The Moroccan industry of the leather covers diversified activities. It consists of a branch tannery of exporting base partially but working especially for needs of local market, a leather industry and leather clothes and a shoe industry oriented almost exclusively to export. Considered as a historic sector anchored in the Moroccan culture, the leather sector continues to represent one of the sectors with great potential to the export for the Moroccan industry. Differentiation and upgrading, co-contracting and finished product with higher added, innovation and creativity, responsiveness and service, constitute the framework on which the current and future strategy of the Moroccan leather sector .
After phosphates, the Moroccan pharmaceutical industry constitutes the second largest chemical industry in Morocco, and ranks second in the African continent.
This industry has a large potential for development thanks to the following advantages:
- 50 years of experience;
- Certified companies producing to European and/or American quality standards
- A production capacity of 350 million units per 8-hour shift
- The adoption of the code of Basic Health Insurance introducing the Mandatory Health Insurance scheme (l’Assurance Maladie Obligatoire – AMO)
- The adoption of a new code of medicines and pharmacy providing for the liberalization of the capital stock of pharmaceutical companies.
Morocco is characterized by the manufacture of traditional decorations and this industry is an important factor in the tourism sector which plays an important role in the Moroccan economy. Morocco contains many archaeological sites and beautiful and charming, which helps to reduce unemployment and work.
Although they represent only 31% of all companies in this sector, the manufacture of insulated wires and cables, as well as electrical distribution and control equipment, make up 86% of exports, 79% of investments, 72% of production and 65% of the added value of the electrical industry. The electrical sector has shown great dynamism since the launching the Global Rural Electrification Programme (PERG) in 1995, carried out mainly by Moroccan companies with locally manufactured products. The programs to reduce the housing shortage also had a positive impact on the sector, insofar as Moroccan companies have managed to adapt their products to the needs of different social strata.
The National Federation of Electricity, Electronics and Renewable Energies (FENELEC) is working with the Delegate Ministry in charge of foreign trade and with “Maroc Export” as part of the national strategy for the promotion of Moroccan exports, actively participating in export caravans organized in a number of African countries. The Electrical sector is resolutely outward-facing, especially toward the African market, in particular exporting Morocco's expertise in the field of rural electrification.
Chemical and para-chemical
The Chemical and para-chemical industries (ICP) occupy an important place in the national economy through their product diversity and their organic link with upstream and downstream economic activities. From 2003 to 2013 these industries have experienced steady growth, partly as a direct consequence of the government's policy for the sector, and partly through a change in consumer habits. The sector benefits from the presence of the Office Cherifien des Phosphates (OCP), a leader in the phosphates industry, whose activities represent 52% of the sector's turnover, 90% of exports, 67% of investment and 22% of jobs.
The easy access to raw materials at low prices (phosphate) and transfer of know-how from OCP in terms of training, subcontracting, and research and development, opens additional development perspectives for new phosphate industrial activities in relation to this leading company.
Metallurgy and metalworking are the main branches of Mechanical and Metallurgical Industries (IMM): they account for 82% of exports, 94% of investment, 91% of production and 82.6% of employment of IMM. The IMM sector is an essential link in the manufacturing supply chain, given its role as supplier and subcontractor for many markets (notably construction, energy, transport and agriculture). In this respect the IMM sector can only benefit from the anticipated development of these markets thanks to the support of major national strategies.
Electronics is a supplier of the aerospace, automotive and railway industries, as well as the fields of defence and security. In Morocco this sector has experienced a steady growth in recent years with increasing opportunities, namely:
- The development of more and more products with a high added value
- The emergence of better integrated subcontractors
- The increase in the amount of electronics in automotive, aerospace, rail, renewable energy and defence systems. The sector is also likely to benefit from the possibility of the transfer of a significant part of Western European electronics to offshoring in Morocco.
