Moroccan reforms ideal for investment

Located half a world away, Morocco stands at the crossroads of three continents.

Therein lies its attraction and strength for investments explained Secretary General of the Moroccan Foreign Ministry Youssef Amrani.

"Morocco is the only country south of the Mediterranean to obtain an advanced status agreement with the European Union," he told The Korea Herald.

Amrani was in town last week to attend the 5th Commission between the two countries.

The annual meeting was to reinforce the strategic relationship the countries share.

The secretary general believes that there are numerous opportunities for trade between Korea and Morocco.

"Morocco is an open economy, we have free trade agreements with the United States and Europe," he said. "We are an open country so I`d like to invite the business community to come and explore Morocco and discover our market."



The No. 1 export from Morocco currently is phosphate but Amrani believes more can be exported such as agricultural products and general materials.

"(Morocco`s) business community needs to be more aggressive and explore this market," he said. As it stands, Moroccan businesses concentrate their trade to the United States, Europe and African nations.

As for agricultural products, Amrani said that there could be more olive oil sent to Korea.

But if Moroccan companies don`t come to Korea, then Korean firms can always go to Morocco.

The opportunities for foreign investments are plentiful in this North African country.

"Opening a company in Morocco is very easy," he said. "We have a free and fair economic environment and we have modernized our financial system; we have FTAs, and we will facilitate any investment that comes to Morocco."

Amrani explained that their unique approach to facilitate investments make it ideal for any firm to open in Morocco.

To attract foreign direct investments, Morocco offers a wide range of benefits such as tax exemptions, land incentives and many other opportunities.

"We have reformed the financial sectors by reestablishing a new juridical framework permitting a greater mobility of capital and low fees for foreign investors," he said.

Furthermore, Morocco has also reformed its public administration in order to reinforce the principles of good governance at all levels allowing for a better management of public affairs.

"We have 5 percent economic growth and this is very important in the context of the economic crisis," he said.

Other investment opportunities lie in the tourism, agricultural, energy and water sectors.

Morocco plans to receive more than 10 million tourists next year with the hope that tourism will make up 20 percent of its GDP.

"There needs to be a lot of investment in the construction of hotels, infrastructure and transportation, not to mention agriculture," he said.

This does not mean that Morocco is not ready to attract millions of tourists annually.

Their tourism industry is already well-developed and is focused on the country`s coast, culture, and history.

Most of Morocco`s tourists are European. One reason for this is because it has been one of the most politically stable countries in North Africa.

Morocco`s relatively high amount of tourists has been aided by its location, tourist attractions and relatively low prices.

The country has become increasingly price competitive because of the devaluation of the dirham, their currency, and the increase of hotel prices in Spain.

But just because the country is labeled as exotic it does not mean that its transportation infrastructure is subpar. Morocco has an excellent road and rail infrastructure that links the major cities and tourist destinations with ports and cities with international airports.

As for agricultural investment, Amrani explained that the country has set up green plants where foreign investors can set up farms to produce anything from olive oil to wine.

"We have a lot of land and a good climate," he said. "Spanish, French, Chinese and Russians are investing a lot so our political climate is favorable for foreign investments."

Another big plus is the recently finished Port of Tangiers, which is one of the major attractions for manufacturing companies interesting in exporting their goods to the Americas, Europe, Africa and all stops beyond.

"Because of the economic crisis in Europe, Morocco is a perfect location for companies like Nissan and Renault to build their plants there."

The country has made significant improvements in its human rights under King Mohammed VI.

Amrani said that there are two areas the king has emphasized: the fight against corruption and education.

"In order to have a strong economy you need to have educational reforms based on job creation."

The country was internationally recognized for holding a free legislative and local elections, which where in compliance with the international principles of democracy.

To help fight corruption, the king created Transparency Morocco in 1996. Ever since, that day is celebrated as Moroccan Anti-Corruption day.

"The fight against corruption involves all the political parties," he said. "It`s a major issue we are taking now and we know that it`s a long process, it`s a multidimensional strategy that encompasses education, communication and information."

(yoav@heraldm.com)









By Yoav Cerralbo