium to a policy of revitalizing its long-term savings.
revenues comes from the non-life sector, representing New financial products have been introduced and

Public insurance at the top


Top Moroccan insurance companies
Rank Company Year Founded Rev. 2010* CEO Website
1 CNSS (social security) 1959 2,008.8 Said Ahmidouch cnss.ma
2 RCAR 1977 1,098.0 Moulay Cherkaoui rcar.ma
3 CIMR 1949 573.9 Khalid Cheddadi cimr.ma
4 Wafa Assurances 1972 526.2 Mohammed Arroub wafaassurance.ma
5 RMA Watanya 1949 520.2 Zouheir Bensaid rmawatanya.com
* Figures in $M Source: Economie Entreprises Les 500, Mediaside analysis

50 Doing Business in Morocco | 2012 Edition


Insurance

government and public and private insurance sector


actors. According to the objectives of the partnership
agreement, 90% of the population will be subject to
compulsory health insurance and 50% will require
independent health care insurance.

The agreement is expected to provide an additional


boost to the insurance sector. It involves extending
the coverage of people and goods, improving the
quality of services and services, contributing more
to the financing of economic activity, strengthening
the sectors presence abroad, and consolidating the
insurance companies financial basics. In all, no less
than 70 measures were defined in the contractual
framework between business operators and the
nine ministries involved in creating the program
contract. Among these measures, the extension of
minimum coverage for people and property and the
improvement of the quality of benefits and services
innovative tax incentives are on offer. Never before has are key elements for insurance companies.
so much interest been given to encourage savings.
These are fertile waters for both life insurance and Foreign markets
financial capitalization products. Through its major shareholder group Saham, CNIA
Saada has expanded its presence to 11 African
The market leader for life insurance in Morocco is countries after the takeover of Collina. Wafa Insurance
Wafa Insurance, owned by Moroccos largest bank, has obtained the necessary permits to operate in
Attijariwafa bank. Wafa Insurance dominates the life Tunisia.
and capitalization segment, with 36.7% market share,
claiming premium revenue of $325 million in 2011, up In 2011, Wafa created a joint venture with French
25.1% over 2010. company Inter Mutuelles Assistance to create a pilot
project that could open the African gates. Societe
This performance was driven by increased demand dAssistance Maroc, the joint venture vehicle, targets
for the savings products offered by the so-called non-resident Moroccans and African expatriates. With
bancassurance companies. These are financial a target potential representing several hundred million
companies allowed to sell both banking and insurance dollars, it is also considering options in the Algerian
services to their clientele. In this case Wafa Insurance market as well as several sub-Saharan countries, where
used the much bigger Attijariwafa banks extensive it could benefit from the presence of Attijariwafa bank.
network of agencies and sales representatives to
market their bancassurance products. Market threats also exist for Moroccan insurance.
According to some professionals, these threats
Alas, life and capitalization insurance seems to be include increased competition as new entrants
a zero-sum game. Wafa Insurances double-digit arrive, as well as the implications of the Solvency II
growth is offset by declines at competing insurers Directive on the use of retained earnings to reduce
such as RMA Watanya or CNIA Saada. The decline in the risk of insolvency.
bancassurance premium revenues for some players
is explained by their decisions to exit insurance-as- Nonetheless, the overall prospects seem bright as
savings products in favor of non-life products whose the market expands and additional services are
performance is steady. introduced.

Program contract For more information:


Not only was 2011 marked by financial growth for Moroccan insurance federation (Fdration Marocaine
the 17 companies active in the private insurance des Socits dAssurances et de Rassurance)
sector, but also by the implementation of the www.fmsar.org.ma
Program Contract, signed in 2010 by the Moroccan Caisse Nationale de Scurit Sociale www.cnss.ma

2012 Edition | Doing Business in Morocco 51


Moving
the goods
Economic growth means more freight traffic.
But while Moroccos shipping and rail sectors
are up to the task, its road sector has a way
to go before it can meet the countrys growing
transport demands.

M oroccos freight needs are met


primarily by road and sea. The
countrys harbors are key to the
import and export of manufactured Most Moroccan trucks are a bit older than this one.
goods, whereas the roads are vital
Omar El Kadiri
for domestic demand and for certain divided highways from 600 kilometers in 2005 to 1,400
CEO, Globex/Fedex
exports such as agricultural produce. in 2010. This has been financed via public-private
partnerships and toll systems for intercity stretches.
But Moroccos inefficient allocation of transport
resources makes for excessive transport costs. The remaining 27,000 kilometers of roads are
According to the Moroccan road transport mostly unpaved. The transport ministry, however,
association (FNTR), these costs account for an has embarked on a paving program partly linked to
estimated 20% of GDP. With more efficient logistics the development of agricultural clusters (agropoles)
and warehousing, the cost of logistics could drop to requiring an efficient connection to the supply chain.
15% of GDP by 2015.
Moroccos road transport industry is fractionalized.
Fortunately Morocco recognizes the importance of According to the transport ministry, nearly 837,000
having a good transport infrastructure for economic commercial vehicles were registered in 2011. The
development. This is shown in its five-year national plan road haulers association (FNTR) states that 56,600
for 2008-2012 which calls for investments of $18 billion. vehicles are registered with their members but most
The next five-year plan will continue that effort. of these are more than 14 years old and 90% of their
member companies have three or fewer vehicles.
Roads
According to the Ministry of Equipment and Transport, Morocco plans to make the sector more efficient
Morocco has 60,000 kilometers of roads, of which by re-structuring the larger professional entities,
33,000 are paved. It has increased the network of the small and mid-sized entities, and the informal

Leaders of the pack


Top Moroccan transport companies in comparison
Rank Company Activity Founded Revenues $M CEO Website
1 Royal Air Maroc Airline 1957 1,513.7 Driss Benhima royalairmaroc.com
2 Jet4You Airline 2005 137.1 Karim Baina jet4you.com
3 IMTC Sea freight 1987 129.1 Karia Mohamed imtc.co.ma
4 Comanav (CMA-CGM) Sea 1946 124.3 Taoufik Ibrahimi cma-cgm.com
5 SNTL Logistics 2007 94.5 Oussama Loudghiri sntl.ma
Note: All financial data is for 2011 unless otherwise stated, Source: Federation of Banks, Al-Maghrib Bank