Targeting this market encourages the emergence of new high added value activities such as lighting and energy efficiency, the electrical sector, public and private security, and renewable energy. To achieve Morocco's full potential in electronics, the state is determined to support the development of the sector through the establishment of an offer focused on the development of speciality electronics, allowing the country to become a platform of production and export to Europe.
The development of renewable energies is at the heart of the national energy policy which calls for a diversification of energy sources by 2020 with 42% of the total electric power installed provided by green energies. Energy efficiency along with the development of renewable energy is a priority of the national energy strategy: the aim is to save 12% of energy consumption by 2020 and 15% by 2030. With this in mind, action plans for energy efficiency were implemented in all key sectors, particularly transport, industry and construction. Given the huge potential for renewable energy (solar and wind) available to Morocco, the building of a diversified energy mix benefiting renewable energy has been planned in order to satisfy growing electricity demand, preserve the environment, and reduce dependence on energy from other countries. To meet these challenges Morocco has launched a very large scale integrated programme for producing electricity from renewable energy sources. This is one of the largest projects in the world, aiming at a total capacity of 4,000 MW by 2020, thanks to the construction of new wind farms and the construction of five solar power plants.
Morocco is the second largest exporter of phosphate in the world. It accounts for one third of the world's phosphate reserves. The industry relies on many local industries, namely the fertilizer industry, covering all its domestic needs. What is extracted from phosphate is about six million tones, which is equivalent to a double world stock of this material.
The textile sector is of strategic importance as it largely contributes to the national industry aggregates (27% of jobs and 7% of the industrial added value). Considering the context of the economic crisis hitting principal partners (notably Spain and France which account for nearly 60% of exports in the sector), the textile and leather sector has proven to be quite resilient. With a view to attracting better profits from its potential and to assure a sustainable growth, the state has developed a comprehensive vision, integrating both the export and the domestic market, an objective pursued within the framework of Industrial Acceleration Plan 2014-2020. Ongoing support will be especially drawn to the emergence of a competitive and innovative textile sector, able to draw more foreign direct investment, notably Chinese, and develop win-win partnerships.
The Moroccan automotive industry has risen to sustained levels of growth over the last decade. Its performance is particularly remarkable for export and in terms of job creation, indicators for which the segment generated an annual double-digit growth. The positioning of Morocco as aplatform of production and export of equipments and motor vehicles is consolidated by the setting-upof renowned foreign groups such as RENAULT, SNOP, GMD, BAMESA, DELPHI, YAZAKI, SEWS, SAINT-GOBAIN and more recently Peugeot Citroën. Strategic sector in the national industrial policy, since the 2000s, the automobile industry release a two-digit annual growth towards the creation of employment and export.
During recent years the Moroccan aeronautics sector has shown an outstanding dynamism and remarkable growth. The development of varied sectors, especially in wiring, mechanics, sheet metal work, composites and mechanical assembly, has made Morocco a preferred destination for subcontracting in aeronautics.A clear illustration of the growth of the aeronautics industry in Morocco is the establishment of the giant Bombardier group that is now a force driving the development of the sector, thanks to the substantial economic benefits resulting from the development of Moroccan exports and local industry. With an investment of around 200 million US dollars, the Bombardier project will ultimately create 850 direct jobs and 4,400 indirect jobs.
The building materials sector is of significant importance to national industry due to its relationship with the other economic activities, and most particularly with building, tourism, and infrastructure work.In recent years, with the sector policies pursued by the government in housing, tourism, and the growth-driving industries, the building materials industry has seen an unprecedented development that the Industrial Acceleration Plan means to maintain and strengthen.
A Promising Sector For The National Economy
Offshoring is a promising sector for the national economy because of its potential to create jobs for young people and its contribution to the country's balance of trade.
Morocco was elected the best offshoring destination for the year 2012 by the European Outsourcing Association (EOA). By 2020, the Industrial Acceleration Plan aims at achieving a GDP of 16 billion dirhams and creating a workforce of 100,000 jobs.