shaping the future of africa kigali
TRANSCRIPT
Shaping the future of Africa
The foremostinternational meeting
for African CEOs, bankers and investors
O R G A N I Z E R SC O - H O S T
Shaping the future of Africa
KIGALI25-26 March 2019
O R G A N I Z E R S
The foremostinternational meeting
for African CEOs, bankers and investors
C O - H O S T
Shaping the future of Africa
The foremostinternational meeting
for African CEOs, bankers and investors
O R G A N I Z E R SC O - H O S T
Shaping the future of Africa
O R G A N I Z E R S
The foremostinternational meeting
for African CEOs, bankers and investors
C O - H O S T
MOROCCO
CONNECTING GLOBAL VALUE CHAINS
KIGALI25 March 2019
SUMMARY
• Institutions
• Geographic
• Macro-indicators
• Multicultural
WHAT IS MOROCCO ?
• Stability, Continuous Growth and Robust Indicators
• Business Friendly Environment
• Connectivity Infrastructures for Intra-African Trade
and Investments
• Linking To Global Value Chains
WHY INVEST IN MOROCCO ?
• Sticking to Moroccan Industrial
Acceleration Plan (IAP)
• Investing in the Emerging Plan Sectors
• Creating Regional and Continental Value
Chains
WHAT ARE THE INVESTMENT OPPORTUNITIES ?
WHAT IS MOROCCO?COUNTRY PROFILE
RABAT
Capital City
Democratic and social Constitutional
Monarchy
Institutional System
710 850 Km²of land area
14 km from Europe
+3% (2018)
Average Growth
Primary Sector 14%Secondary Sector 29,5%Tertiary Sector 56,5%
GDP Distribution
Cultural crossroad
INSTITUTIONS GEOGRAPHICAL MULTICULTURALMACRO-INDICATORS
Arabic and Amazigh (official),
French, Spanish, English
Languages
3 500 Kmof coastline
35,4 million
Population
5
WHY INVEST IN MOROCCO? (1/3)
A BUSINESS-FRIENDLY ENVIRONMENT
WHY INVEST IN MOROCCO?A BUSINESS-FRIENDLY ENVIRONMENT
Real GDP growth, IMF Inflation rate, IMF General government gross debt, IMF
STEADY GDP GROWTH LOW INFLATION SUSTAINABLE PUBLIC DEBT
2018-2022
4.1%
2011-2017
3.7%
2000-2010
4.7%
2018-2022
1.9%
2011-2017
1.2%
2000-2010
1.8%8.9%9.3%10.7%
2018-20222011-20172000-2010
57.4%
Source: IMF, UNCTAD, Fitch, BCG Analysis
Medium-term macroeconomic prospects are stable
Fitch, March 2018
Inflation is low and well-anchoredIMF Article IV, November 2017
Public debt is sustainableIMF Article IV, November 2017
STABILITY, CONTINUOUS GROWTH AND ROBUST INDICATORS
59.7%60.7%57.4%
MOROCCO MOVED UP BY 7 RANKS IN THE DOING BUSINESS 2020 (53H GLOBAL RANKING, 3TH IN AFRICA)
3TH TOP AFRICAN COUNTRY IN THE GLOBAL COMPETITIVENESS INDEX
75TH GLOBAL RANKING ( WEF 2018 )
2ND MOST ATTRACTIVE AFRICAN COUNTRY FOR FDIERNST & YOUNG AFRICA ATTRACTIVENESS PROGRAM 2018
CASABLANCA FINANCE CITY, 1ST AFRICAN FINANCIAL CENTER
(GLOBAL FINANCIAL CENTER INDEX 24 - 2018)
WHY INVEST IN MOROCCO?A BUSINESS-FRIENDLY ENVIRONMENT
WHY INVEST IN MOROCCO?A BUSINESS-FRIENDLY ENVIRONMENT
Investment: tailor-madeparticipation to investment costs
Recruitment & Training: direct financial incentives to cover costs
5 year tax exemption...then 8.75% tax for the next 20 years
20% flat fee for individual tax for employees
Land, office space, and industrial plants in main cities
Exemption from export fees
Financial support for building and equipment
Meetings and direct line with Minister of Industry, Investment, Trade and Digital Economy
