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U.S. Department of State
Morocco Country Commercial Guide
Office of the Coordinator for Business Affairs
MOROCCO
FY 1996 COUNTRY COMMERCIAL GUIDE
This Country Commercial Guide (CCG) presents a comprehensive look at
Morocco's
commercial environment through economic, political and market analysis.
The CCGs were established by recommendation of the Trade Promotion
Coordinating Committee (TPCC), a multi-agency task force, to consolidate
various reporting documents prepared for the U.S. business community.
Country Commercial Guides are prepared annually at U.S. Embassies
through the combined efforts of several U.S. agencies.
TABLE OF CONTENTS
I. EXECUTIVE SUMMARY
II. ECONOMIC TRENDS AND OUTLOOK
- Major Trends and
Outlook........................................
- Principal Growth
Sectors........................................
- Government Role in the
Economy..................................
- Balance of Payments
situation...................................
- Infrastructure
Situation........................................
III. POLITICAL ENVIRONMENT
- Nature of Political Relationship with the United
States.........
- Major Political issues Affecting Business
Climate...............
- Brief Synopsis of Political
System..............................
IV. MARKETING U.S. PRODUCTS AND SERVICES
- Distribution and Sales
Channels.................................
- Use of Agents & Distributors; Finding a
Partner.................
-
Franchising.....................................................
- Direct
Marketing................................................
- Joint
Ventures/Licensing........................................
- Steps to Establishing an Office................................
- Selling Factors/Techniques.....................................
- Advertising and Trade Promotion................................
- Pricing Product................................................
- Sales Service/Customer Support.................................
- Selling to the Government......................................
- Protecting Your Product from IPR Infringement..................
- Need for a Local Attorney......................................
V. LEADING SECTORS FOR U.S.EXPORTS AND INVESTMENT
- Best Prospects for Non-Agricultural Goods and Services.........
- Best Prospects for Agricultural Products.......................
- Significant Investment Opportunities...........................
VI. TRADE REGULATIONS AND STANDARDS
- Trade Barriers, Tariffs, non-Tariff barriers and Import Taxes..
- Trade Liberalization for Key Agricultural Commodities..........
- Customs Valuation..............................................
- Import Licenses................................................
- Export Controls................................................
- Import/Export Documentation....................................
- Temporary Entry................................................
- Labeling, Marketing Requirements...............................
- Prohibited Imports.............................................
- Standards......................................................
- Free Trade Zones/Warehouses....................................
- Special Import Provisions......................................
- Membership in Free Trade Agreements............................
VII. INVESTMENT CLIMATE
- Openness to Foreign
Investment.................................
- Conversion and Transfer
Policies...............................
- Expropriation and
Compensation.................................
- Dispute
Settlement.............................................
- Political
Violence.............................................
- Performance
Requirements/Incentives............................
- Right to Private Ownership and
Establishment...................
- Protection of Property
Rights..................................
- Regulatory System: Laws and
Procedures.........................
- Efficient Capital Markets and Portfolio
Investment.............
- Bilateral Investment
Agreements................................
- OPIC and Other Investment Insurance
Programs...................
-
Labor..........................................................
- Foreign Trade Zones/Free
Ports.................................
- Capital Outflow Policy.........................................
- Major Foreign Investors........................................
VIII. TRADE AND PROJECT FINANCING
- Banking
System.................................................
- Foreign Exchange Controls Affecting
Trading....................
- General Financing
Availability.................................
- How to Finance Exports/Methods of
Payment......................
- Types of Available Export Financing and
Insurance..............
- Project Financing
Available....................................
- List of Banks with Correspondent U.S. Banking
Arrangements.....
- Projects Scheduled for Financing by World Bank and
AFDB........
IX. BUSINESS TRAVEL
- Business
Customs...............................................
- Travel Advisory and
Visas......................................
-
Holidays.......................................................
- Business
Infrastructure........................................
X. APPENDICES
APPENDIX A: Country
Data.........................................
APPENDIX B: Domestic
Economy.....................................
APPENDIX C:
Trade................................................
APPENDIX D: Investment
Statistics................................
APPENDIX E: US and Country
Contacts..............................
APPENDIX F: Market
Research......................................
APPENDIX G: Trade Event
Schedule.................................
I. EXECUTIVE SUMMARY
Morocco, a country of 28 million people, the size of Oregon and
Washington combined, enjoys a healthy commercial environment marked by a
growing spirit of entrepreneurship and a pragmatic monarchy.
The Moroccan government has pursued an economic reform program supported
by the International Monetary Fund (IMF) and the World Bank since the
early 1980's.
A cautious but generally successful privatization program of over 100
government entities, including the important energy sector, is helping
to kick-start interest in financial services and the stock exchange.
Mobile communications, franchising and even Internet are gaining favor.
The steady, fruitful rains of 1993-1994 however, have surrendered to the
critical drought of 1995. Wheat, corn, vegetable oil and animal feed
imports are rising. Water projects, well digging and new irrigation
technologies are being sought. While Morocco's textile and clothing
industries bolster the country's other star export earners of phosphate
and fish, the drought's impact is cutting consumer spending and
confidence.
Morocco's once healthy foreign exchange reserves seem headed for a fall
in 1995 as food imports increase sharply. Despite the drought and a drop
in tourism and workers remittances, many foreign investors view Morocco
as a profitable market as investment inflows continue to grow as they
did in the early 1990's.
Morocco continues to develop further an already market-oriented
infrastructure. Telecommunications, roads, water distribution and
private energy production lead the multilateral bank lending programs to
Morocco. Along with creating more jobs and improving health delivery
services the government also seems pledged to welding a business
friendly network onto industrial growth and agrarian abundance. That
determination is further punctuated by the absence of civil and
religious unrest as currently seen in Morocco's eastern neighbor,
Algeria.
While five major Moroccan business groups appear to dominate the
economy, all having some U.S. business interests, the market has ample
room for U.S. marketers. Key government and business brokers realize
Morocco's horizons will be brighter with a more liberal and open
commercial sector. Over 130 Moroccan firms represent hundreds of U.S.
products and services. Boeing dominates the government-owned Royal Air
Maroc. A variety of consumer and industrial products are produced by
U.S. firms in Morocco.
Hassle factors including contraband and judicial corruption do exist and
can present serious obstacles. Many of the hassles are really cultural
glitches and misperceptions due to many U.S. firms failing to gear their
operations to a smaller market. U.S. firms are advised to provide sales
and technical documentation in French (modern business operates
primarily in French), and employ patience, tenacity and personal
engagement with their Moroccan counterparts. However, as one long time
Moroccan-based American businessman recently reported, "U.S. products
and services are quietly changing trade patterns away from the EU into
direct trade contact with the U.S. parent company. It's slow to change,
but the trend is there."
NOTE:
Country commercial guides are available on the National Trade Data Bank
on CD-ROM or through the Internet. Please contact STAT-USA at 1-800-
STAT-USA for more information. To locate country commercial guides via
the Internet, please use the following world wide web address: WWW.STAT-
USA.GOV. CCGS can also be ordered in hard copy or on diskette from the
National Technical Information Service (NTIS) at 1-800-553-NTIS.
II. ECONOMIC TRENDS AND OUTLOOK
Major Trends and Outlook
Morocco boasts the largest phosphate reserves in the world, a diverse
agricultural sector, rich fisheries, a sizeable tourist industry, a
growing manufacturing sector (especially clothing), and considerable
inflows of funds from Moroccans working abroad. The production and
export of cannabis also play a major role in the Moroccan economy,
particularly in the north. Most of Morocco's trade is with Europe, with
France alone accounting for about a quarter of Morocco's imports and a
third of its exports.
The Moroccan government has pursued an economic reform program supported
by the International Monetary Fund (IMF) and the World Bank since the
early 1980s. It has restrained government spending, revised the tax
system, reformed the banking system, followed appropriate monetary
policies, eased import restrictions, lowered tariffs, and liberalized
the foreign exchange regime.
The reforms have contributed to rising per capita incomes, lower
inflation, and narrower fiscal and current account deficits. While the
overall trend has been positive, there have been wide year-to-year
fluctuations in the economy due to exogenous factors such as rainfall
and conditions in Morocco's export markets. The economy is expected to
contract in 1995 due to a sharp fall in cereals production caused by
inadequate rainfall. Inflation has been running at about five percent
in recent years, although it appears to be accelerating.
Principal Growth Sectors
Agriculture: Agriculture accounts for between 15 and 20 percent of GDP
(depending on the harvest) and employs about 40 percent of the
workforce. Morocco is a net exporter of fruits and vegetables, and a
net importer of cereals. Over 90 percent of agriculture is rain-fed.
Fall cereals (wheat and barley) production is expected to decrease from
a record 9.2 million metric tons in 1994 to 1.6 million metric tons in
1995 due to a devastating drought. Production of most other crops was
also down. Moroccan fruits and vegetables exports face increasing
difficulties with EU trade barriers.
Fishing: The fishing industry is a key sector of the Moroccan economy,
employing abut 300,000 people directly and indirectly and accounting for
nearly USD 500 million in export earnings. Unlike the 1980s when
catches, income, and job creation were rising rapidly, growth in the
fishing sector in the past three years has been modest. The industry is
now occupied with two major issues: rising tension with the EU over
Moroccan efforts to reduce the number of Spanish boats fishing Moroccan
waters and Moroccan government efforts to strengthen an industry
suffering from overfishing, diminished investment, lower prices in the
key Japanese market, and heavy debt incurred in the 1980s.
