Some of the world’s most prominent automotive brands are setting up shop in the Kingdom of Morocco. Last year, French multinational vehicle manufacturer Renault S.A inaugurated a $1.5 billion giant car factory in Melloussa, a small cosmopolitan town close to Tangiers, a commercial city in the northern region of Morocco. Renault now manufactures low-cost cars under the Dacia and Renault brands at the plant, which has an annual production capacity of 150,000 cars.
Similarly, in February this year,Bombardier Aerospace announced that it was shifting production of components such as flight controls for its CRJ series airliner to a transitional facility at the Mohammed V International Aiport in Nouaceur, in the greater Casablanca region. The company is already building a permanent plant in the free zone enclave of Casablanca, very close to its current transitional facility. Delphi, a global supplier of electronics and technologies for the automotive industry has operated a factory in Morocco since 1999.
Morocco is aggressively marketing itself as a regional automotive hub and an attractive investment destination to the bigger players in the industry. The country’s efforts to attract investments in recent years are paying off, with international juggernauts such as Renault,Dell, Bombardier, Delphi, GDF Suez andAcciona undertaking major investments in Morocco.
I recently caught up with Ahmed Fassi Fihri, Managing Director of the Moroccan Investment Development Agency (AMDI) in Casablanca. He took some time to explain why Morocco is an attractive investment destination for the world’s major automotive companies, and explained 10 reasons why companies are investing in the Kingdom.
Among the most compelling reasons: Morocco’s political stability, steady economic growth, a thriving port and a strategic geographic position. In the midst of the turmoil seen in the North Africa region, Morocco has adopted a new Constitution that empowers Parliament by enlarging the domain of lawmaking and recognizing the opposition’s status, enlarges individual and collective liberties and strengthens human rights. Economic growth o has averaged 4.9% in the past five years, while inflation has stayed below 2%.
Morocco has made improvements to its infrastructure to take advantage of its proximity to Europe. Its Tanger-Med port, located less than 10 miles from Europe, is one of the busiest ports in Africa and will have an 8 million container capacity by 2017. The port is connected by rail and highway to free zones and industrial parks. Tanger-Med was especially important to Renault’s $1 billion investment, since the French manufacturer’s production in Morocco is intended for export. A rail track connects the factory directly to Renault’s terminal at the port.
Morocco also benefits from being at the crossroads of the world’s most important maritime trade routes. This position is a major factor in Morocco’s aspiration to become a global exporter.
Mfonobong Nsehe, Contributor
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