More than 20,000 Spanish companies are already doing business with Morocco and 800 have set up shop in the country.
These figures translate into over 8,800 million euros in Spanish exports to Morocco. Spain has become the most important trading partner of the North African nation, thereby eclipsing France, with whom Morocco had historically shared the closest bond.
Together, Spain and Morocco represent a market of over 83 million people, with a GDP similar to Canada’s.
Spain’s neighbour is undergoing a period of reforms which has improved its rating according to all the indicators of the World Bank’s Doing Business Report, although it remains quite far from Spain and the rest of the Eurozone.
In another demonstration of progress, the Moroccan government just launched the second phase of its 2021-2025 Industrial Acceleration Plan (PAI). The first plan saw the development of large-scale infrastructure modernization projects with a strong “pull”, many of which were led by Spanish companies.
For Spanish companies interested in doing business with their southern neighbors, Francisco Javier Goñi, Director of Bankia’s new office in Casablanca, recommends patience above all else. Business relationships in Morocco are developed based on trust, thus rendering short-sightedness an ineffective trait.
ICEX, Spain’s national trade and investment agency, has offered a very relevant vision of the country as the “Door to Africa”. Their 2018 report reveals that Spanish investments which went through Morocco but were destined to another African country reached nearly 8 billion euros in 2016.
Why is this country becoming an entrance point for the rest of the continent?
First, because of its strategic location. Its proximity to the European Union and its connections, both by sea and by air, along with its solid infrastructure, make it a logical choice for investors with interest in the continent.
Second, its work environment. The country boasts a wealth of young, well-trained workers, as well as low labor costs and various investment incentives, fruit of initiatives such as the Industrial Acceleration Plan previously mentioned.
Third, its growth: business between Morocco and Sub-Saharan Africa grew at an annual rate of 9.1% between 2008 and 2016.
Without question, the Moroccan market holds great opportunity. At Gedeth, we can help you take advantage of this opportunity, thanks to our network of contacts and our knowledge of the market.