52 Doing Business in Morocco | 2012 Edition


Transport

Insight
Rationalizing transport
The Moroccan Agency for the Development of Logistics
(Agence Marocaine de Developpement de la Logistique
or AMDL) was initiated in 2011 as a semi-independent
agency of the Ministry of Transport. AMDL coordinates
different companies in the transport and logistics sectors:
warehousing owners, freight forwarders, transport
companies, and owner-operators.
By 2015, AMDL plans to make available total warehousing
and logistics platform space of 2,080 hectares (eventually
3,300 ha) and 70 logistics platforms in 18 cities nationwide.
The objective is to rationalize the road freight transport
segment, which is currently inefficient. The new measures
of efficiency include a lowering of transport costs as a portion
of GDP, meaning lower prices and greater competitive
advantage for export goods, as well as lower CO2 emissions.
owner-operator entities that operate at a loss by
offering below-operating cost services. Ports
With about 3,500 kilometers of coastline on the
Rail Mediterranean Sea and Atlantic Ocean, Morocco has
In contrast to the road system, Morocco has the most 26 harbors, of which 11 are for mixed commercial
extensive rail network in the Maghreb. Approximately use, another 11 are for fishing and the remainder are
1,900 kilometers of track (of which 20% are dual for yachting.
tracks) are operated by the state-owned ONCF. In
2011, ONCF carried 28 million passengers and 32 The port of Casablanca on the Atlantic is the main
million tons of freight. maritime entry point for Morocco, with more than 26
million tons of freight transiting annually. Casablanca
However, 70% of the freight ONCF carries is has two container terminals and a third is being
phosphates, which will soon be transported by more completed. It handles much of the countrys container
efficient pipelines. ONCF is seeking replacement traffic, but this is down from previous years due to
goods, including cereals and other agricultural competition from Tangier-Med.
produce, perhaps in containerized forms. But ONCF
faces an uphill battle since the countrys geographic Tangier-Med is a mega-project that aims to become
disposition is not as conducive to rail freight as to road one of the largest ports on the Mediterranean. First
freight. The distance from Tangier to Casablanca, for opened in July 2007, the port now has two container
example, is only 350 kilometers. terminals and the capacity to handle over 8 million
TEUs (twenty-foot equivalent units).
ONCF is also focused on increasing ridership.
Morocco has invested heavily in upgrading its rail On the horizon is another Mediterranean port, Nador
infrastructure, improving rail beds and rolling stock West Med, which will focus on the hydrocarbon
and installing electrified overhead catenaries. These sector and offer transhipment options for Atlantic-to-
improvements have increased passenger traffic. In Mediterranean freight flows.
2010, ONCF carried about 30 million passengers
compared to 20 million in 2005. For more information:
Ministry of Equipment and Transport www.mtpnet.gov.ma
Morocco is also soon to be the first African country La Fdration Nationale du Transport Routier au Maroc
to have a high-speed rail connection, linking Tangier (road haulers) www.fntr.ma
in the north to Marrakech in the center of the country, ONCF (Moroccan railways) www.oncf.ma
about 750 kilometers.

2012 Edition | Doing Business in Morocco 53


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Building boom
Moroccos infrastructure boom is turning
investors heads. Each new government
budget includes more infrastructure projects,
attracting bidders from Spain, Turkey, Portugal
and elsewhere.

M orocco is investing heavily on infrastructure


to boost economic development. Cranes are
omnipresent. Earth-moving equipment rumbles
throughout the kingdom. There are so many road, rail,
harbor and industrial infrastructure projects going on
that Morocco has earned the moniker country under
construction.
Morocco is investing heavily in infrastructure to boost economic growth.
Infrastructure is always in top position in the
national budget. Such investment directly impacts All this foreign interest has ruffled some local feathers.
the countrys economic growth which increases its Moroccan construction firms (BTP or Batiments et
transport requirements. Thus, major international Travaux Publics in French) want their share of projects
operators who are facing dropping demand elsewhere too. The National Federation of BTP companies (FNBTP)
due to the global economic slow-down are heading to is successfully lobbying to ensure they get them. The
Morocco and its resilient economy. Ministry of Equipment and Transport has reserved at
least 15% of projects for Moroccan BTP firms.
Spanish operators are among the most prominent.
Companies such as Copisa, BSA, Ecisa and Housing
engineering firm Cido Consult all developed a Despite the international crisis, Moroccan
Moroccan presence in 2011. The beginning of 2012 infrastructure is proving resilient. According to the
has seen the Spanish rush continue with the arrival High Commission for Planning (HCP) in early 2012,
of Grupo Mecanotubo, a construction company, construction activities continued to strengthen
and Euro Geotecnica, an engineering company following the trend that started in mid-2011.
specialized in geotechnical services.
Social housing is one of the main drivers of this. The
Turkish firms, such as Makyol, for the widening of the 37% increase in new projects, designed to house
Rabat-Casablanca super highway, or Yapi Merkezi, for hundreds of thousands of low income families,
the building the Casablanca tramway, have practically reflects the effect of incentives over the past two
become household words in Morocco with their high years that have revitalized real estate activity. Add to
visibility and big budgets. this a 26% increase in residential housing starts.

Built from cement


Top Moroccan infrastructure companies
Rank Company Year Founded Rev. 2010* CEO Website
1 Lafarge Ciments 1928 626.2 Mohammed Kabbaj lafarge.ma
2 Holcim Maroc 1972 414.4 Dominique Drouet holcim.ma
3 Ciments du Maroc 1952 349.0 Mohamed Chaibi cimentsdumaroc.com
4 SGTM (Soc Gen Travaux Maroc) 1971 332.3 Messrs Kabbaj sgtm-maroc.com
* Figures in $M Source: Economie Entreprises Les 500, Mediaside analysis

56 Doing Business in Morocco | 2012 Edition


Infrastructure

Success Story
Warehouses sprout like mushrooms
For the past two years, French company GSE has been busy
designing and building some of the largest warehouses and
logistics platforms in Morocco. After successful forays in
other emerging markets, what attracted GSE to Morocco
was the ease of doing business and the important market
potential, due to the countrys emphasis on infrastructure
development and the ambitious supply chain efficiency
program (see page 53, sidebar on AMDL). GSE was assisted
by Maghreb Consulting for its market entry.
GSEs main projects in Morocco have included vast
warehouses for two top big box retailers Marjane and
LabelVie as well as a logistics platform for major trucking
company SNTL. GSE is now preparing further projects with
the French Chamber of Commerce.