Industry: Industrial output rebounded in 1994 thanks largely to strong
agro-industrial growth attributable to good harvests and increased
production of phosphate derivatives (e.g. phosphoric acid and
fertilizer) as a result of increased world demand. Electricity
generation grew sharply as new thermal generating capacity came on line
and hydroelectric production rebounded due to increased rainfall.
Prospects for 1995 are diminished by lower domestic demand resulting
from the poor harvests. World market conditions will determine
developments for Morocco's export industries, notably phosphate
derivatives, processed agricultural products and clothing. European
demand for Moroccan clothing began to increase in 1994. Most of the
clothing production is done under subcontract with European companies
who provide the inputs and receive the finished garments.
Mining: Morocco has the world's largest phosphate reserves. The export
of phosphates and its derivatives account for over a quarter of Moroccan
exports. Phosphate production and exports were up in 1994 in line with
increased demand in world markets, but show signs of slowing in early
1995.
Morocco's other mineral resources include copper, fluorine, lead,
barite, and iron. Globally, Morocco is a significant producer and
exporter of industrial minerals. It is also a significant regional
producer of base metals, primarily for Europe. Production of zinc,
lead, copper and silver increased in 1994.
Government Role in the Economy
The Moroccan government has reduced its role in the economy over the
last decade. In particular, it ceased direct credit and foreign
exchange allocation, reduced trade barriers, restrained government
spending and taxes, and embarked on a privatization program.
Monetary Policy: The monetary authorities restrained monetary growth in
1992 and 1993 through a series of increases in reserve requirements. It
eased its monetary policy beginning in late 1993 by lowering the reserve
requirement. The money supply accelerated in 1994, although monetary
growth appears to be slowing in early 1995. The system of linking bank
lending rates to banks' cost of funds was changed in 1994 in order to
lower lending rates, although they remain relatively high.
Fiscal Policy: While the Moroccan government has reduced its budget
deficit over the last decade, it has had increasing difficulty in recent
years meeting budget targets. The 1994 budget called for a deficit
equal to 1.5 percent of GDP, but the actual deficit was over three
percent of GDP, mainly because revenues were well below projections.
The deficit would have been even higher were it not for lower-than-
budgeted capital spending. The 1995 budget calls for a fiscal deficit
equal to 2.5 percent of GDP, but the actual deficit will likely be
higher.
Foreign Exchange: The Moroccan dirham is convertible for all current
transactions (as defined by the IMF's Article VIII) as well as for some
capital transactions, notably capital repatriation by foreign investors.
Foreign exchange is available through the commercial banks on
presentation of appropriate documents. The Central Bank sets the
exchange rate for the dirham against a basket of currencies of its
principal trading partners. The rate against the basket has been steady
since a nine percent devaluation in May 1990, with changes in the rates
of individual currencies reflecting changes in cross rates. The dirham
has therefore appreciated against the dollar during the first half of
1995 as the dollar has depreciated against many of the other currencies
in the basket.
Foreign Trade: Morocco gradually reduced barriers to trade over the last
decade, although the level of protection remains high. In recent years
the government replaced quantitative restrictions with tariffs for all
but a few goods, notably foodstuffs and textiles. It has postponed
replacing non-tariff barriers with tariffs on cereals, vegetable oil and
sugar to July 1, 1995. In mid-1995 it backtracked on trade
liberalization by reinstating the need to obtain government
authorization to import bananas.
Privatization: The 1989 privatization law calling for the privatization
of 112 firms by the end of 1995 was amended in late 1994 to add two
additional firms and extend the deadline to the end of 1998. As of mid-
1995, the government had sold some or all of its shares in about 30
entities.
European Union Trade Preference: Moroccan industrial exports currently
enjoy essentially free access to the European Union (EU), but many
agricultural exports are limited by tariff and non-tariff barriers.
Morocco hopes to obtain better access for its agricultural products in
exchange for elimination of Moroccan customs duties on EU goods.
Detailed negotiations are just beginning, and any resulting reduction in
Moroccan tariffs would likely be phased in over a long transitional
period.
Balance of Payments Situation
Morocco runs a chronic merchandise trade deficit which is generally
offset by receipts from tourism, workers remittances and foreign
investment. Morocco's foreign exchange reserves grew steadily in recent
years, reaching seven months' worth of merchandise imports by the end of
1994. A recent widening of the merchandise trade deficit and falling
receipts from tourism, workers remittances and foreign investment have
begun to put pressure on Morocco's foreign exchange reserves, which
started to fall in early 1995. Reserves are likely to continue to fall
in 1995 as imports of cereals increase sharply.
Merchandise Trade: The trade deficit widened in 1994 as both imports and
exports grew by about seven percent. The growth in exports was led by a
ten percent increase in phosphates and phosphate derivatives.
Agricultural exports also rose thanks to good harvests. Prospects for
1995 are for slower growth in exports of phosphates and agricultural
products, but increased clothing exports. Most categories of imports
rose, reflecting the strong economy, but cereal and feed imports fell
sharply due to increased domestic production. The situation will likely
be reversed in 1995, with a large growth in cereals and feed imports and
little growth in imports of other goods.
Tourism: Tourism receipts fell slightly in both 1993 and 1994. The
decline in receipts accelerated in late 1994 when the Moroccan
government closed its border with Algeria.
Workers' remittances: Remittances also fell in both 1993 and 1994,
reflecting in part the tighter immigration policies in Europe and
diminishing ties between Moroccans already in Europe and their homeland.
Foreign investment: Foreign investment inflows fell in 1994 following
several years of large increases, although U.S. investment continued to
grow in 1994. Foreign investment will likely grow again in 1995.
Foreign Debt: Morocco's foreign debt burden has declined steadily in
recent years. Morocco last rescheduled its Paris Club debt in 1992.
The current debt service ratio of 30-35 percent of exports of goods and
non-factor services appears sustainable, and no further rescheduling is
expected.
Infrastructure Situation
Morocco is making the development of its communication and
transportation networks a top priority. With many improvements already
achieved and several projects underway in these two sectors, Morocco's
infrastructure for the distribution of goods and services is good.
Roads and Highways: Morocco's 50,000 kilometer (km) road network is
among the best in Africa. All parts of the country are readily
accessible by well-surfaced roads. Most agricultural and manufactured
goods move by road. Highways are under construction to relieve traffic
congestion from Tangier in the North to the main economic and commercial
city of Casablanca. Eight hundred kilometers of existing roads are
currently being improved with financial assistance from the World Bank.
Airports: There are eleven major airports in the country. The major
airport "Mohammed V", located 35 km south of Casablanca, offers about
fifty regular flights per day to Europe, the United States, Canada, The
Middle East and several African cities. Merchandise can be transported
to and from the airport by truck or by train.
The Rail Network: The rail company, the "Office National des Chemins de
Fer" (ONCF), plays an important role in the Moroccan economy. It
employs 13,820 people and operates on some 2,000 km of track. ONCF
handles the transportation of phosphates, fertilizers, chemical products
and other minerals. Ambitious plans are scheduled (but not funded), to
modernize and extend the network.
Marine Transportation: There is frequent scheduled ferry service to and
from Spain and France for tourists. The port of Casablanca handles 50
percent of the country's merchandise imports and exports. There are
ports throughout the country. The National Port Authority the "Office
de Développement et d'Exploitation des Ports" (ODEP) is the managing
authority.
Telecommunications: The telephone system has been greatly improved in
the last five years. It is now possible to call most countries by
direct dialing. Telex and telefax communications to most parts of the
world are widely used. The use of cellular phones is spreading.
Major Infrastructure Projects Underway: The major infrastructure
projects currently open to foreign investors include:
1. Telecommunications
The post and telecommunications company, the "Office National des Postes
et Télécommunications" (ONPT), is planning to expand and upgrade its
telephone network. Two tenders have already been issued to purchase
fiber optic transmission equipment for urban networks in Rabat, Fez,
Meknès, Taza, Oujda and Nador and for inter-urban networks. The first
project is financed by the European Investment Bank, while the second is
financed by the World Bank. There are numerous competitors in the
telecommunication sector. The major ones are Alcatel, Bell Canada,
Northern-Telecom, Siemens, NEC, Nokia, and Ericsson.
2. Transportation
The Moroccan government continues to extend and improve the 50,000 km
national road network. There are projects to construct four new
highways: Rabat-Fez (200 km); Casablanca-Marrakech via Settat (200 km);
Casablanca-El Jadida (60 km) and Tétouan-Ceuta (55 km). GOM is seeking
foreign financing to implement these projects.
3. Power Generation
To satisfy Morocco's growing demand for electricity, the Office National
de l'Electricite (ONE), has issued tenders to construct two independent
electric power plants, a 300/600 MW steam thermal power station using
fuel and gas for the city of Mohammedia and a 300/500 MW combined-cycle
power station using natural gas for the city of Kénitra. The total
value of these two projects is estimated at USD 1.2 billion. Six U.S.-
led groups and fifty other foreign companies have submitted preliminary
bids to build and operate the plants.
4. Dams
Dams in Morocco are used for hydro-electric power and irrigation of
agricultural lands. Morocco plans to construct one dam per year over
the next several years. Dam projects to be realized and for which
studies have already been completed are:
- Dchar El Oued dam to irrigate 35,000 hectares and produce 220
million of kwh per years.