Support from AMDIE (Moroccan Investment and Export Development Agency) end-to-end assistance for investors
Government Subsidies Tax Free Zones Special Economic Zones Government support
WHY INVEST IN MOROCCO?A BUSINESS-FRIENDLY ENVIRONMENT
A large and young workforce
Qualified human resources
A well gender-balanced approach
64% of population aged under 34
12 millions of active population
Adequacy between training plans and specific needs expressed by
private operators:16 public universities
170 private institutions300 vocational training centers
10.000 engineers/year
(ie) : Women represent 60% of the Moroccan textile industry
work force
ABUNDANT AND HIGH-QUALIFIED WORK FORCE
A multicultural offer
A pool of multicultural
Executives and talentsMulti-languages
WHY INVEST IN MOROCCO?A BUSINESS-FRIENDLY ENVIRONMENT
NO RESTRICTIONS TO CAPITAL FOR NON-RESIDENTS
FREE CAPITAL
FREE TRANSFER OF INCOME, DIVIDENDS AND LIQUIDATION BENEFITS
FREE
TRANSFER
• HASSAN II FUND
• INDUSTRIAL
DEVELOPMENT AND
INVESTMENT FUND
DIVERSE
TOOLS AND
MECANISMS
+100 NO-DOUBLE IMPOSITIONS AND INVESTMENT PROTECTION AGREEMENTS
AGREEMENTS
INVESTMENT FACILITIES FOR FOREIGNERS 1/2
TAX INCENTIVES & CUSTOMS DUTIES
EXEMPTION
ELIGIBILITY CRITERIA:
Investment ≥ 100 million MAD
INCENTIVES INCLUDE:
• Exemption of VAT on imports for capital goods, equipment and tools
for a duration of 36 months from start of operations. This exemption
is also given on parts, spare parts and accessories that are imported
at the same time as capital goods, machinery and equipment for
which they are intended.
• Exemption of customs duties on capital goods, equipment and tools
for a duration of 36 months from the signature of a an investment
agreement.
FREE ZONE STATUS
ELIGIBILITY CRITERIA:
Export turnover ≥ 85%
OFFERING INCLUDES:
• Full exemption from corporate tax for the first 5 years, followed by a rate
capped at 8.75% for the next 20 years
• Custom fee exemptions on imported goods and products
• VAT exemption on imported goods
• Exemption from license fees and urban tax during 15 years
+ Made to measure help for large scale projects
WHY INVEST IN MOROCCO?A BUSINESS-FRIENDLY ENVIRONMENT
INVESTMENT INCENTIVES 2/2
OFFSHORING P2I
AERONAUTICS P2I
GENERAL P2I
AUTOMOBILE P2I
AGRICULTURAL P2I
WHY INVEST IN MOROCCO?A BUSINESS-FRIENDLY ENVIRONMENT
INDUSTRIAL DEDICATED ZONES TO MAXIMISE INVESTMENT IMPACTS
RABATKENITRA
TANGER TETOUAN
FES
MEKNESCASABLANCA
MARRAKECH
LAAYOUNE
DAKHLA
TANGER AUTOMOTIVE
CITY
TECHNOPOLIS
MARRAKECH SHORE
FESSHORE OUJDASHORE
CLEANTECH
TETOUAN SHORE
ATLANTIC FREE ZONE
NOUASSEUR
AEROSPACE
PARK «MIDPARC»
AGROPOLIS
MIDPARC
CASANEARSHORE
Source: AMDI
BERKANE
OUJDA
AGADIR
13
WHY INVEST IN MOROCCO? (2/3)
CONNECTIVITY FOR INTRA-AFRICAN WIN-WIN PARTNERSHIP
WHY INVEST IN MOROCCO ?CONNECTIVITY FOR INTRA-AFRICAN WIN-WIN PARTNERSHIP
under the vision of its His Majesty the KingMohammed the Sixth (May God Assist Him), theKingdom of Morocco is keen to strengthen itsforeign strategy based on balanced and mutuallybeneficial relationships.
This is marked by the various visits of HisMajesty to different African countries, whichresulted on multiple economic and businessagreements with several countries from thecontinent.
H.M King Mohamed VI, meeting and Rwandese President, HE. M.Paul KAGAME, and Nigerian President, HE. M. Mohamed Bouhari.