The results of an HCP business survey among BTP the Beni Mellal to Berrechid highway (172 kilometers,
professionals points to a continued improvement $705 million), and the Tit-Mellil to Berrechid highway
in outlook for construction activity, underpinned by (30 kilometers, $150 million).
increased demand from private households. Other
sector indicators confirm this outlook. Cement Railways
sales, for instance, rose 2.3% in the first quarter Moroccos railway program includes significant
of 2012, beating the average trend for the second structural investments, within the framework of
successive quarter. HCP estimates that value added general agreements between the railway operator
of the construction sector should increase by 6% ONCF and both the government and the Hassan II
and 6.5% respectively during the first two quarters Fund for Social and Economic Development.
of 2012.
This covers the financing of the mega-project for
In terms of employment, the BTP sector employed Africas first high-speed train (Train Grande Vitesse
nearly 1,059,000 people in 2011, up from 1,029,000 or TGV), linking Tangier and Casablanca. The total
people the year before, representing 9.18% of the budget for this is about $3.9 billion, of which about
employed population aged 15 and over, says Fatna $2.3 billion is for the TGV and the remainder for
Shihab, head of social housing for the Ministry of modernizing existing railway assets.
Housing.
And ports
Highways Harbors have not been forgotten in Moroccos
But the best is yet to come, foremost because infrastructure master plan for 2010-2030. Increasing
Moroccos highway construction program is far international trade has meant an explosion in
from complete. The additional program for 2015 shipping. Government plans include continuing
includes another 384 kilometers, representing a work at the major project of Tangier Med II harbor to
total investment of around $1.75 billion, discloses increase the capacity to 8 million TEU (twenty-foot
Othman Fassi-Fihri, Director General of Moroccan equivalent units). The port extension will add two new
Highways (Autoroutes du Maroc) or ADM, the state- deep-water container terminals, providing 5 million
owned operator of divided toll highways. TEUs of additional capacity.

ADMs action plan includes widening to six lanes For more information:
the Casablanca-Rabat highway (60 kilometers, $150 Ministry of Equipment and Transport
million) by 2012, and the Rabat road bypass to be www.mtpnet.gov.ma
completed in 2014 (41 kilometers, $330 million). Autoroutes du Maroc www.adm.co.ma
Other projects should also follow in 2015, including FNBTP (construction federation) www.fnbtp.ma

2012 Edition | Doing Business in Morocco 57


Phosphates
and more
The Moroccan government recently kick-
started the exploration and exploitation of
other minerals in order to bring diversity to the
countrys mining sector.

A lthough Morocco relies more on its brains than


its earthen sub-strata, mining does represent
an important component for the economy. In 2010
the mining sector represented 6% of the countrys
GDP, about 27% of the national export earnings, and
provided employment to roughly 35,000 people. Phosphates are key for national exports and crucial for worldwide food security.

Like many other countries, Morocco is basically a The company is solely responsible for the production
one-commodity show, with phosphates being the and sale of Moroccan phosphate resources, mined
Moroccan bread-winner. Used mostly for agricultural at the Bengurir, Khouribga, Youssoufia mines in
fertilizers, phosphates represent about 94% of total central Morocco, and the Boucraa mine in southern
mining output by volume. Morocco. Altogether these sites represent about
86 billion cubic meters of reserves. OCP is a state-
Morocco is believed to hold the bulk of global owned company created in 1920.
phosphates reserves. The country is the worlds
third-largest producer of phosphates and accounts Other minerals
for around 17% of global output. Due to strong Morocco recognizes its mining sector is overly
international demand and tight supply, prices are dependent on phosphates and needs to diversify.
expected to remain high in 2012. Therefore it has started mapping out its geological
resources under the National Geological Mapping
The Phosphates Company (OCP) is one of the Plan and is actively leveraging private investors to
worlds biggest exporters of phosphates. It has a help develop alternative minerals.
monopoly on phosphate mining in Morocco and
plans to double annual production capacity by Although still small by international standards,
2020 to 50 million tons a year. OCP employs almost Morocco is an active producer of precious metals
20,000 people. (silver and gold) and of other ores (iron, lead, zinc,

OCP on a cloud of its own


Top five companies in the mining sector
Rank Company Founded 2010 Rev.* Employees CEO Website
1 OCP 1920 5,200 19,044 Mostafa Terrab ocpgroup.ma
2 Managem 1930 336.4 69 Abdellaziz Abarro managem-ona.com
3 CMG Co. Miniere Guermassa 1988 102.0 597 Abdellaziz Abarro managem-ona.com
4 Soc. Metallurgique dImiter 1969 86.5 n.a. Abdellaziz Abarro managem-ona.com
5 Comp. Tifnout Tiranimine n.a. 80.6 n.a. n.a. n.a.
*Figures in $M Source: Economie Entreprises Les 500, Mediaside analysis

58 Doing Business in Morocco | 2012 Edition


Mining

Insight
Grand Central Phosphate
OCP, Moroccos largest company with $5.2 billion in 2010
revenues, is helping move the country up the phosphate
value chain. Why settle for the export of raw phosphates
when one can produce finished or semi-finished products
locally and export those?
With this vision in mind, OCP is developing Jorf Phosphate
Hub (JPH) in Jorf Lasfar, a coastal town about 125 kms
southwest of Casablanca. JPH is no small project: the total
investment is set for $1.17 billion, in two phases. Over 300
acres have been set aside for factories, storage warehouses,
materials handling equipment, and of course new harbor
facilities to export the products (chemicals, fertilizers, and
other phosphate-based products).
The principle of JPH is to offer plug-and-play options to
companies wishing to develop downstream phosphate
activities, explains the JPH Project Manager at OCP. The
hub will provide its industrial tenants with all the required
infrastructure: water, electricity, waste treatment, pipelines,
copper). In 2010 these latter four racked up production
volumes of about 50,000 tons each. security, and of course roads and bridges to connect to the
domestic and export supply chains. JPH will open in phases,
Mineral deposits have been found throughout the with its first phase of four industrial plants opening in 2013,
country. Lead, fluorine and antimony are found in the and the remainder in 2015.
center of the country. The Anti-Atlas Mountains contain
copper, manganese, gold and silver deposits, as well Several viable petroleum systems, with good
as strategic metals such as cobalt, tin and wolfram. hydrocarbon potential, exist in Moroccan sedimentary
The High Atlas range has deposits of lead, zinc, basins. ONHYM has carried out exploratory drillings,
copper, manganese, iron and barite, while the eastern either on its own or via licenses granted to foreign
part of the country has reserves of lead, zinc and coal. companies, and has identified 26 sites as promising
for future exploitation. Morocco currently counts only
To attract foreign attention to the countrys mining 18 active sites.
opportunities, Morocco has substantially changed the
legal framework for mining. Mining companies that Investment prospects
export from Morocco have the advantage of a lower The strategic potential for phosphates is downstream
17.5% corporate tax rate as do mineral producers in added-value activities, such as in the production
who sell on to value-added transforming companies of phosphoric acid, ready-made fertilizers and
for export, explains Julien David of French law firm other chemical derivatives. The Moroccan chemical
Gide GLN. industry is growing rapidly as new compounds are
being produced locally.
Hydrocarbon search
Oil and gas exploration and research in Morocco Elsewhere, the emphasis is on finding and developing
is spearheaded by the National Hydrocarbons and new minerals production, in partnership with qualified
Mines Office (Office National des Hydrocarbures et foreign partners. Another area that offers future growth
des Mines or ONHYM). potential is quarrying, namely for marble and granite.