- Sidi Mohammed Ben Abdallah dam improvement to increase storage
capacity to 1,300 cubic meters.
- Hydroelectric power and hydro-agricultural complexes of Haut Sebou
river, including three dams and two galleries.
- Two compensating dams for Al Massira dam.
- Jbel Lakhal dam to irrigate 4,800 hectares.
There are thirteen other large dam construction projects under study.
III. POLITICAL ENVIRONMENT
Morocco's bilateral ties with the United States date back to 1787 when
the Sultan of Morocco and the fledgling American republic signed a
treaty of peace and friendship and established diplomatic relations
(placing Morocco among the first nations to recognize the independence
of the United States.) Since the end of French protectorate in 1956,
Rabat and Washington have enjoyed close ties. Morocco's early
statesmanlike activism in the search of peace in the Middle East, and in
other peacekeeping activities have made the Kingdom a valuable ally on
the international stage. King Hassan II, who ascended the throne in
March 1961, has enjoyed a warm relationship with a succession of
American Presidents, including President Clinton whom he visited in
Washington in March 1995.
Among the major political issues that could affect the business climate
figures the yet unresolved Western Sahara dispute. An armed national
liberation force, the Polisario, based in Algeria, clashed with Moroccan
troops in the region prior to a UN-brokered ceasefire in 1989. While a
UN peacekeeping presence remains in the region, hopes for a permanent
settlement are pinned on a United Nations Security Council sponsored
referendum planned for 1996. Civil unrest and religious violence, which
continue to plague Morocco's eastern neighbor Algeria, have not spread
to Morocco. Islamic extremism has not gained widespread support in
Morocco, although recent economic strains caused by drought may lead to
some growth in the Islamic movement. Cannabis production in northern
Morocco is a major source of regional income and is a concern to
Morocco's European neighbors, but has not destabilized the region.
Morocco is a monarchy under the strong leadership of King Hassan. Its
Parliament has 333 members, two-thirds of whom are elected directly.
The remainder are elected by professional and trade organizations, labor
councils, communal councils and chambers of commerce. The King selects
a Prime Minister, who then, in principle, chooses the remaining cabinet
members. Morocco's Prime Minister is currently not affiliated with any
party, neither is the powerful Minister of Interior. Most of the
ministers, however, are members of a loyalist coalition of center-right
political parties.
Morocco is divided into provinces and prefectures, all of which are
governed by non-elected officials from the Ministry of Interior. Cities
and rural communes elect communal councils headed by presidents chosen
by the council members. Several of Morocco's larger municipal councils
elect a President of the Urban Commune, a sort of mayor. These urban
communes were recently granted greater budget authority by the Moroccan
Parliament. Most local authority, however, remains in the hands of the
non-elected officials of the Ministry of Interior.
IV. MARKETING U.S. PRODUCTS AND SERVICES
Distribution and Sales Channels
Foreign goods are imported mainly through Casablanca by companies that
distribute either directly to the public or to other wholesalers,
distributors, or retailers. Mark-ups can be substantial, although
current price controls tend to keep them lower for many market staples.
Goods may also be imported through commission agents for delivery to
wholesale and retail warehouses or to end-users. The agent's commission
usually represents 3-5 percent of the cost, but it can be higher.
Ordinarily, locally manufactured products are distributed by the
manufacturer directly to wholesalers, distributors and retailers. This
system, driven by strong price competition, eliminates certain middlemen
and helps to maintain competitive pricing. Manufacturers' mark-ups
range between 20 and 30 percent depending on the product; those of
distributors from 10-25 percent.
Most of the wholesale and retail commercial enterprises in Morocco are
family-run businesses which perform a variety of commercial roles.
Use of Agents/Distributors; Finding a Partner
All foreign manufacturers and exporters are represented in the market
either through their own affiliate branch office or through authorized
agent/distributors who import, install and service the equipment. These
distributors customarily provide total technical support to end users.
Certain locally registered agent/distributors with long-term
relationships with foreign manufacturers have contractual arrangements
with their principals under which the local importers provide in-bond
warehousing. New-to-market U.S. exporters are urged to consider similar
agreements.
Franchising
In addition to McDonalds and four Pizza Huts, which have had successful
openings in Morocco, Dairy Queen has also now opened a restaurant in
Rabat. A Moroccan franchisee recently signed a contract with Subway
Sandwiches and intends to sign one with the fast food chain Brennans.
There appears to be an ample market for additional fast food chains.
Activities offering additional franchising opportunities in Morocco
include hotels and motels, automotive parts and services, dry cleaning
business equipment and services. A USAID program continues to be
successful in helping arrange master franchise agreements between U.S.
franchisers and local franchisees.
Direct Marketing
This selling method is allowed in Morocco. Avon and several other French
companies employ Moroccans primarily for direct sales of cosmetics and
household goods.
Joint Ventures/Licensing
Moroccans are increasingly interested in joint venture business. There
are an estimated 1,500 joint ventures in manufacturing with French,
Spanish and German partners. Licensing is a widely practiced form of
doing business in Morocco. Over 250 U.S. pharmaceuticals are produced
under license in Morocco, in addition to popular U.S. beverages and some
snack foods. EU firms dominate the licensing market with vehicle
assembly, clothing, pharmaceuticals and cosmetics.
Steps to Establishing an Office
The Commercial Code freely permits the establishment, extension or
merger of firms. The only formalities required to form a company consist
of entering the statutes with the Secretariat of the Court of First
Instance and in the Commercial Register kept by the Court. As in the
United States, a person may create or purchase a business without
incorporating. The owner of such proprietorship has responsibility
for all operations, transactions, and debts.
Selling Factors/Techniques
Most local distributors of imported merchandise expect their suppliers
to provide substantial advertising and promotional support, particularly
when introducing a new product or brand name. Sales promotion material
and technical documentation should be in French. Clear and simple
French-language operating instructions, displays of the product in use,
sample handouts and frequent personal visits are vital for successful
sales in Morocco.
Advertising and Trade Promotion
While a number of advertising agencies operate in Morocco, most do not
provide the number of services an American seller would come to expect.
Media advertising is well developed. Newspaper and magazine advertising
is most commonly used and French language papers have the largest
readership.
Leading daily papers published in Casablanca in French include "Le
Matin", "l'Opinion" and "Al Bayane". "La Vie Economique" and
"l'Economiste" are widely-read business economic weeklies. In addition,
specialized trade and industry journals are published by several local
industry groups. Commercial time is available on the government-owned
and the lone private channel television service in 10 to 60 second
"spots" usually repeated 2 or 3 times daily. The most common
advertisement is the 30 second spot. Advertising is prohibited on the
government-owned radio. However, commercial time is available on
Tangier-based French broadcasts which reach the entire Maghreb. Radio
advertising has proven very effective and next to newspapers is the
medium of choice for most consumer goods. Direct mail is also becoming
more common and a new firm now offers aerial-banner advertising. Street
posters offer an important advertising medium for consumer goods in
Morocco. Fast moving consumer product companies sometimes use sound
trucks to advertise, particularly in remote areas.
Pricing product
Price controls apply only to goods considered basic essential
commodities, e.g., sugar, bread, milk, flour, oil and gasoline. In most
other cases, prices are freely determined and the government may only
intervene under special circumstances.
Sales Service/Customer Support
U.S. firms are urged to provide the following services to their local
agent/distributors:
Readily available back-up service provided by manufacturer-trained local
technicians and engineers and user oriented products suited for local
conditions.
Partnership agreements with local firms who provide expertise on local
trading conditions and warehouse equipment and spares.
Product information in French is vital in Morocco. The end users'
support staff is often ill-trained and prone to mishandle equipment if
they don't receive detailed instructions and are not provided with
comprehensive manuals.
Major competitors often have agreements with local
importers/distributors to share costs for local and factory technical
training programs.
Selling to the Government
Sales to the Government are made through direct negotiations or foreign
government tenders. The most common way is through tenders. The public
sector has three categories of projects: Minor, Medium and Major. Medium
and Major projects are open to international firms. Major projects are
usually guaranteed by an international financial entity. There are many
major projects for which studies have been made but cannot be
implemented for lack of financing.
There is no central purchasing bureau and no tendering authority.
Ministries and state owned enterprises issue their own tenders and
deadlines vary from 30 to 90 days depending on the complexity of the
project. Government tenders are published in local newspapers and copies
are sent to embassies for advertizing. Copies of those tenders are sent
by cable to the U.S. Department of Commerce. Tenders are printed each
day in the Commerce Business Daily.
All bidding documents are in French. They provide the technical
requirements and the administrative clauses common to all government
projects. A bidder's administrative package should include two copies
of a statement of honor indicating the name, address, activity, current
account number and bank guarantee. The technical package should include
technical and human resources of the company and its references. The
proposal must be in French and use the metric system.
Protecting your Product from IPR Infringement
The legal system generally protects and facilitates acquisition and
disposition of property rights, including intellectual property rights.
Morocco has a relatively complete regulatory and legislative system for
the protection of intellectual property. It is a member of the World
Intellectual Property Organization (WIPO) and is a party to the Berne
copyright, Paris industrial property, and universal copyright
conventions, the Brussels Satellite Convention, and the Madrid, Nice,
and Hague agreements for the protection of intellectual property.
Computer software is not explicitly covered by Morocco's copyright law.
