Capitalising on achievements and analysing challenges for the development of Morocco’s national industry

1. Industry as a key pillar of the country’s comprehensive and sustainable development 
2. CGEM underlines the challenges facing the national industry 
3. Moroccan industrial sector achievements in figures 

Capitalizing on the achievements and analyzing the challenges facing the Moroccan national industry were the main objectives of the second edition of the National Industry Day, organized by the Mohammed VI Polytechnic University in collaboration with the General Confederation of Moroccan Enterprises (CGEM) in Benguerir.   

The National Industry Day is, according to the participants, a continuation of the success of the first edition; as well as aiming to be a platform for discussion on key issues for the development of national industry and the promotion of its position in the global economy in perpetual transformation.   

The challenges of industrial sovereignty and economic independence have become strategic priorities for Morocco as it seeks to develop its infrastructures and skills to build Industry 4.0 and 5.0. 

Industry as a key pillar of the country’s comprehensive and sustainable development 

The President of the Government, Aziz Akhannouch, highlighted Morocco’s achievements in the field of industry over the past 25 years, stating that ‘industry is a key pillar for the comprehensive and sustainable development of the Kingdom, economically and socially; thanks to the opening of the sector and the adoption of ambitious and clear strategies accompanied by a network of high quality infrastructures’. 

‘The development of all industrial strategies through structural reforms to improve the business climate and the formation of skills through new regulatory institutions, such as the Cities of Professions and Skills, will increase the competitiveness of the national industry,’ he added. 

Akhannouch pointed out how his government seeks to consolidate the dynamism of the industrial sector through the creation of the Fund for the Subsidy of Innovation, which has been successful since its creation in 2023, in the face of successive global changes; mentioning the relevance of the Investment Charter and the Moroccan Digital Morocco 2030 strategy in this regard.  

Morocco is also committed to decarbonisation in industrial production by working on the field of green hydrogen through the Moroccan offer, which has attracted major players in the field and aims to be one of the most important factors in the energy transition and sustainable development of the Moroccan kingdom.  

The head of the Moroccan government recalled the advantages of the Alawi kingdom, given its political stability and macroeconomic balance, which recently made it an international destination for players in developed industrial sectors such as the automotive industry, since Morocco is the first producer and manufacturer of tourist cars in Africa and the first exporter of thermal cars to the European Union. 

‘Morocco has made giant strides in the manufacture of electric cars and batteries, which has enabled it to position itself as an interesting player in this international value chain alongside the world’s major manufacturers. Aeronautics is also experiencing a continuous development reflected in the increase of exports with the presence of more than 140 international actor in the domain on Moroccan soil,’ concluded Akhannouch. 

CGEM underlines the challenges facing the national industry 

Chakib Alj, president of the General Confederation of Moroccan Enterprises (CGEM), listed the current and future obstacles and challenges to be overcome in order to strengthen an internationally competitive national industry, underlining the following challenges: 

• Industrial sovereignty that needs to develop more local solutions to secure supply chains, through the implementation of a national strategy to promote ‘Made in Morocco’. 
• Upgrading, which requires enriching industrial ecosystems through technological innovation, business support and vertical and horizontal integration. 
• Integration: with 69%, Morocco is at the same level as many producing countries such as Germany and Japan; but it must apply the same logic to the textile and agri-food sectors, where countries such as Turkey and China are achieving rates above 70%. 
• Disparities between regions: industrial development in the regions must be at the heart of government action. Currently, almost 80% of industry is concentrated in the El Jadida-Tangier axis. It is therefore essential to develop the industrial potential of Morocco’s other regions, which remains largely under-exploited.  
• Access to land, especially outside the major cities, where the scarcity of land, its high cost and administrative complexity are obstacles to industrial investment. 
• A young and growing population, with 300,000 people entering the labour market each year, which implies expanding employment opportunities beyond the big cities and keeping local talent in their regions by generating attractive jobs for this category. 
• A major overhaul of the vocational training system, in particular the continuing education system. Young people must be massively trained for industrial jobs, with greater involvement of the private sector, and effective programmes must be put in place to update and retrain workers. 
• The complexity and multitude of administrative formalities and authorisations involved in the act of investing is another challenge to be overcome. 
• Financing as a real problem for manufacturers; this calls for the introduction of more financing mechanisms to develop the industry, in cooperation with banks, which should continue to support the business fabric. 

Chakib Alj pointed out that ‘the CGEM has just completed a study on the complementarities between the value chains of the countries of the continent, with a special focus on four sectors: agri-food, textiles, electronics and automotive’. 

‘These complementarities will be transformed into concrete opportunities in collaboration with our African partners, in accordance with the vision of His Majesty the King,’ added the CGEM president. 

Moroccan industrial sector achievements in figures 

Ryad Mezzour, Minister of Industry and Trade, shed light on Morocco’s industrial achievements and successes over the past 25 years: 

• – The increase in turnover from 185 billion dirhams in 1999 to 816 billion dirhams in 2023. 
• – Industrial exports have increased 6.2 times from 61 billion dirhams in 1999 to 377 billion dirhams in 2023. 
• – An increase in the number of industrial enterprises from 4,500 in 1999 to 13,000 in 2023. 
• – From about 477,000 jobs created in 1999 to 1 million today. 
• – 44% of industrial jobs are held by women in 2023. 
• – 88% of goods exports are manufactured goods by 2023.  
• – 71% of the industrial sector’s capital stock is of Moroccan origin by 2022. 
• – 1 billion dirhams per day of Moroccan industrial products exported.  
• – Morocco first provider of direct investment abroad with an average of 33% over the last 5 years. 
• – First car producer in Africa with 148 billion dirhams of exports in the automotive sector in 2023 and +69% of the local integration rate in the automotive sector. In 2023, it could manufacture more than 570,000 cars, i.e. one car every minute. 
• – 23 billion dirhams exports from the aeronautics sector in 2023 with 42 % local integration rate in aeronautics.  
• – World’s leading exporter of phosphates and demolished and world leader in the food systems processing industry.  
• – More than 22 industrial acceleration zones.  

Ryad Mezzour argued that ‘Morocco has become today a global destination in prominent sectors such as automotive where it is ranked as a continental leader, as well as aeronautical industries; which has strengthened the resilience of the industry’; underlining the priorities defined in the royal vision for sovereignty: 

• – Sustainable jobs  
• – Human capital  
• – Innovation  
• – Decarbonisation  
• – Water preservation  
• – Upgrade