Compared to its neighbors (Algeria, Mauritania and For more information:


Libya) which have vast proven reserves, Moroccos ONHYM www.onhym.com
petroleum potential is still largely unknown. But OCP www.ocpgroup.ma
geologic research carried out from 2000 to 2011 Ministry of Energy, Mines, Water and the Environment
shows a glimmer of hope. According to ONHYM: www.mem.gov.ma

2012 Edition | Doing Business in Morocco 59


Growing
agriculture
Moroccos agricultural sector has doubled
in a decade. Now the country is developing
high value added products for export while
covering domestic needs.

I n 2010, the agricultural sector amounted to $8.5


billion or 14% of Moroccos GDP, according to
the Ministry of Agriculture. This is almost twice the
contribution of a decade ago. And agriculture is one of
Moroccos largest employers, with four million people Olives on their way to becoming tapenade.
active in the sector. The Moroccan rural population
is estimated to total 18 million, or about 49% of all Moroccan agriculture is globalized. Although the
households. country satisfies full domestic demand for many
crops, (e.g. meat, fruits and vegetables) and even
Morocco can still count on the bounty of its land and exports many of these items, Morocco also imports
the diligence of its farmers for a substantial part of the a variety of foods.
countrys wealth, explains explains Pascale Nejjar,
director of FENAGRI, the federation of agricultural Green Morocco
processors and manufacturers. Agriculture remains a Morocco introduced the Plan Maroc Vert (Green
pillar of our economy and will become more so as the Morocco Plan) to increase the proportion of land
government enforces plans to increase productivity devoted to higher valued products, increase the
and re-orient output to richer seams. amount of irrigated land, develop a series of six
agropoles (concentrated areas of fully integrated
Morocco has about 8.7 million hectares of fertile soil production zones), and to expand agricultural
and another 20 million hectares of semi-arid land. exports.
Its fertile land is located in temperate areas where
fruits and vegetables grow abundantly. The majority Part of our emphasis is to increase our share of
of the fertile land (67%) is devoted to the cultivation higher value-added processed foods, both for
of cereals. The Atlantic coast and the Mediterranean domestic consumption and for export, explains Ms.
climates are both conducive to good harvests. Arid Nejjar. In our strategic plan we have targeted sectors
areas are more suited to low-density ranching and like olive oil, dairy products, ready-made foods such
olive groves. as tajines or couscous.

Big Food
Top five agro-processing companies in Morocco
Rank Company Activity Founded 2010 Rev.* CEO Website
1 Altadis Maroc Tobacco 1910 1,637.4 Larbi Bellaha altadis-maroc.ma
2 Centrale Laitiere Milk, dairy products 1940 956.0 Driss Bencheikh centralelaitiere.com
3 Cosumar Sugar 1929 679.6 Mohammed Fikrat cosumar.co.ma
4 Lesieur Cristal Oils 1940 402.3 Samir Oudghiri Idrissi lesieur-cristal.ma
5 Copag Diversified cooperative 1987 304.2 Moulay Loulttiti n.a.
*Figures in $M Source: Economie Entreprises Les 500, Mediaside analysis

60 Doing Business in Morocco | 2012 Edition


Agro-processing

Olive production
Morocco is located in the Mediterranean olive belt,
yet its production of olive oil is only 3% of the world
total, compared to Spains 36% and Italys 25%.

To increase Moroccos share of world olive


production, the government implemented programs
to improve the quality of the oil produced, increase
domestic and foreign demand, and double the area
dedicated to olive groves.

With almost $75 million in financing available to


develop the olive oil industry, Olea Capital seeks
to increase production capacity to 30,000 tons of
olive oil. Most of the new prodution capacity is
aimed at foreign markets.

Milk products is another target of the agricultural


development plan and resources have been
allocated to the segments development. Morocco
Irrigation has shown excellent promise. In 2003 only counts 50 production units, of which 26 are
only about 100,000 hectares were irrigated, or less cooperatives. The government program is focused
than 0.1% of the countrys total land. In 2010, the on improving cattle races, reinforcing milk collection
number of irrigated hectares had more than doubled and treatment facilities, and on diversifying cattle
to about 250,000. The goal of Plan Maroc Vert is to feeding methods.
reach 550,000 hectares under irrigation by 2020 and
to shift from gravity irrigation to drip irrigation. The Processed foods
government is subsidizing drip irrigation investments The main area of focus for the producers federation,
for farms of less than five hectares when these are FENAGRI, is increasing the foreign demand for
created through aggregation of smaller landholdings. Moroccan processed foods. But this is proving
difficult despite the government assistance.
Fruit out, cereal in
Values of agricultural imports and exports in 2010 ($M) The Moroccan government provides active
support, for example in helping us with sales and
Imports marketing efforts abroad, says Nadia Mabrouk,
founder of Saleva, an Agadir-based manufacturer
of ready-made dishes such as tajine and tapenade,
Cereals $1,274.9 an olive-based appetizer. Landing international
Exports distributors is our main difficulty, second is
increasing awareness of our excellent products.
Milk and dairy products $245.6
Citrus fruits $327.5 Some Moroccan food processors have been
Sugar $386.0
successful capturing foreign markets, such
Oils $538.0
Venezia Ice, an ice cream maker. Certain food
Vegetables (fresh, frozen or segments have started using creative Moroccan
preserved) $222.2
branding. Tangerines from the northern Berkaane
Tomatoes (fresh) $198.8
Fruits (fresh, frozen or
region have obtained an appellation dorigine
preserved) $175.4 controle. Olive oil and other commodities are
Other $1,625.7 soon to follow.
Vegetables (canned) $175.4

Other $748.5 For more information:


Ministry of Agriculture www.agriculture.gov.ma
Total = $1.9 Billion Total = $4.1 Billion
FENAGRI (Fdration Nationale de lAgroalimentaire)
Source: Ministry of Agriculture and Fishing
www.fenagri.org

2012 Edition | Doing Business in Morocco 61


Oceans
of fish
Representing almost two thirds of food
exports from Morocco, the fishing sector has
traditionally been an economic mainstay.
Despite some obstacles, the sector is growing
by capturing higher value-added activities.