A quirk dating from the era of French and Spanish protectorates requires
patent and trademark applications to be filed in both Casablanca and
Tangier for complete protection.
While Moroccan laws are generally adequate, enforcement is lacking.
Counterfeiting of clothing, luggage, and other consumer goods is not
uncommon. Counterfeiting is primarily for local consumption rather than
for export.
Need for a Local Attorney
New-to-market U.S. firms are strongly advised to obtain the services of
one of the five major English speaking and U.S. business oriented law
firms in Casablanca and Rabat. A complete list of recognized Moroccan
law firms is available through the U.S. Commercial Service at the U.S.
Embassy in Rabat or the Consulate General in Casablanca.
V. LEADING TRADE PROSPECTS FOR U.S. BUSINESS
Best Prospects Products and Services for U.S. Exporters
1. WRE WATER RESOURCES EQUIPMENT
2. ELP ELECTRICAL POWER SYSTEMS
3. POL POLLUTION CONTROL EQUIPMENT
4. TEL/TES TELECOMMUNICATIONS EQUIPMENT
5. MED MEDICAL EQUIPMENT
6 CPT/CSF COMPUTERS/PERIPHERALS & COMPUTER SOFTWARE
7. ACE ARCHITEC/CONSTR/ENGINEERING SERV.
8. MIN MINING INDUSTRY EQUIPMENT
9. FRA FRANCHISING
(all figures in USD millions unless otherwise stated)
1 - Water Resources Eq./Serv (WRE)
The market for water distribution equipment in Morocco will reach around
USD 1.5 billion in the next 20 years. Much needed investment in the
distribution sector will stimulate this market to recover the idle
production capacity and reduced output it is experiencing after another
year of drought. The lower import duties imposed on water resources
equipment will also cause imports to rise from USD 320 million in 1995
to around USD 370 million in 1996.
The largest foreign suppliers are France with 21%, Germany with 18% and
Italy with 17%. The above number may change rapidly as Germany's market
share is increasing rapidly due to readily available financing and
aggressive marketing.
1994 1995(e) 1996(e)
A. Total Market Size 300 320 370
B. Total Local Production 25 35 42
C. Total Exports 0 0 0
D. Total Imports 275 285 328
E. Imports from the U.S. 70 78 100
The above statistics are unofficial estimates.
2 - Electrical Power Systems (ELP)
Investment in electric power generation and distribution facilities has
been significant over the last two decades; however, with the recent
surge of industrial growth, much more investment is needed. In general,
U.S. private investment in Morocco is very small in comparison with EU,
particularly French, investment. In the past several years, the U.S.
share of total imports has fluctuated between 0.5 and 12.5% depending on
changes in demand for U.S. origin products. Morocco's demand for
electricity is growing fast. The National Office of Electricity is
committed to satisfy this demand from both urban and rural areas. A
1200 MW power plant is scheduled to be build in Jorf Lasfer and two
other projects are scheduled for bid resumption later this year: a
300/600 MW steam thermal power station and a 300/500 MW combined-cycle
power station.
1994 1995(E) 1996(E)
A. Total Market Size 200 210 240
B. Total Local Production 0 0 0
C. Total Exports 0 0 0
D. Total Imports 200 210 240
E. Imports from the U.S. 30 32 38
The above statistics are unofficial estimates.
3 - Pollution Control Eq.(POL)
The current environmental market in Morocco is estimated at USD 150
million annually. Due to increased environmental awareness, future
national market assessments predicts a cumulative USD 5.2 billion, most
of which will be spent on municipal wastewater collection and treatment
by the year 2011. American companies interested in entering this market
must strategize carefully. French and other European firms have
significant advantages. They have developed local marketing
organizations, and their governments provide soft loans. However U.S.
firms can still find many attractive opportunities for several reasons.
First, the market is growing rapidly, creating opportunity for firms
with improved technologies. This will be particularly important in
sectors such as pollution prevention, where U.S. firms have leading edge
technologies. The following subsectors seem to be the most promising
for U.S. suppliers: Municipal Water and Wastewater; Waste recycling;
Industrial wastewater; Air pollution; Water purification; Municipal
solid waste; Mobile source air pollution; Air and water monitoring and
testing and environmental consulting.
1994 1995(e) 1996(e)
A. Total Market Size 150 170 204
B. Total Local Production 0 0 0
C. Total Exports 0 0 0
D. Total Imports 150 170 204
E. Imports from the U.S. 30 35 42
The above statistics are unofficial estimates.
4 - Telecommunications Eq./SERV. (TEL/TES)
The Moroccan market for telecommunications is growing rapidly. It is
one of the most dynamic in North Africa. Telecommunications
infrastructure is an essential link for all sectors and the development
of the national economy and the opening of the market to foreign
investments cannot be achieved without it. Recognizing this, the
Government is making considerable efforts to develop a modern
telecommunication network based on the most advanced technologies. The
Government is taking steps to privatize and expand the growing mobile
phone market. The best sales prospects for U.S. manufacturers are in
the high-tech areas where the U.S. continues to maintain a competitive
edge over other countries. U.S. firms have a good reputation and are
considered the pioneers in new telecommunications technology.
1994 1995(e) 1996(e)
A. Total Market Size 180 220 253
B. Total Local Production 0 0 0
C. Total Exports 0 0 0
D. Total Imports 180 220 253
E. Imports from the U.S. m 35 42 49
The Above statistics are unofficial estimates
5 - Medical Equipment (MED)
The Government of Morocco is currently making considerable efforts to
reestablish sustainable public health programs nationwide and to improve
overall health care for the Moroccan people. It plans to modernize
equipment, to raise in-patient capacity of hospitals and improve
efficiency in hospital operations. The World Bank and other
multilateral financing institutions grant substantial loans to Morocco
in the health sector. U.S. equipment is considered by Moroccan medical
officials as efficient and modern. U.S. technical and managerial
expertise in the health field is highly regarded. With this reputation,
U.S. exporters could benefit tremendously from reforms in the health
sector. All types of electro-medical apparatus are needed since there
is no local production. The most promising sectors are: X-ray machines
and parts; electrocardiographs; medical electricity apparatus;
diagnostic equipment, dental electro-medical equipment and
cat/mri/radiology equipment and disposable medical supplies.
1994 1995(e) 1996(e)
A. Total Market Size 65 75 90
B. Total Local Production 2 3 3
C. Total Exports 0 0 0
D. Total Imports 63 72 87
E. Imports from the U.S. 15 25 38
The above statistics are unofficial estimates.
6 - Computers/Peripherals & Computer Software (CPT/CSF)
Current Moroccan market for computers and software is estimated at USD
65.0 million in 1994. The market is expanding rapidly and we expect it
to continue to grow by 30% over the next three years. Imports supply
100% of total market where the U.S. leads with 55% of market share. The
Moroccan market for computers is open to U.S. products and technology.
The growth in financial services and the stock exchange should also spur
this sector. The Government believes that advanced technology is
Morocco's way of catching up to the developed world. Computerizing an
economy, given the pace of technological change, requires continual
updating of materials. U.S. suppliers have opportunities to export
computers and related equipment in this market where U.S. equipment is
generally respected for its technical sophistication and high quality.
1994 1995(e) 1996(e)
A. Total Market Size 70 82 98
B. Total Local Production 0 0 0
C. Total Exports 0 0 0
D. Total Imports 70 82 98
E. Imports from the U.S. 39 45 54
The above statistics are unofficial estimates.
7 - Architec/Const/Engin Serv. (ACE)
Imported engineering services supply 90 percent of the entire Moroccan
market. We see a 20% annual growth in the demand for engineering
expertise in Morocco for major infrastructure projects. These projects,
funded by the World Bank and other multilateral financing institutions,
are essential for the Moroccan economy. Lack of local expertise in this
field, create more opportunities for U.S. engineering firms to provide
their service in this growing market. U.S. engineering companies are
known for the high quality of their services and their expertise in
conducting studies in various sectors. There is a great opportunity for
U.S. engineering firms to export technology in this market especially in
the fields of energy, mining, port development, water resources and
construction.
1994 1995(e) 1996(e)
A. Total Sales 182 225 270
B. Total Sales by Local Firms 15 20 30
C. Tot.Export Sales by Local Firms 0 0 0
D. Tot.Sales by Foreign owned Firms 167 205 240
E. Imports Sales by U.S.owned Firms 30 40 60
The above statistics are unofficial estimates.
8 - Mining Industry Equipment (MIN)
Globally, the mining and paramining industries make up more than 8% of
the national GNP. They provide employment for more than 3% of the active
population and 16% of the national industry. Mining is one of Morocco's
most important industries. By far, the most relevant mineral is
phosphate. The country depends heavily on it as the country's main
source of income. This will not change in the foreseeable future
especially if one looks at the upcoming investment projects, heavily
inclined to pursue the exploitation of this mineral.Morocco is also
developing local production of phosphoric acid, chemical fertilizer,
copper, fluorite, lead, iron and anthracite. Most of the large equipment
supplied to Morocco carries U.S. brand names, whether originating from
the U.S. or from European subsidiaries of U.S. multinationals.
1994 1995(E)
1996(E)
A. Total Market Size 200 225 248
B. Total Local Production 0 0 0
C. Total Exports 0 0 0
D. Total Imports 200 225 248
E. Imports from the U.S. 30 40 48
The above statistics are unofficial estimates.