INSTITUTIONNAL : STRONG POLITICAL AND HISTORIC FRAMEWORK
DIRECT CONNECTIONS TO MORE THAN 20 AFRICAN MAIN
AIRPORTS
AIR
CONNECTIVITY
DIRECT ROAD NETWORKS ACROSS THE CONTINENT FROM TANGIER
TO CAP
LAND
CONNECTIVITY
DIRECT CONNECTIONS TO 37 AFRICAN MAIN PORTS
SEA
CONNECTIVITY
LOGISTICS : EXCELLENT INFRASTRUTURAL FRAMEWORK
WHY INVEST IN MOROCCO?CONNECTIVITY FOR INTRA-AFRICAN TRADE AND INVESTMENTS
WHY INVEST IN MOROCCO?CONNECTIVITY FOR INTRA-AFRICAN TRADE AND INVESTMENTS
Source: TMSA, MIICEN
Tangier
Casablanca
Safi
Agadir
Oujda
Marrakesh
Fes
Dakhla
Laayoun
Essaouira
Ouarzazate
Main Airports
Railway
Highways
Main Trade Ports
16 international airports
13 ports dedicated to global trade
Highway network of ~2,000 km in 2018 (x10 in 15 years) connecting all cities above 500k inhabitants
1st high-speed train in Africa between Casablanca and Tangier reaching 320km/h
LOGISTICS : MULTIMODAL AND WORLD-CLASS QUALITY
WHY INVEST IN MOROCCO?CONNECTIVITY FOR INTRA-AFRICAN TRADE AND INVESTMENTS
Sources :RoyalAirMaroc;COMANAV
LOGISTICS : DIRECT AIR CONNECTION TO MORE THAN 20 AFRICAN CITIES (Both passengers and Cargo)
International Passenger numbers
Growing Steadly
Direct Connections to 32
European Cities
Direct Connections to 24 Cities
in Africa and Middle East
15,116,08 17,05 17,6
2012 2013 2014 2015
In Millions
TANGER MEDWorld-classInternational platform
Annual Capacity
of 3 Million
Containers
Capacity of
8,2 million
Containers
by 2017Integrated Industrial,
Logistics and
Commercial Zones
Neighboring the Port
Connected to
140 Port
(37 in Africa)
World Rank
55
Objective :
Reach world
TOP-20
Sources :RoyalAirMaroc;COMANAV
WHY INVEST IN MOROCCO?CONNECTIVITY FOR INTRA-AFRICAN TRADE AND INVESTMENTS
LOGISTICS : DIRECT SEA CONNECTION TO 37 MAJOR PORTS IN AFRICA
Ideal maritime
platform to
serve Europe
and Western
and Central
Africa
Sources :RoyalAirMaroc;COMANAV
Support regional economic, social and industrial development in all productive sectors (fisheries, agriculture, mining, energy, tourism, etc.)
Provide the region developed and modern logistic tool, at the height of its development ambitions
Promote the resource of small pelagics by setting up port infrastructures and industrial areas of proximity, offering the best conditions of competitiveness to the entire fishing industry.