E ndowed with a 3,500 kilometer coastline,


Morocco is considered a world leader for certain
seafoods. Fishing provides the kingdom with jobs,
food security and foreign currency. In 2011, revenues The fishing sector is being reformed for higher productivity.
from fishing amounted to $1.4 billion, or 1.5% of
Moroccos GDP. Although Moroccan waters conceal hundreds of fish
species, four varieties account for 77% of exports:
According to the UNs Food and Agriculture frozen cephalopods such as octopus (27%); canned
Organization, Morocco accounts for nearly 1% of fish mainly sardines (37%); fresh fish (8%); and frozen
global production, amounting to more than a million crustaceans, namely peeled shrimp (6%).
tons a year. This may seem tiny compared to Chinas
15 million tons or Indonesias six million tons, but Approximately 70% of Moroccan fish exports end up
it still places the country at the head of all other on European tables, although exports (mostly canned
Mediterranean countries. fish) to other African nations tripled from 2000 to 2011,
reaching $175 million. This market holds enormous
Morocco can thank the little sardine for its good potential given the fragile supply of fresh fish in many
fortune. It is the worlds largest producer of sardines, African nations.
accounting for nearly half of the worlds catch,
followed by Spain. Alas, almost three-quarters of Mostly frozen fish
sardine production ends up in industrial byproducts, Breakdown of fish exports by value (2010)
such as fish meal or oil. Canned sardines remain the
lesser portion of the catch, and the export of fresh Oil
sardines for human consumption remains small, Flour 4%
7%
although it is growing.
Fresh
Canned sardines are the flagship product that makes 8%
Frozen
Morocco a world leader and justifies our large share 39%
in world seafood exports, explains Hassan Sentissi, Semi-preserved
head of the Moroccan fish federation FENIP, one of 9%
many fish federations in Morocco.

Fish exports
Morocco exports three categories of marine products.
Topping the list is frozen fish, representing 39% of Canned
33 %
exports. Next is canned and semi-preserved fish with
a 42% share. Fresh produce accounts for only 8%.
Other marine products, such as fish meal or fish oil,
Source: EACCE Morocco
make up much smaller percentages.

62 Doing Business in Morocco | 2012 Edition


Fisheries

Sardines are big


Breakdown of fish by catch (2010)

Shrim p Other
1% 1% Molluscs
Squid/octopus 0%
5%

White fish
9%

Sardine/anchovy
84 %

Morocco has 30 production plants for canning and Source: EACCE Morocco
preserving fish with an annual capacity of 300,000
tons and employing 21,000 people. The semi- and export markets, as well as protein for animal feed,
preserved processors focus on salt curing and it confronts several obstacles, including land scarcity,
anchovy processing as well as preserved or pickled rising property prices, an inadequate legal framework
fish via more than 20 factories employing 6,000 and reliance on imports such as fry, spat and feed.
people.
Government support
Fish processing in Morocco is the realm of SMEs but The Moroccan government program called Halieutis
among the larger companies is La Monegasque & funds personnel training and structure improvements.
Vanelli, the world leader for anchovies. During 2012, four new maritime training institutes will
be created and $4 million will go into harbor (docking)
Challenges to growth improvements.
Although the Moroccan fishing sector has been
growing consistently, it still faces challenges. Further development of the fisheries sector also
requires resource preservation. According to Aziz
On the upstream side, we have a very fragmented Akhenouch, Minister of Agriculture and Fisheries, the
fishing flotilla and fluctuations in the catch, laments government has implemented programs to protect
Mr. Sentissi, head of FENIP. This impacts the marine fisheries on the Mediterranean coast.
regularity with which we can operate our canning or
preserving plants. This includes plans for sustainable fisheries and the
enforcement of biological recuperation periods, Mr.
Another difficulty lies with the quality of conservation Akhenouch says, adding that strict fishing quotas
equipment on the ships and port infrastructure where will be maintained to preserve fish stocks and enable
docking facilities are a source of user complaints. reproduction for vulnerable species.

A recurring problem has been the high proportion of For more information:
fish that ends up in low value-added uses, namely fish
FENIP (La Fdration des Industries de Transformation
meal and oil. Furthermore, a significant proportion of et de Valorisation des Produits de la Pche)
the catch is exported without processing. www.fenip.com
Ministry of Agriculture and Fishing (Ministre de
Moreover, aquaculture is under-developed. Although lAgriculture et de la Pche Maritime)
fish farming could increase fish supply for domestic www.mpm.gov.ma

2012 Edition | Doing Business in Morocco 63


Pharma eyes
export market
The lifting of its long-existing protectionism has
made the Moroccan pharmaceutical industry
nimbler and more open to foreign assistance,
placing the industry in a position to export to
sub-Saharan markets.

T he pharmaceutical industry is a key ingredient to


the Moroccan economy. In 2011, it accounted
for more than $950 million in revenues (at the
wholesale level) and employs about 40,000 people.
Thirty-two pharmaceutical producers nationally
supply the countrys 11,000 pharmacies. On The Moroccan pharmaceutical industry also produces for export.
average, Moroccans spend $46 a year each on
pharmaceutical products. founder of Galenica Pharmaceuticals and president
of the Moroccan Pharmaceutical Association
The Moroccan government has traditionally played an (Association Marocaine de lIndustrie Pharmaceutique
active role in both encouraging and regulating local or AMIP).
pharmaceutical producers, under the tutelage of the
Ministry of Health. The government has never been In 2005 the Moroccan government approved two
abashed about promoting local production, so as to health insurance programs. The first is a payroll-
insure traceability and quality control over medical based mandatory health insurance plan called
products. lAssurance Maladie Obligatoire (AMO) for all working
people. The second is the Regime dAssistance
Among the most important aspects of the medical Medicale (RAMED) which finances health services for
framework are the mandatory medical coverage 8.5 million Moroccans living below the poverty line,
programs, explains Abdelghani el Guermai, the about 30% of the population.

More and more pills As a result of these programs, between 2008 and 2010
Evolution of pharma revenues (wholesale) the Ministry of Health increased its pharmaceuticals
1,200 procurement budget from $5.7 million to $160 million.

1,000 Pharmaceutical products benefit from the absence


of VAT on many important classes of medications,
800 such as those for hepatitis and chronic diseases. The
Revenues ($M)

government also regulates pricing.


600

Control and distribution


400 The government is active in checking product quality
at several levels. Upstream, the National Laboratory
200
for the Control of Medical Products (Laboratoire
National de Controle de Medicaments or LNCM) is
0
9 0 01 2 3 4 5 6 7 8 9 10 11 the controlling laboratory, whereas downstream the
199 200 20 200 200 200 200 200 200 200 200 20 20
Health Ministry controls at the pharmacy outlet level
Source: IMS Health (via AMIP)
on an ad hoc basis.

64 Doing Business in Morocco | 2012 Edition


Pharmaceuticals

Like many emerging markets, Morocco puts particular


emphasis on the development of less expensive
generic drugs. This reduces costs while increasing
access to a larger population. It also creates export
potential to neighboring countries. According to
AMIP, generics represented about 30% of drug sales
in 2011 versus 70% for patented products.

We see strong growth for generics in the Moroccan


market due to government pressure to reduce health
expenditures, explains El Guermai, AMIP president.
However certain areas such as cancer and biotech-
related products will remain green pastures for
patented drugs.