9 - Franchising
Licensing agreements are now practicable and royalty payments can be
routinely transferred out of Morocco. With minimum financial risk, U.S.
products and services have become available in Morocco via franchising
systems. Historically U.S. franchising in Morocco has been limited to
beverage bottlers and car rental agencies. Two European retail trade
marks have also been franchised in Morocco. More recently, McDdonalds
and Pizza Hut have mounted successful efforts. The latter company has
wisely allied its expansion efforts to the development of shopping malls
in Rabat and Casablanca. McDonalds has one point of sale in Rabat and
one in Casablanca. A second one will soon open its doors in Casablanca.
Pizza Hut's development schedule has been more ambitious than McDonalds
with 3 points of sale in Casablanca, one in Rabat, one in Agadir and one
in Marrakech. Dairy Queen opened its first store in Rabat. A Moroccan
franchisee recently signed a contract with Subway Sandwiches and intends
to sign one with the Fast Food Chain Brennans. It is worth mentioning
that McDonalds has nearly redeemed its initial investment two years
after its opening.
The Moroccan fast food franchising is a relatively new and small
subsector of the franchising market in Morocco. It has evolved very
rapidly since 1990 and growth is expected to be spectacular in the
coming years. Because of their experience and know how , American
franchises enjoy a position of considerable prominence. There appears
to be an ample market for additional fast food chains.
Activities offering additional franchising opportunities in Morocco
include hotels and motels, automotive parts and services, dry cleaning,
printing and business equipment and services.
(Because franchising is a relatively new concept, there are no clear
official figures available per normal format).
Best Prospects for Agricultural Products
In addition to the normal imports of vegetable oil, sugar, tobacco and
cotton, Morocco is expected to import record quantities of wheat and
barley this year as a result of a devastating drought. Imports of
feedstuffs are expected to reach a high level particularly for those
that have been temporarily exonerated from duties and taxes such as
bran, sugar beet pulp, alfalfa pellets. Imports of oilseeds are expected
to remain high to permit a full use of the existing crushing capacity
and to fulfill the high demand for protein meals. Pulses (beans,
lentils, chick peas), imports are expect to increase significantly to
offset the low local production. The best prospects are:
- Bread Wheat & Durum Wheat
- Feed grains (corn, barley)
- Vegetable oil
- Oilseeds
- Cotton
- Pulses (white beans, lentils, chick peas)
- Feedstuffs (bran, alfalfa pellets, sugar beet pulp)
PRODUCTION, SUPPLY & DISTRIBUTION
TABLES
Commodity: TOTAL WHEAT
(1,000 Metric Tons)
=========================
1994 1995 1996f
=========================
Total Market Size 4607 5100 5356
Total Local Production 1573 5523 1100
Total Exports 0 0 0
Total Imports 2442 1090 3000
Total Imports from U.S. 1410 360 800
=========================
Commodity: BARLEY
(1,000 Metric Tons)
=========================
1994 1995 1996f
=========================
TOTAL Market Size 1900 3100 2200
Total Local Production 1019 3720 600
Total Exports 0 0 0
Total Imports 252 300 700
Total Imports from the U.S. 0 0 0
=========================
Commodity : VEGETABLE OIL
(1,000 Metric Tons)
===========================
1994 1995 1996f
===========================
Total Market Size 243 245 244
Total Local Production 19 22 22
Total Exports 0 0 0
Total Imports 229 220 220
Total Imports from the U.S. 37 40 40
===========================
Commodity : CORN FEED
(1,000 Metric Tons)
===========================
1994 1995 1996 f
===========================
Total Market Size 500 550 550
Total Local Production 200 90 200
Total Exports 0 0 0
Total Imports 320 410 350
Total Imports from the U.S. 192 380 380
===========================
Commodity : COTTON FIBER
(1,000 Metric Tons)
===========================
1994 1995 1996
===========================
Total Market Size 46 45 46
Total Local Production 0 1 0
Total Exports 2 0 0
Total Imports 46 42 43
Imports from the U.S. 1 2 5
===========================
Significant Investment Opportunities
Morocco's demand for electricity grows annually by 7 percent. The
"Office National de l'Electricité" (ONE) is committed to satisfying this
demand from both urban and rural areas through private sector
development and management. There are two such opportunities scheduled
for bid resumption later this year.
A. A 300/600 MW steam thermal power station using fuel and gas for the
city of Mohammedia, twenty miles North East of Casablanca.
B. A 300/500 MW combined cycle power station using natural gas (by
pipeline from Algeria) in the city of Kenitra, thirty miles North East
of Rabat.
The estimated value of both projects is USD 1.3 billion.
C. Government of Morocco privatization officials have publicly obligated
the selling off of the Samir Oil refinery to the foreign or domestic
private sector. The refinery, located near the Mohammedia port,
currently processes about 6,5 million tons of fuel per year and about
300,000 tons of oil derivatives. Officials are carrying out an
evaluation of market worth and its long term prospects. A formal call
for bids is not expected until November-December, 1995.
The Government of the United States acknowledges the contribution that
outward foreign direct investment is increasingly viewed as a complement
or even a necessary component of trade. For example, roughly 60 percent
of U.S. exports are sold by American firms that have operations abroad.
Recognizing the benefits that U.S. outward investment brings to the U.S.
economy, the government of the United States undertakes initiatives,
such as Overseas Private Investment Corporation (OPIC) programs,
investment treaty negotiations and business facilitation programs, that
support U.S. investors.
VI. TRADE REGULATIONS AND STANDARDS
Trade Barriers
Competition from extensive contraband imports, especially from the
Spanish enclaves of Ceuta and Melilla, represent significant competition
to imports from the U.S. and to goods produced in Morocco by U.S. firms.
Tariffs and Import taxes
Customs formalities have been relaxed so that most products can now be
imported. Most imports are subject to customs duties which range between
0 to a maximum of 35 percent of the value of the items imported. In
addition, a surcharge of 10 and 15 percent is also payable. Value-added
tax (TVA), is also payable on goods imported into Morocco. The rates for
these goods range between 7 and 19 percent. TVA is also paid on locally
produced goods.
Custom duties for food and agricultural products normally range between
0 and 35 percent. An exception to this range is meat and selected dairy
products, whose tariffs were recently increased significantly to replace
licensing requirements.
Trade Liberalization for Key Agricultural Commodities
While oil and petroleum products were liberalized on January 1, 1995,
implementation of the liberalization of key agricultural commodities
(grains, sugar and oilseeds and derivatives) has been postponed but
could be adopted soon. Necessary measures to link the heavily taxed
imports to the local subsidy mechanism need to be implemented to make
imports possible. The sensitivity of these staple commodities,
particularly wheat, sugar and vegetable oil, obliges the government to
ensure that there are no shortages in the local market and that prices
are accessible to the average consumer. The current drought in Morocco
may discourage the government from fully implementing the liberalization
of the staple commodities.
Customs Valuation
The customs authorities will not give a binding ruling on customs
classification in advance. An informal advisory opinion may be obtained
from the Directeur des Douanes, Blvd. Rachidi, Casablanca.
Import Licenses
As a member of GATT since 1987, Morocco continues to liberalize its
import policies. In 1991, a new Foreign Trade Act was passed reversing a
legal presumption of import protection. Currently, less than 9 percent
of product categories still require import licenses. There is no
specific protection policy for local industries against foreign
competition. Morocco continues to liberalize trade by gradually
removing the requirements for import licensing and reducing import
duties. The granting of an import license is a lengthy process,
requiring approval from each concerned sector. Such licenses are
routinely granted.
Export Controls
There are no specific controls. Goods which are intended to be further
worked abroad can be exported temporarily from the customs area. On
their return, only the value added abroad is subject to import duties
and taxation.
Import/Export Documentation
A commercial invoice is required. No special invoice form is necessary,
nor is a consular visa or consular certification required. The
commercial invoice should fully describe the goods in French.
Certification as to country of origin is required. Payments are made
through bank-to-bank transfers. Pro forma invoices must be provided in
most cases. The invoice, which should be on company letterhead, is
required for both import licenses and foreign exchange transfers. "To
order" bills are acceptable as a bill of lading.
Temporary Entry
Goods imported under this provision must be approved by decree of the
Finance Ministry. Customs may authorize entry of other goods on an
individual basis. The limit for temporary entry is 6 months, renewable
for up to a year.
Labeling, Marking Requirements
No special regulations apply to the outside marking of containers for
shipments to Morocco. However, an indication on outer containers of the
net weight in kilograms, together with other identification markings,
will assist in locating goods on arrival and speed their clearance
through customs. Labels can be in French or Arabic and must show country
of origin. There is however a requirement for locally sold products to
print the date when the product was made and the date of its expiration.
Prohibited Imports
Import restrictions apply only to firearms, used clothing and used
tires.
Standards
The Government does not require locally registered firms to apply ISO
9000 usage. Only a few multinational firms operating in Morocco
currently use the ISO, primarily as a marketing tool.
Free Trade Zones/Warehouses
Foreign investors and businesses are operating in the Free Zones
established in Tangier. Companies located in Free Zones have the right
of 100 percent duty-free imports and exemption from all taxes for export
production.
Warehouse storage allows storage of goods in public or private
warehouses controlled by the Customs and Excise Administration.