Promote thedevelopment
Develop infrastructure
Valuing resources
DAKHLA ATLANTIC Strategic Port for North Africa and Beyond
WHY INVEST IN MOROCCO?CONNECTIVITY FOR INTRA-AFRICAN TRADE AND INVESTMENTS
WHY INVEST IN MOROCCO?CONNECTIVITY for INTRA-AFRICAN TRADE and INVESTMENTS
Some big players :
ICT & MEDIA MINES & ENERGY BANKS INSURANCE TELECOMMUNICATIONS REAL STATE/CONTRUCTIONS PHARMACEUTICAL
AIRLINE COMPANY
BUSINESS CONNECTIVITY : A LARGE MOROCCAN FOOTPRINT ACROSS THE CONTINENT
Morocco Intra-African Investments represented 85% of its overall FDI stock in diverse strategic fields
Morocco is One of the main Investors in the Continent
WHY INVEST IN MOROCCO?CONNECTIVITY for INTRA-AFRICAN TRADE and INVESTMENTS
International Passenger numbers
Growing Steadly
Direct Connections to 32
European Cities
MAURITANIA
SENEGAL
ALGERIA
TU
NIS
IA
MALINIGER
NIGERIA
ANGOLA
RDC
TANZANIA
ETHIOPIA
KENYA
BURUNDI
CENTRAL AFRICAN REPUBLICCAMEROUN
EQUATORIAL GUINEA
IVORY COAST
LIBYA
GUINEA
BURKINA FASO
GH
AN
A
TO
GO BE
NIN
GUINEA BISSAU
GABON
EGYPT
DJIBOUTI
BUSINESS CONNECTIVITY : A LARGE MOROCCAN FOOTPRINT ACROSS THE CONTINENT
AFRIQUE DUSUD
TCHAD
WHY INVEST IN MOROCCO?CONNECTIVITY for INTRA-AFRICAN TRADE and INVESTMENTS
+ 5000BILATERAL AGREEMENTS
CONCLUDED ON THE LAST
DECADE WITH 28 AFRICAN
COUNTRIES
IN A WIDE DIVERSITY OF
COMPLEMENTARY FIELDS….ECONOMIC GROUPSBILATERAL AGREEMENTS
• EDUCATION
• HEALTH
• TRAINING
• INFRASTRUCTURE
• AGRICULTURE
• IT
• BANKING
• ENSURANCE
AGREEMENT UNDER DICUSSIONS
WITH THE ECONOMIC COMMUNITY
OF WEST AFRICAN STATES
(ECOWAS)
AFRICAN CONTINENTAL FREE TRADE
AREA (Ratification in progress)
23
WHY INVEST IN MOROCCO? (3/3)
LINKING TO GLOBAL VALUE CHAINS
WHY INVEST IN MOROCCO?LINKING TO GLOBAL VALUE CHAINS
Free Trade Agreements opening markets
accounting for 1 Billion customers
United States of America
Free Trade Agreement
EFTA – Free Trade Agreement
Island, Liechtenstein, Norway, Switzerland
Free Trade Agreements
Preferential Agreements
55Countries
23
European Union – Free Trade
Agreement
United Arab Emirates - Free Trade Agreement
Greater Arab Free Trade
Agreement (GAFTA)
Agadir Free Trade Agreement
Egypt, Tunisia, Jordan
Turkey – Free Trade Agreement
- Agreement under negotiations with the Economic
Community of West African States (ECOWAS),
- Morocco Ratified the AfCFTA
WHY INVEST IN MOROCCO?LINKING TO GLOBAL VALUE CHAINS
Integration of International Value Chains by the identification of Strategic Global Sectors (MMM)
AERONAUTIC
OFFSHORINGPHARMACEUTICAL
AUTOMOTIVEAGROBUSINESS
ELECTRONICS
LEATHER
TEXTILE
26
WHAT ARE THE INVESTMENT OPPORTUNITIES ?
WHAT ARE THE INVESTMENT OPPORTUNITIES ?INVESTING IN THE EMERGING SECTOR PLANS
LOGISTIC2030 strategy
TOURISM2020 vision
INDUSTRYIndustrial Acceleration Plan
• To improve the country’s logistical
competitiveness
• To reduce logistical costs from 20% to 15% of
• GDP, accelerate GDP growth by winning 5 p.
• An integrated national network of 70 multi- flow
logistical zones
• Industrial PIB : 23% of global PIB in 2020
• Creation of 500.000 Jobs
• Creation of the Fund for Industrial Development
2,5 Bn $
• Allocation of 1000 hectares in rent
• Balance of trade balance
• 20 million of tourists in 2020
• 200.000 new jobs
• Tourism PIB : 6 Billion $ in 2010 to 10,78 billion $ in 2015
GOVERNMENT PRIORITIES MATCHING WITH KEY BUSINESS OPPORTUNITIES !
OPPORTUNITIES
• 22 Industrial platforms & Free Trade Zones
• Government subsidies (Industrial
Development Fund, training support, )
• Components manufacturing
• Cost-effective labor force.