Local manufacturing, which is typically done under


a licensing contract with a foreign patent-holder or
by a local generic producer, accounts for 70% of
domestic demand. Imports cover the remaining 30%.
Approximately 8% of domestic production is sold
as exports, mostly to sub-Saharan countries and to
neighboring Maghreb countries. This represented
almost $60 million in 2010.
According to the pharmaceutical association, on
an aggregate basis, Moroccan pharmaceutical Framework for international entrance
producers spend about $34 million annually on quality Morocco offers many opportunities for foreign
control measures. The proof of the production quality investors due to strong market growth and good
lies with the World Health Organization, which has export potential from a Moroccan regional platform.
classified Morocco as Europe-zone, implying that
the quality controls are at European levels. The extension of generics to 50% or even 70% of
the market value is one opportunity. Another is the
The distribution of medical products in Morocco is local production of active pharmaceutical ingredients
done mainly via a network of 40 wholesalers that (APIs), which is where Ranbaxy of India has found a
reach out to the countrys pharmacies and hospitals. place. Another opportunity may arise over the next
Wholesalers account for 80% of the flow, while 20% decade as qualified locally-educated researchers and
goes directly from manufacturers to pharmacies or scientists enter the workforce and R&D focuses on
hospitals. State hospitals are supplied via the state- specific sub-Saharan diseases.
run Pharmacie Centrale de Berrechid.
Several measures exist to stimulate FDI in our
Industry profile sector, says El Guermai. And the fact that perhaps
The pharmaceutical industry in Morocco has seen 40% of production capacity sits idle in Morocco
consistent growth by many benchmarks. The number means that foreign companies can take advantage
of manufacturing facilities has grown from 22 in 2000 of market opportunities at lower risk levels than
to 32 in 2011. Over the same period, the total units elsewhere. Moreover, because of new government
produced jumped from 178 million to 293 million. insurance schemes such as AMO for middle-class
workers and RAMED for low-income Moroccans,
This growth has come from a mixture of domestic healthcare in Morocco is expanding rapidly,
companies focusing on generic products (such as creating new opportunities for foreign investors in
Galenica or Cooper Pharma), and the entrance of foreign the sector.
companies, either via joint ventures or via wholly-owned
subsidiaries. There are no restrictions on foreign direct For more information:
investment in the pharmaceutical sector, which may Moroccan Pharma Assoc (AMIP) www.amip.ma
have been part of the appeal for such recent entrants Moroccan Health Ministry www.sante.gov.ma
as Ranbaxy of India or Sanofi-Aventis of France. Directory of Moroccan pharmacies www.pharmacies.ma

2012 Edition | Doing Business in Morocco 65


Moroccos
new consumer
society
With increasing wealth and exposure to global
trade, the Moroccan lifestyle is slowly being
transformed. An expert at Moroccos leading
business school gives some pointers on
understanding the changes.
Shoppers at a recently opened hypermarket in the Mall of Morocco.

A ccording to the Moroccan High


Planning Commission, my
country is a balanced mix of classes.
Consumption patterns have also changed. Smaller
households seek easy-of-use and time-saving
products and services. This means a greater demand
The middle class is 53%, while the for appliances, frozen food and ready-made meals.
lower class is 34% and the upper The workday has also changed with longer working
By Imane El Ghazali class has 13%. The majority (44.5%) and more irregular working hours and shorter lunch
Professor of of the middle class is salaried, while breaks. This may explain the explosion of home
Economics 30% are self-employed. Monthly delivery and fast food.
ESCA School of
Management earnings range from $320 to $765
(MAD 2,800 to MAD 6,736). With spending on basics (housing, food, health)
now covered, Moroccans are free to splurge on
Moroccans are hard-working and thrifty. On average, communication, entertainment and travel. This means
in 2011 we saved about 18% of our disposable distribution channels have changed as well. Corner
income. Yet, we also know how to spend our hard- grocery stores and traditional open air markets
earned dirhams. Real consumption per capita are giving way to supermarkets and hypermarkets
increased by 4.1% in 2011 to $1,760 (MAD 15,500). (Marjane, Acima, Carrefour, LabelVie and BIM),
particularly in urban areas. Women are taking on
According to Euromonitor, disposable income per greater responsibility in spending decisions, whereas
capita has increased annually since 2004 and was this task was traditionally the purview of the male
about $2,000 (MAD 16,831) in 2011. The increase in head of household.
disposable income has enabled Moroccans to acquire
products that were once considered luxuries. This Spending on healthcare has experienced strong
increase is due to the significant wave of investment growth since the government decreed wider access
carried out in recent years on infrastructure and to medical care (RAMED). As for education, the
projects with strategic impact. growth of private schools shows that Moroccans
have lost some of their faith in public schooling, and
Traditionally Moroccan society consisted of large that they have greater disposable income available for
families living under one roof. This culture has education. Nonetheless, these expenditures remain
changed to more individualistic habits. The family small at only 2.4% of household spending in 2010.
unit is more fragmented with households of two to
three people becoming more numerous. Marriage has Although the majority of travel is by taxi or bus (a city
also changed. In the 1960s, most women married at bus ticket costs $0.40), access to private vehicles is
17 and men at 24 years. Today the average age of growing fast. Some of us prefer to use scooters or
marriage is 29 and 32 years, respectively. small motorbikes because of urban congestion.

66 Doing Business in Morocco | 2012 Edition


Consumer Behavior

Dress habits follow the urban-rural divide. Rural areas


(and the poor) tend to stick to traditional garb (such
as the djellaba). Residents of big cities follow and
purchase the latest fashions, especially younger people
which explains the presence of different international
brands (Zara, Mango, Diesel, Massimo Dutti, Celio, H
& M) and strong national brands, such as Marwa.

In poor neighborhoods and rural areas, traditional


markets are still the main place of purchase. They
offer low prices and the possibility of bargaining, an
entrenched habit among most Moroccans.

Online shopping is still nascent. Most Moroccan


consumers prefer personal contact because shopping
is considered entertaining but also because they
are wary of giving credit card numbers online. But
since Moroccans are very price-sensitive and good
deals are sometimes to be had online, we expect
e-shopping to grow.
Formal and informal retail co-exist in Morocco.
Increasing wealth stimulates formal retail, the new Information technology and telecoms have also
Morocco Mall in Casablanca being a prime example. helped revolutionize the communication habits of
Opened in December 2011, this is the biggest mall in Moroccans. Three telephony and Internet operators
Africa with 600 major brands and an enormous indoor (Maroc Telecom, Meditel and INWI) compete for
aquarium. Yet Casablanca also hosts traditional business and almost two million households have
markets for food, clothing and other basic necessities. Internet access.