Special Import Provisions
As a member of the GATT, Morocco has eliminated most of the restrictions
on imports originating from other member countries. Moroccan Imports are
regulated through a general program of imports (PGI - Programme Général
d'Importations), which contains two different lists:
- LIST A - For free products: i.e. products that can be imported freely
without limitation and with no discrimination of origin.
- LIST B - For authorized products: An import license is required and is
delivered to the importer by the Moroccan Ministry of Foreign Commerce
depending on the country's needs, import quotas and the country's
reserves of foreign exchange. The goal is to transfer products from list
B to list A until total liberalization of Moroccan foreign trade is
achieved.
Membership in Free Trade Arrangements
In an effort to broaden the geographic scope of its exports, Morocco has
signed free trade arrangements with members of the Maghreb Arab Union.
Import tax (PFI) and TVA are applied. A similar trade arrangement has
been established with Saudi Arabia.
The Morocco-EU Accord of 1976 gives preferential treatment to Moroccan
goods exported to the EU. Moroccan industrial products are thus
exported to the EU duty-free and without quantitative restrictions.
Several agricultural or agri-business products are subject to quotas or
seasonal restrictions.
VII. INVESTMENT CLIMATE
Openness to Foreign Investment
The Moroccan government actively encourages foreign investment and has
made a number of regulatory changes designed to improve the investment
climate in recent years. It welcomes foreign participation in its
privatization program. These measures have contributed to sharp
increases in foreign investment in recent years, although foreign
investment declined somewhat in 1994.
Morocco does not have a foreign investment law per se, but rather
several sectoral codes covering industry, tourism, export industries,
real estate, maritime, mining and crafts. The crafts code applies only
to 100 percent Moroccan-owned firms and the maritime code applies only
to firms that are at least 50 percent Moroccan-owned (100 percent for
coastal fishing). The other codes apply equally to foreign and Moroccan
investors, except for their foreign exchange provisions which favor
foreign investors.
The sectoral codes provide various investment incentives, including
partial or total exemption from corporate income taxes, TVA, and import
duties. Some sectoral codes also provide for government financing,
although such financing is rarely available in practice. The level of
incentives in some sectors depends on the location of the investment.
Additional incentives accrue to investments in the Tangier free trade
zone and the Western Sahara.
Investment screening procedures apply only when an investor requests
benefits under a sectoral code. These benefits are granted once the
Ministry responsible for the sector has approved the proposal.
Investments valued at over dh 50 million (about USD 6 million) are also
reviewed by the Ministry of Economic Affairs. In the case of
particularly large investments, incentives in addition to those
specified by the applicable sectoral code may be, and often are
negotiated with the government.
The Moroccan government is drafting a new investment code to replace the
sectoral codes. The new code will reportedly provide fewer benefits,
but make the benefits it does provide more automatic.
The Moroccan government has repealed most aspects of the 1973
Moroccanization law limiting foreign ownership in a number of sectors.
Foreign investment is now permitted in all sectors except agricultural
land and a few sectors reserved for the state (e.g., phosphate mining,
air and rail transport, public utilities). The Moroccan government
plans to allow private companies to build and operate electrical
generation facilities that would sell electricity to the state electric
utility.
Conversion and Transfer Policies
The Moroccan dirham is convertible for all current transactions and for
some capital transactions, notably capital repatriation by foreign
investors if the original investment is registered with the foreign
exchange office. Foreign exchange is available through the commercial
banks on presentation of documents for the repatriation of dividends and
capital by foreign investors, for remittances by foreign residents, and
for payments for foreign technical assistance, royalties and licenses.
No prior government approval is required.
The Central Bank sets the exchange rate for the dirham against a basket
of currencies of its principal trading partners. The rate against the
basket has been steady since a nine percent devaluation in May 1990,
with changes in the rates of individual currencies reflecting changes in
cross rates. The U.S. Embassy purchases approximately USD 20 million
worth of dirhams annually at the Central Bank rate.
Expropriation and Compensation
There have not been any significant expropriations in Morocco since the
early 1970s. The Embassy is not aware of any recent instances of
private property being expropriated for other than public purposes, or
being expropriated in a manner that is discriminatory or not in
accordance with established principles of international law.
Dispute Settlement
There have been a number of disputes involving U.S. firms in recent
years. There is no particular pattern to the disputes, which involve
disparate issues and various government agencies.
Minor disputes are generally resolved with the relevant government
agency. Disputes can be taken to the courts, although this rarely
occurs due to inadequacies in the Moroccan judicial system. Morocco is
a member of the International Center for the Settlement of Investment
Disputes (ICSID) and a party to the 1958 convention on the recognition
and enforcement of foreign arbitral awards (with reservations) and the
1965 convention on the settlement of investment disputes between states
and nationals of other states.
Political Violence
The last instance of mass political violence was the riots in Fez in
December 1990, when a number of installations were destroyed. The murder
of two foreign tourists in a hotel in Marrakech in 1994 may have been
politically motivated. While similar incidents cannot be ruled out,
there is no evidence that he country is becoming more prone to such
violence. Morocco has been generally insulated from the unfavorable
political developments affecting other countries in the region.
Performance Requirements/Incentives
There are no foreign investor performance requirements although, as
noted above, investors may receive incentives from the government to
pursue policies deemed desirable. Companies that export or locate in
less developed regions of the country may receive tax breaks and customs
exemptions. There are no requirements or incentives regarding local
value added, local equity, substitution of imports or employment of
Moroccan workers, although the government may take these factors into
account in deciding whether to approve investments under the various
sectoral codes.
Right to Private Ownership and Establishment
Private ownership is permitted in all but a few sectors that are
specifically reserved for the state, notably public utilities, rail and
air transport, and phosphate mining. Apart from these few exceptions,
private entities may freely establish, acquire, and dispose of interests
in business enterprises.
Morocco's program to sell its shares in 114 companies provides for
privatization to take place through direct negotiations, requests for
bids, the stock market, or some combination thereof. While the
government generally welcomes foreign participation in the privatization
program, it has limited foreign participation in some instances. There
is general support among non-governmental groups for the privatization
program.
Protection of Property Rights
The legal system generally protects and facilitates acquisition and
disposition of property rights, including intellectual property rights.
Morocco has a relatively complete regulatory and legislative system for
the protection of intellectual property. It is a member of the World
Intellectual Property Organization (WIPO) and is a party to the Berne
copyright, Paris industrial property, and universal copyright
conventions; the Brussels Satellite Convention; and the Madrid, Nice,
and Hague agreements for the protection of intellectual property.
Computer software is not explicitly covered by Morocco's copyright law.
A quirk dating back to the era of French and Spanish protectorates
requires patent and trademark applications to be filed in both
Casablanca and Tangier for complete protection.
While Moroccan laws are generally adequate, enforcement is sometimes
lacking. Counterfeiting of clothing, luggage, and other consumer goods,
as well as the illegal copying of computer software, is common.
Regulatory System: Laws and Procedures
Morocco's economic reform program has included improvements in the
regulatory environment. In particular, the liberalization of the
foreign exchange allocation system, the import regime, and the financial
sector have reduced the government's role in the economy. Deficiencies
remain in other areas, however, such as the labor law which limits
firms' ability to hire and fire workers.
In areas where the regulations are favorable on paper, there are often
problems in practice. Government procedures are not always transparent,
efficient or quick. Routine permits, especially those required by local
governments, can be difficult to obtain. The Moroccan legal system is
often inadequate for resolving disputes, particularly those involving
foreign investors.
Efficient Capital Markets and Portfolio Investment
The Moroccan banking system changed significantly over the last decade.
The government replaced quantitative controls (credit ceilings by bank
and sector) with indirect controls, mainly reserve requirements.
Interest rates on deposits were deregulated. Mandatory bank holdings of
particular types of assets were reduced. While these reforms have
introduced increased competition in the banking sector, more needs to be
done, including liberalizing loan rates (they are now linked to deposit
rates), taking actions to improve the secondary market for treasury
bills and allowing a market for commercial paper.
Moroccan banks are generally sound. Morocco began phasing in Basle
standards in 1992. The larger banks are generally in compliance with
the standards, but some smaller banks may not be. Banks are supervised
on a consolidated basis and must provide statements audited by certified
public accountants.
The Casablanca stock exchange, which had been essentially moribund for
years, has enjoyed a recent revival thanks to new laws designed to make
the exchange more efficient and transparent.
Bilateral Investment Agreements
A bilateral investment treaty between the United States and Morocco took
effect on May 29, 1991. The treaty stipulates that U.S. investors will
be accorded status no less favorable than any other nationality;
expropriation claims shall be handled promptly; and disputes may be
referred to international arbitration. Morocco has similar agreements
with Germany, France, Kuwait, Sweden, the United Kingdom, and
Switzerland.
A U.S.- Morocco Trade and Investment Framework Agreement (TIFA), was
signed in Washington in March, 1995. This agreement is intended to
further encourage and facilitate U.S. - Moroccan economic activity.
Negotiations under the TIFA are slated to begin this year.
OPIC And Other Investment Insurance Programs
Morocco has had an Overseas Private Investment Corporation (OPIC)
agreement since 1961, which was most recently updated in March, 1995.
Similar agreements are in effect with the agencies of France, Sweden,
the United Kingdom, and Switzerland. Morocco is also a member of the
Multilateral Investment Guarantee Agency (MIGA) and the Kuwait-based
Arab Investment Guarantee Organization.