OPPORTUNITIES
• Open-Sky with European air sector
• Major cities with high attractiveness
(Marrakech, Agadir, Tangier…)
• MICE activities
• Hotels, food industry, transport…and other
kind of diverse services
OPPORTUNITIES
• national network of logistics parks (3,300
hectares by 2030)
• Tax incentives
• Duty-free access to European markets
• Cost-effective labor force
WHAT ARE THE INVESTMENT OPPORTUNITIES ?INVESTING IN THE EMERGING SECTOR PLANS
DIGITALPlan 2020
SOLARMorocco Solar Plan 2020
AGRICULTUREMorocco Green Plan 2020
• reduce significantly the digital divide
• Encourage IT use by SMEs
• Achieve 50 % of administrative procedures online
• Modernize agriculture
• 10 billion $ of additional PIB from Agriculture
• 15 billion $ of public and private investment
• Renewable energy >52% of national production by 2020
• Capacity: 2 000 MW of solar power + 2 000 MW of wind power
GOVERNMENT PRIORITIES MATCHING WITH KEY BUSINESS OPPORTUNITIES !
OPPORTUNITIES
• Duty-free access to European markets
• Joining global leaders :DANONE, Nestle,
Altadis, Unilever...
• Industrial scale farming
• Cost-effective labor force.
OPPORTUNITIES
• PPA agreements & market guarantees
• Global supplier investments
• Direct access to European et regional
energy grids
• Business-friendly tax and advanced law
regulations
OPPORTUNITIES
• Exclusive offshoring and IT platform parks
(P2I)
• Morocco’s stock of IT professionals
expected to100.000 by 2020.
• Fiscal incentives
• Support International (Visa) and A
considerably exceptional labor tax relief
WHAT ARE THE INVESTMENT OPPORTUNITIES?CREATING REGIONAL AND AFRICAN VALUE CHAINS
TEXTILE
• UP-stream activities
• Manufacturing
(confection,
manufacturing
• Cotton production
AUTOMOTIVE
• Constructors
• Rang 1 suppliers
• Rank 2 suppliers
• Sourcing : metal, plasturgy,
textile…
CONSTRUCTION
• Real estate Promotion
industry
• Cement, wood industry
• Raw materials
AGRIBUSINESS
• Final production
• 1st transformation industry
• Farming and poultry
industries
WHAT ARE THE INVESTMENT OPPORTUNITIES?BANK OF INVESTMENT PROJECTS
As part of its investment promotion policy, the MoroccanAgency for Investment an Export Development hasestablished a Bank of investment projects with the aim ofassisting the holders of investment projects (both publicand private) operating in different activity sectors in theirsearch for partnership to assist them in carrying out theirprojects in Morocco.
Therefore, the Bank of Projects is intended and presentedto potential partners (local and international) wishing toseize the investment opportunities offered by Moroccoand/or to enter into strategic partnerships.
INDUSTRIES
ACTIVITYTEXTILE
AGRO-
INDUSTRYRENEWABLE
ENERGY
OFFSHORINGRESIDENTIELTOURISMINFRASTRUCTURE
& LOGISTICS
PROJECTS BY SECTOR
31
WHY INVEST IN MOROCCO ?
LIVING MOROCCO BUSINESS EXPERIENCE
WHY INVEST IN MOROCCO ? LIVING MOROCCO BUSINESS EXPERIENCE
DELTA INTERNATIONAL
PROPERTY HOLDINGS
LIMITED
WHY INVEST IN MOROCCO ? LIVING MOROCCO BUSINESS EXPERIENCE
WHY INVEST IN MOROCCO?STRONG COMMITMENT TO WIN-WIN AFRICAN PARTNERSHIP
Africa’s time has arrived. This century must be the Africa’s one.
Extracted from His Majesty The King MOHAMMED VI’s speech,
Dakhla, 16th of March 2019
WHY SHOULD YOU CHOSE MOROCCO ?EXCELLENT INFRASTRUCTURES
MOROCCAN GEOSTRATEGIC VISION TOWARDS AFRICA
Morocco, under the vision of its King, is keen to strengthen its foreign strategy based on balanced and mutually beneficial relationships.
This is marked by the various visits of His Majesty to different African countries.
H.H King Mohamed VI meeting Senegalese
President, HE. M. Macky SALL
King Mohamed VI meeting Rwandese President, HE. M. Paul KAGAME
THANK YOU FOR
YOUR ATTENTION
www.amdie.gov.mawww.mcinet.gov.ma