Cafs play an important part in our lives as popular The Moroccan economy is evolving rapidly, becoming
meeting places, especially for men, and particularly one of the most dynamic in the MENA region and an
for lower income people. The arrival of various chains attractive destination for international investors.
(such as Paul, Starbucks and Venezia Ice) has changed
the landscape. Women and couples now flock to these For more information:
trendy places, which are very popular on weekends. ESCA School of Management www.esca.ma

2012 Edition | Doing Business in Morocco 67


Tuned in
to tourism
Strategies to increase bed capacity and visitor
numbers have given Moroccos tourism sector,
one of the countrys largest GDP contributors,
a real shot in the arm despite economic and
political troubles elsewhere.

T he Moroccan government commissioned its


Vision 2010 strategy in 2001. Between then
and 2010 the number of visitors to Morocco more The recently completed Mazagan resort on the coast southwest of Casablanca.
than doubled from 4.2 to 9.4 million, according to
Moroccos National Tourism Federation. and employs 420,000 people, not including indirect
employment.
Part of the Vision 2010 strategy, called Plan Azur,
was to build six new resort cities on the Atlantic and About 26% of international visitors are on package
Mediterranean coasts. By 2010, two of the cities were tours and about the same proportion are individual
already funded and being built, while the other four travellers. The largest segment of international
were being put out to bid. travellers, fully 46%, are Moroccans residing abroad.
Despite the countrys potential for conventions
The success of Vision 2010 prompted King Mohamed and exhibitions, only 2% are business travelers.
VI to launch Vision 2020 in November 2010. This aims So the Ministry of Tourism is studying the potential
at raising tourist arrivals to 20 million by 2020 and of business tourism and is launching a promotional
adding four additional cities to Plan Azur. campaign to attract business.

Tourism currently accounts for 9.6% of national GDP, Marrakech and Agadir remain the principal tourism
and fully 20% of foreign currency receipts. Banks and magnets, while Casablanca, Tangier and Rabat are
private investors continue to plow funds into new mostly for business with some pleasure mixed in,
projects. says Said Tahiri, president of the National Tourism
Federation.
According to a 2009 McKinsey study of the sector,
tourism accounts for about $600 to $700 million in Expanding capacity
annual real estate investments (land and buildings) One of the difficulties Morocco is having because of

Top Moroccan tourism companies


Rank Company Activity Founded 2010 Revenues* CEO Website
1 RISMA (Accor) Hotels 1993 133.2 Azzedine Guessous accor.com
2 Resort Co. (Mazagan) Beach resort 2008 105.3 Stephan Killinger mazaganbeachresort.com
3 Atlas Voyages Online travel 1964 63.2 Othman Cherif Alami atlasvoyages.com
4 Newrest Maroc Services Catering 1985 56.1 Karim Rahal n.a.
5 Kenzi Hotels Hotels 1988 53.7 n.a. kenzi-hotels.com
*Figures in $M Source: Economie Entreprises Les 500, Mediaside analysis

68 Doing Business in Morocco | 2012 Edition


Novotel Casa City Center
Le Novotel Casa City Center est un htel Novotel Casa City Center is a 4-star hotel
4 toiles, situ en plein coeur de Casablanca, located in the heart of the city, between the
riche dun emplacement idal, au centre du old medina and Hassan II mosque.
quartier daffaires, quelques minutes de The hotel meets the expectations of both
la mdina et de la mosque Hassan II. businessmen and tourists.
Lhtel rpond parfaitement aux exigences
dune clientle daffaires et de loisirs.

Novotel Casa City Center


Angle rue Zaid Ou Hmad Sidi Belyout - Casablanca - Maroc
Tl. : (+212) 22 46 65 00 - Fax : (+212) 22 46 65 01
E-mail : H6572@accor.com Designed for natural living*
*Conu comme un espace naturel.
Tourism

and Marrakech airports seeing over 1,000 flights a


week, as compared to 200 flights weekly in the 1990s.

Morocco positions itself as a more upscale tourism


destination than other Mediterranean basin countries
such as Tunisia and Turkey, which tend to focus more
on the mass market. Average spending for a tourist
in Morocco is around $800 while in Tunisia it is $250.

Tunisia emphasizes vacation clubs and mass tourism,


which we are trying to avoid, explains Mr. Tahiri.

Outlook and threats


Given the importance of tourism on the balance of
payments (foreign currency revenues), which is higher
for tourism than phosphate exports and remittances
from Moroccans living abroad, the sector is bound for
further growth. But where will future growth come from?

For Morocco, there are two niches that we are


looking at, says Imad Barakad, director general of
SMIT (Societe Marocaine dIngenierie Touristique,
or Moroccan Company for Tourism Engineering), an
its success is matching hotel capacity with demand. autonomous entity that assists the Moroccan Tourism
Currently some locations have an oversupply of beds Board in planning and aligning investors for large-
while others lack capacity. However, this is being scale projects.
addressed under Vision 2020 in which the government
plans to have 375,000 beds by 2020 compared to Firstly, there is potential in the ocean cruise market.
178,000 in 2010 and 97,000 beds in 2001. Morocco currently has only a small share of cruises
as opposed to the Greek islands, Mr. Barakad
The Open Skies Agreement with the EU signed in 2005 explains. A second avenue for us to explore are niche
has made Morocco much more accessible to tourists, vacations that are built around a specific interest or
namely via low-cost operators from Europe (Ryanair, hobby. Here we are thinking of golfing, eco-tourism
EasyJet), from the Middle East (Air Arabia), and even and cultural adventuring.
locally-developed alternatives (Jet4You). The number
of flights has increased drastically with Casablanca To grow, Moroccos tourism sector will need to
counter competition from other Mediterranean
The open skies eect countries with strong tourism sectors. However, last
Tourist arrivals since 2004 years unrest in two of those countries, Egypt and
10 Tunisia, increased tourism in Morocco. For instance,
9
in February 2011 after the events in Egypt, Morocco
saw a 17% increase in international tourists.
8

7 Another challenge is the economic recession hitting


Millions of tourists

6 the pocketbooks of Europeans who make up 80% to


5 85% of Moroccos visitors. But despite the expected
decline, tourism increased 2% in 2011 compared to
4
2010 and is showing signs of continuing to expand in
3
2012, according to the Ministry of Tourism.
2

1 For more information:


0 Office National du Tourisme du Maroc
2004 2005 2006 2007 2008 2009 2010 www.tourisme.gov.ma
Source: Federation Nationale du Tourisme
Federation Nationale du Tourisme www.fnt.ma

70 Doing Business in Morocco | 2012 Edition


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offices in Paris, Agadir, Fez, Marrakech, Meknes, Oujda, Rabat and Tangier
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Practical Info

Practical information
for visitors to Morocco

OFFICIAL LANGUAGES: are turned forward one hour on the last Sunday in
Arabic and the Amazigh (Berber) language are the April and turned back again on the last Sunday in
official languages of Morocco but French is widely September.
taught and serves as Moroccos primary language There is no DST during Ramadan. The dates of
of commerce and economics. It also is widely used Ramadan change from year to year. In 2012 it is
in education and government. Spanish is spoken from July 20 to August 19. Clocks are turned back
by some Moroccans, especially in the northern to Standard Time during Ramadan to make it easier
regions, but a boost is being given to English- for Muslims to observe the Ramadan fast during
language training. daylight hours.