Labor
Unskilled labor is generally plentiful and inexpensive. Employers are
free to negotiate wages and salaries, subject to the minimum wage law.
The current industrial minimum wage is dh 7.26 (about 85 cents) an hour.
There are, however, shortages of certain skilled workers.
The Moroccan constitution gives workers the right to organize, bargain
collectively and strike, although the conditions under which workers can
strike has yet to be defined. There is an active trade union movement,
and strikes are not uncommon.
Foreign Trade Zones/Free Ports
There is a free trade zone in Tangier in northwestern Morocco. The zone
is open to both Moroccan and foreign companies. The 65 companies
located in the zone may import goods duty free and are exempt from other
taxes. The only requirement is that all local workers be paid directly
in foreign exchange, which they are then obliged to exchange for dirhams
at Moroccan commercial banks operating in the zone. Moroccan labor laws
apply to the zone, but few, if any, firms are unionized. There is also
an offshore banking law covering Tangier. Three banks have been
established under the offshore banking law.
Capital Outflow Policy
In general, Moroccans cannot obtain foreign exchange for investments
abroad and the government does not offer incentives to invest in other
developing countries. Recently, however, several large Moroccan
companies have invested abroad. In particular, the holding company ONA
has invested in Europe. According to Moroccan balance of payments
statistics, Moroccan investment abroad has averaged around USD 20 - 30
million over the last few years.
Major Foreign Investors
U.S.
Goodyear Maroc
parent company: Goodyear
sector: tire production
number of employees: 600
Industries Marocaines Modernes
parent company: Procter and Gamble
sector: soaps and toiletries
number of employees: 500
Coca-Cola Export Corporation
parent company: The Coca-Cola Export Corporation
number of employees: 45
Other
S.G.S. Thomson
parent company: S.G.S. Thomson (France)
sector: electronic components and semiconductor
manufacturing
number of employees: 1,600
Pechiney - MMA
parent company: Pechiney (France)
sector: aluminum cookware manufacturing
number of employees: 1,280
Bymaro S.A.
parent company: Bouygues S.A. (France)
sector: civil engineering
number of employees: 1,000
Renault Maroc
parent company: Renault S.A. (France)
sector: motor vehicle assembly
number of employees: 800
C.G.E. Maroc
parent company: C.G.E. (France)
sector: electric cable and transformer manufacturing
number of employees: 675
Polymedic
parent company: Hoechst AG (Germany)
sector pharmaceutical manufacturing
number of employees: 350
VIII. TRADE AND PROJECT FINANCING
Banking System
Morocco has a well-developed banking system, originally modeled after
the French system, and currently working its way through modernization
similar to those that took place in France over the past decade. There
are 12 major banks in the country plus five government owned specialized
financial institutions, about 15 credit agencies and about 10 leasing
companies. Other elements of the financial infrastructure include
insurance companies, pension funds, and a stock market.
Until 1991, credit and money supply was controlled directly by the old
French-style encadrement system allocating sectoral lending among banks
based on historical patterns. Since financial liberalization, credit is
supposed to be allocated freely, with the central bank using indirect
methods to control the interest rate and volume of credit. The banking
system is still used by the government, however, as a way to channel
domestic savings to finance government debt, and the banks are required
to hold a part of their assets in bonds paying below market interest
rates. Following liberalization, credit continued to expand at a rate
that appeared to threaten price stability with interest rates rising to
record levels, and the central bank moved part way back to
administrative controls by raising the discount rate and by setting an
administrative ceiling on interest rates, calculated as a markup over
the banks'average cost of funds.
A new bank reform law, promulgated in 1993 clearly laid out the
parameters of banking activities, clarified oversight and control
responsibilities, specified legal penalties for violations of banking
regulations, and established a depositors guarantee fund.
One of the two largest government owned banks was privatized with the
other scheduled for privatization in 1995-96.
Foreign Exchange Controls Affecting Trading
Morocco maintains a system of foreign exchange controls, managed by a
government agency, the Office de Changes, but the rules on transfers
have been progressively liberalized to the point where the dirham is
freely convertible according to the IMF definition for current account
transactions. The value of the dirham is tied to a basket of hard
currencies weighted according to Morocco's foreign trade. Since this is
dominated by Europe, variations in the dollar/franc or dollar/deutchmark
rates are generally reflected in the dirham's dollar value.
Authority to buy and sell foreign exchange has been delegated to the
banking system, which will carry out transactions on presentation of
appropriate documentation justifying the transaction such as an invoice
to pay for imports. In practice, there are no reports of difficulties
in obtaining foreign exchange in this way. Capital transactions do
require authorization from the Office de Changes, which is granted
routinely for business-related transactions. Under its investment code,
the government offers a guarantee of repatriation of both invested
capital and profits, provided that the initial investment was declared
on the way into Morocco.
General Financing Availability
Local financing is available for Moroccan investors and importers, but
real interest rates are high by American standards, and Moroccan Banks
generally require a high degree of security (e.g. collateral and
personal signature) before committing themselves.
How to Finance Exports/Methods of Payment
Most Moroccan imports are paid for by irrevocable confirmed letters of
credit issued by major local banks with U.S. banking correspondence.
Within the country, end-users are normally given up to 90 day credit by
importers.
Types of Available Export Financing and Insurance
Exporters naturally want to get paid as quickly as possible, and
importers usually prefer delaying payment at least until they have
received and resold the goods. Because of the intense competition for
export markets, being able to offer good payment terms is often
necessary to make a sale. Exporters should be aware of the many
financing options open to them in Morocco.
Five U.S. Government agencies provide finance consulting services to
exporters through the Trade Promoting Coordinating Committee, a
Washington based group which includes the Commerce Department, Ex-Im
Bank, Small Business Administration, Overseas Private Investment
Corporation, and the Trade Development Agency.
The Commerce Department's new office of Multilateral Development Bank
Operations (MDBO) provides one-stop shopping services to U.S. firms
interested in doing business with the MDBs. Its staff can help U.S.
companies get a share of major contracts financed by the multilateral
development banks. For more information on any of these services in the
U.S., contact MDBO at
(202) 482-3399 or fax (202) 273-0927.
Financing for U.S. exports in the form of loans or guarantees is
available through Eximbank. However, a Moroccan guarantee, either from
the government or from a private bank, may also be required. EXIM has
established a small bundling facility (a line of guaranteed credits of
USD 10.0 million) with Credit du Maroc (CDM). Although other Moroccan
banks have expressed some interest in this program, they have not
overcome the reluctance of Moroccan importers to take on the foreign
exchange risk of borrowing in dollars. The principal multilateral
financial institutions such as the World Bank, the IFC, the African
Development bank, and the European Investment Bank all lend to Morocco
for infrastructure development.
The U.S.D.A. credit guarantee programs (GSM-103 / GSM-102) are made
available to Morocco to purchase various agricultural commodities from
the U.S. The public GSM-103 comprises USD 65 million for wheat and USD
40 million for feed grains. The private sector line, GSM-102, provides
USD 20 million for wheat, and USD 5 million each for vegetable oil, feed
grains and cotton.
Citicorp structured trade finance, in cooperation with OPIC, now offers
a new approach to African trade finance for U.S. exporters to Africa.
The African Trade Finance Facility (ATFF) was developed jointly by
Citicorp and OPIC to address the lack of availability of financing. To
obtain more information, contact one of the following addresses.
A. Citicorp Structured Trade Finance
Contact: Maurice Johnson
Tel: (212) 559-7998; Fax: (212) 793-2330
CITICORP
399 Park Avenue, 5/13
New York, N.Y. 10043
B. Overseas Private Investment Corporation (OPIC)
Dureka Lang Carrasquillo (202) 336.8576
Leslie Dougherty Biddle (202) 408-5142
Fax: (202) 408-5142
1100 New York Avenue, N.W.
Washington, D.C. 20527
Before proceeding with any international transaction, it is advisable to
contact your local USDOC District Office for counselling and further
information about the market.
The International Finance Assistance Section (which can be found under
that topic heading on the NTDB), provides not only information on
specific assistance available from USG financing agencies such as the
U.S. Exim Bank and OPIC, but also information on the Multilateral
Development Banks.
Project Financing Available
Financing for projects in Morocco comes primarily from the World Bank
and the African Development Bank (AFDB), the European Investment Bank,
the Kuwaiti Fund, the Saudi Fund and the Abu Dhabi Fund.
Projects Scheduled for Financing by the World Bank and the AFDB
World Bank
USD 70.0 million to the Ministry of Environment, Hydraulic
Administration, Regie of Kenitra - Environmental Protection II - Project
supports treatment and disposal of industrial and domestic wastes in the
Sebou River Water Basin. Will also include introduction of pollution
control technologies; and strengthening of regulatory framework and
integrated environmental management.
--Need for consultants not yet determined
--Project under preparation, Pre-appraisal mission by October 1995
USD 110.0 million for Fez historic City Rehabilitation - Project will
revitalize Medina's impoverished and environmental degradation through
environmental upgrading; provision of urban infrastructure and community
facilities; and implementation of a heritage conservation strategy
fitting with the historic city's social, economic and cultural
dimension.
--Need for consulting services yet to be determined
--Project under preparation, appraisal likely in FY'96.
USD 110.0 million for the Ministry of Public Works - Water Sector
Investment (WSIL) - Project aims to assist the Government in defining
and implementing a comprehensive water resource management strategy.
