Writing by the Editor |
Morocco has long sought to improve its standing on the international stage by positioning itself as a constituent player in global value chains. Despite the challenges faced by the Moroccan economy, the health crisis linked to Covid19 has brought in its wake the opportunity to strengthen competitive capacities and positioning in global value chains.
In such a constraining context, Morocco has implemented reforms enabling it to maintain relatively stable production despite the disruptions in global supply chains.
The kingdom has also worked to strengthen its local manufacturing possibilities to reduce its dependence on imports. Its remarkable location, as a gateway to Africa, with close trade links with Europe, the Middle East and Africa, provides it with favorable opportunities for the production and distribution of goods in these regions. and for the development of close trade relations with these regions.
Requirements
Morocco has long, economic analysts remind us, occupied an important place in international trade thanks to its geographical location at the crossroads of the African, European and Asian continents. It has developed close trade relations with Europe, the Middle East and Africa, and has a diversified economy that includes sectors such as agriculture, industry, tourism, financial services and call centers…
All this has enabled Morocco to adapt to changes in international demand and to position itself as a serious player in global value chains.
It has thus distinguished itself in the aeronautical industry, hosting several large companies such as Boeing, Bombardier and Safran. Many assets have favored the development of this sector, including a skilled and abundant workforce, modern infrastructure, tax incentives and a strategic geographical position. The automotive industry is another fundamental sector for Morocco, which has become a key production center for European car manufacturers.
The country has a competitive advantage in terms of production costs and skilled labor, and has attracted investment from several large companies. Agriculture, for its part, is considered symptomatic of the Moroccan economy, representing around 15% of GDP and employing almost 40% of the working population.
In a related report, the country is ranked as the world’s leading exporter of phosphates and occupies a reputedly notable place among the main exporters of agricultural products. The textile sector is not to be outdone and displays real skills in the production of cotton, wool and silk clothing, et has several large textile companies that export to Europe and the United States.
The diagnosis, summarized above, suggests great opportunities for capitalizing on comparative advantages to attract investment and strengthen the position of a regional hub for trade.
In this perspective, the Kingdom has put in place policies to encourage foreign investment and promote innovation, especially in the areas of logistics, the automotive industry, renewable energies, information technology and communication (ICT), and financial services…
The country has also established strategic partnerships with many countries, such as China, India, the United States and the European Union to strengthen its position on the international economic scene.
Thus, in terms of potential value chains, Morocco can, according to forecasters, rely on several sectors in order to consolidate its ambitions, within the framework of the reorganization of global value chains.
In renewable energies, for example, which represent a rapidly growing sector throughout the world, it is possible to capitalize on a certain number of assets to develop this industry, particularly in solar and wind power.
Generally speaking, other significant opportunities for export diversification can still be explored, mainly in key sectors such as agri-food, automotive and information technology…
However, the forecasters urge to quickly introduce the factors of adaptation to the changes and to invest in the infrastructures necessary to support these new industries.
It should be noted that the risks must be accurately assessed to better face increased competition from other countries that are also seeking to diversify their exports and strengthen their regional supply chains.
Moreover, the country must ensure that human resources are qualified to meet the demands of digital industry and advanced technologies, in order to maintain competitiveness in the global market. Morocco could also be vulnerable to fluctuations in commodity prices, which can affect industries and agriculture.