CLIMATE: COMMUNICATIONS:
Moroccos climate is moderate and subtropical, Internet country code: .ma
cooled by breezes off the Mediterranean Sea and Telephone country code: 212
Atlantic Ocean. In the interior the temperatures
are more extreme, winters can be fairly cold and HOURS:
the summers very hot. Marrakech has an average Businesses: 9 a.m. to 6 p.m. Monday to Friday
winter temperature of 21C (70F) and summer Government offices: 8:30 a.m. to 4:30 p.m., Monday
temperature of 38C (100F). In the Atlas Mountains to Friday
temperatures can drop below zero and mountain Post offices: 8 a.m. to 6 p.m. Monday to Friday and
peaks are snow-capped throughout most of the Saturday mornings.
year. The winter in the north of the country is wet Banks in Morocco are generally open from 9 a.m.
and rainy, while in the south, at the edge of the to 3 p.m. in summer. In winter these times change
Moroccan Sahara, it is dry and bitterly cold at night. to 8:30 a.m. to 11:30 a.m. and from 2:30 p.m. to 4
p.m. During the month of Ramadan (in July-August
CURRENCY: 2012), banks are open from 9:30 a.m. to 2 p.m.
The national currency is the Dirham (MAD), which Morocco offers informal and formal retail. Informal
is subdivided into 100 santimat (singular: santim). retail includes open air markets (usually mornings)
Banknotes are issued in denominations of 20, 50, and street vendors (including night markets). Every
100 and 200 Dirham. Coins are issued in 10, 20 day except Sunday.
and 50 santimat, and in 1, 2, 5 and 10 Dirham. The Stores and shopping malls are open Monday
Dirham is fully convertible but export is prohibited. through Saturday, typically 9 a.m. or 10 a.m. to
6a.m. or 7 p.m. Mall of Morocco is open Sundays.
TIME ZONE: Souvenir shopping (ceramics, leather goods, brass,
Morocco Standard Time is GMT. Morocco started clothing, etc.) is typically available every day,
using Daylight Saving Time (DST) in 2012. Clocks including Sunday.

72 Doing Business in Morocco | 2012 Edition


Practical Info

ELECTRICITY: SITES:
Electrical current is 220 volts, 50Hz . Two-pin round Three imperial cities are essential to visit during a stay in
plugs are used. Morocco. Marrakech is the tourism capital of Morocco
with its many palaces, parks and minarets. Fez is the
TRANSPORTATION: cultural capital and boasts many ramparts and a large
Casablanca airport: medina. Not to be missed either are the walls and the
Mohamed V airport is located 30km from door of the Kasbah of the Udayas in Rabat, the capital
Casablanca. Taxis are available outside the airport of Morocco. Other jewels of Morocco include the
terminal and have set fares to Casablanca, which mausoleum of Ismail I and the door of Bab al-Mansour
is MAD 250 (about $30). Trains also run from the Meknes. Other towns in Morocco worth a visit are
airport to Casablanca and Rabat. A first class ticket Casablanca, home of the great mosque Hassan II, and
to Casablanca costs MAD 50 (about $5.75) and Tangier, notable for its large medina.
MAD 100 (about $11.60) to Rabat.
FOOD AND DRINK:
Taxis Coffee/tea: MAD 10-15 (about $1 to $1.70)
There are two categories of taxis in Morocco. Petits Sandwich: MAD 30-50 (about $3.50 to $5.70)
taxis are small- to medium-sized cars that travel a Bottle of water: MAD 10-15 (about $1 to $1.70)
limited range within a town or city. Officially they Beer: MAD 30-100 (about $3.50 to $11.50)
use a meter and charge an initial fare followed by Glass of wine: MAD 50-200 (about $5.70 to $23)
distance-based increments. However some taxis
are not metered. Confirm whether or not a taxi has RELIGION:
a meter before getting in, and if not arrange the fare Sunni Islam is the predominant religion in Morocco.
in advance. There are also about 100,000 Christians mostly of
The other category is the grands taxi. These are French descent, along with a reported 8,000 Jews
long-distance taxis that use fixed routes between who mainly live in Casablanca and Marrakech.
cities and towns. They charge a fixed amount for
specific routes and wait until they are full with other ALCOHOL:
travelers before they set off (they can take up to six Alcohol is forbidden in Islam but it is widely available
persons per car). It is possible to arrange a fare for in Casablanca and other Moroccan cities. In fact,
sole occupancy. Morocco produces two brands of beer and half a
dozen wines.
Trains
Morocco has a vastly improving train network Entertainment:
particularly between the major cities. Tourists often Cinemas: General entry MAD 35 to 60 (about $4
use the trains, which are quite comfortable. Consult to $7), 3D films MAD 49 to 60 (about $5.65 to $7).
the Moroccan national train service ONCF for times
and fares. Mediaside recommends and thanks the bookstore
Carrefour des Livres in Casablanca for their assistance.

This publication was produced by Mediaside SARL Copyright 2012


Mediaside SARL. The publishers thank the 77 rue du Faubourg St Denis Mediaside SARL
African Development Bank for their input. 75010 Paris
Tel +33 1 4483 9337 All efforts have been made to insure
Unless otherwise specified, all currencies accuracy of information provided. The
are in US dollars. contact@mediaside.biz
www.mediaside.biz publishers are not held responsible for
Publisher: Medaside SARL mistakes. The opinions expressed in
(Christopher Fodor and Dany Laloum) Agence Marocaine du Developpement the articles, including the sponsored
des Investissements (AMDI) statements, are those of the authors
Editor-in-chief: Christopher Fodor
Director: Ahmed Fassi-Fahri and interviewees and do not necessarily
Art director: Rohit Juneja represent the opinion of the Moroccon
Marketing coordinator: Ilham Doghmi
Contributors: Robert Goldsmith, Hayat government. A standard exchange rate
Gharbaoui, Younes Tantaoui, Nora Editorial and reseach coordinator: of 8.55 MAD-per-USD was applied.
Guessoum Ali El Yaacoubi
Photography: AMDI, Federation Nationale 32, rue Honaine (angle avenue
Tourisme, FENAGRI Michlifen Agdal), Rabat
Tel: + 212 537 67 34 20/21
Advertising sales: Dany Laloum, Fax: +212 537 67 34 17
Nora Guessoum, Stephane Benhaim www.invest.gov.ma
Government/institutional relations:
Hanane Baala

74 Doing Business in Morocco | 2012 Edition


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