--Need for consultants not yet determined
--Project preparation under way
USD 110.0 million for the Ministry of Agriculture and Agricultural
Production.
- Private Sector Development (PSD III) - Project objective is to promote
private sector development and investment in agroindustries by providing
the necessary infrastructure and enabling regulatory and institutional
environment.
--Need for consultants not yet determined
--Project preparation under way
USD 100.00 million for Fonds d'Equipement Communal (FEC) - Second
Municipal Finance - Project aims to improve local sector management and
foster private provision and financing of local services. It will
include funds to finance a variety of local infrastructure sub-projects.
--Need for consultants not yet determined
--Project preparation under way.
USD 40.0 million for the Ministry of Health - Health Management -
Project would support: (a) implementation of new financing mechanisms,
mainly health insurance; (b) hospital management reforms; and (c)
rehabilitation of health infrastructure.
--Need for consultants not yet determined
--Appraisal mission currently in the field.
USD 200.0 million for the Ministry of Finance - Private Sector
Development
(PSD I) - Support for the implementation of financial policies and
strengthening of institutions to foster private sector development,
including financial and capital markets.
--Need for consultants not yet determined
--Appraisal mission currently in the field.
USD 100.0 million for the Direction des Routes et de la Circulation
Routière (DRCR) - Secondary Roads - The project would: (a) strengthen
institutions in charge of road maintenance, road funding and network
management; (b) improve communication within regions and access to rural
areas; (c) reduce the maintenance backlog and widen sud-standard
pavements; (d) improve road safety;
and (e) improve road transport efficiency.
--Consulting services will be required
--Negotiations currently under way in Rabat.
USD 60.0 million for the Ministry of Agriculture Development - National
Watershed Management - To improve land use and natural resources
management in mountain areas and reduce siltation in reservoirs and
associated hydraulic infrastructure. Main components would include: (a)
institutional and organizational development; (b) improvement of legal
framework for land use in mountain areas; (c) investments in selected
watersheds; (d) applied and adaptive research and extension; (e)
technical assistance and training.
--Need of consulting services to be determined
--Project preparation under way.
African Development Bank
USD 750 million total with AFDB funding of USD 61 million for a wide
variety of telecommunication equipment, upgrades and services. Executing
agency is the ONPT in Casablanca in association with the Ministry of
Telecommunications. Approved in 1993, over half the total funds remain
to be obligated.
USD 70.0 million total with AFDB funding of USD 43 million for the sixth
potable water supply project for ONEP in Rabat. The project comprises
of:
(a) rehabilitation of six water stations, (b) construction of two water
intake structures, (c) procurement of laboratory equipment, (d) sewerage
studies and work supervision. Approved in May, 1994, some but nearly all
bids have been announced.
List of Banks with Correspondent U.S. Banking Arrangements
Among the leading commercial banks in Morocco, the following deal with
major U.S. corresponding banks:
BANQUE MAROCAINE DU COMMERCE EXTERIEUR
Citibank
Bankers Trust
Chase Manhattan
Chemical Bank
Bank of America
Bank of New York
CREDIT DU MAROC
Bank of New York
Chemical Bank
American Express Bank
Credit Lyonais of New York
USEXIM Export Credit Program
CITIBANK-MAGHREB
Citibank
BANQUE COMMERCIALE DU MAROC
Citibank
Bank of New York
Chase Manhattan Bank
Chemical Bank
American Express
National Bank for Cooperatives
First National Bank of Chicago
First Bank of America
Arab-American Bank of New York
State Street Bank & Trust Company
BANQUE MAROCAINE POUR LE COMMERCE ET L'INDUSTRIE
Bank of New York
Citibank
First American Bank Inc.
American Express
WAFABANK
Citibank
Arab Banking Corporation (ABC)
Ubaf
Bankers Trust Co.
Chase Manhattan
Manufacturers Hanover Trust Co.
Bank of New York
Continental Bank
Bank of America
SOCIETE GENERALE MAROCAINE DES BANQUES
Societe Generale
Citibank
Chase Manhattan
BANQUE CENTRALE POPULAIRE
Chemical Bank
Bank of New York
Citibank
Arab Banking Corporation
Bank of America
IX. BUSINESS TRAVEL
Business Customs
Morocco is a Muslim country. Business meetings are best avoided on
Friday, which is the main prayer day. Consumption of alcohol during the
fasting month of Ramadan and eating of pork is prohibited for Muslims
only. Businesses operate Monday through Friday.
Customs regulations permit duty-free entry of clothing, personal
effects, and household items intended for personal use, subject to
specified limits on amounts of film, tobacco and other consumables.
Travellers wishing to import a vehicle must present the registration
papers issued in the country of origin to obtain free entry. The
initial dispensation expires at the end of 6 months, at which time the
vehicle becomes subject to the usual customs provisions. With the
exception of limited personal allowances for alcoholic beverages and
tobacco products, all other goods for sale are subject to duty.
Travel Advisory and Visas
U.S. citizens do not need a visa for entry into the country.
Holidays
Official holidays and others on which government offices and business
establishments are likely to be closed are:
January 1 (New Year), March 3 (Throne Day), March 15 (Aid El Fitr), May
1 (Labor Day), May 23 (National Holiday), May 21 (Aid El Adha), May 10
(Moslem New Year), July 9 (King's Birthday), August 14 (Saharan Province
Day), Aug.20 (Prophet's Birthday), November 6 (Green March Day),
November 18 (Independence Day).
Note: Holidays underlined are based on the lunar calendar and change
every year. Dates shown are those projected for 1995.
Business Infrastructure
Transportation to and from Morocco is extensive. Morocco has more than
16,000 miles of paved roads and well over a thousand miles of rail
lines. Additionally, Morocco has 10 main ports and 6 international
airports.
The following airlines provide freight and scheduled passenger air
service between Morocco and most major international locations.
ROYAL AIR MAROC offers every Tuesday and Saturday year-round non-stop
B747 service from New York to Casablanca. There are also regular
connections to and from Europe, West Africa and the Middle East.
KLM/NORTHWEST operates from New York twice daily with 747 service to
Amsterdam. There is a new 4 times weekly service from
Baltimore/Washington International Airport. Houston, Atlanta, Chicago,
Los Angeles and Minneapolis also have regularly scheduled service to
Amsterdam with connecting flights to Casablanca three days a week.
LUFTHANSA flies to Morocco via Frankfurt from 13 U.S. cities, 4 times a
week.
BRITISH AIRWAYS, through Gibraltar Airlines, operates 4 to 5 flights a
week from Heathrow to Casablanca via Tangier or Gibraltar. BA has a
cooperative but informal agreement with domestic United Airlines
flights.
AIR FRANCE offers frequent connections to Morocco via Paris from
Anchorage, Boston, Chicago, Houston, Los Angeles, Miami, Newark, New
York (JFK), San Francisco or Washington DC.
Several U.S. and international shipping lines offer frequent dry cargo
container service and frozen and refrigerated service to and from
Morocco's many ports. There is however, no direct shipping service to
Morocco from the U.S.
Language: While the official and most important indigenous language is
Arabic, French is the language of business. A substantial and growing
number of Moroccan entrepreneurs can conduct business in English.
Communications: The telephone service is being improved. Mobil cellular
phones can be rented in major hotels. It is now possible to direct dial
a large number of foreign countries. Telefax and telex facilities for
communication to most parts of the world are also available. Direct
dialing to the United States is available, but expensive. Dialing
Country Code from the United States to Morocco is 212, Casablanca 2,
Rabat 7. The PTT operates a packet switching network "Magrhipac"
permitting 1,200 band data transmission to U.S. gateways like tymenet.
Morocco is in the early stages of development for Internet.
Housing: Rental of apartments and houses in Casablanca is expensive.
Depending on size and area, e.g. a two story 4 bedroom house with a good
garden and standard amenities in a very good neighborhood can cost about
USD 35-40,000 per year. Two year leases, with rent payable quarterly,
are common.
Office Space: Good office space in the major cities is abundant but not
cheap. Although rents have softened in the past year by up to fifteen
percent, international standard space is still in high demand. Rent
prices are, however, negotiable.
Health: There are 48 private clinics and about 80 government hospitals
in major cities providing basic health care and surgery. Dental care is
good and there are several English speaking doctors and dentists in
Casablanca and Rabat.
Time: Morocco is on Greenwich Mean Time.
Currency: The Moroccan currency unit is the Dirham, abbreviated as DH.
There are 100 centimes to each dirham. Bank notes are denominated in
200, 100, 50, and 10 dirhams.
Weights and Measures: The metric system is used.
Electrical Standards: Electric power in Morocco is 50 cycle, one and
three phase, with nominal voltage in the largest cities at 110 or 220
volts (usually the latter).
Food: Tap water in major cities is generally potable, but as a short-
time visitor it would be wise to drink only bottled water. Food in
general is good in Morocco, however unless someone has been living or
traveling in this part of the world for a long time, it is best to avoid
eating raw produce such as salads or unpeeled fruits. Good to excellent
restaurants abound.
Schools: There are American Schools in Casablanca, Rabat and Tangier
(weekly boarding available here) offering classes from Kindergarten thru
grade 12. There are also French and Spanish schools available, in
addition to local education.
Hotels: Among the better 4 or 5 star business hotels are:
CASABLANCA
Casablanca Hyatt Regency
Phone (212) [2] 261234; Fax 220180
Casablanca Sheraton
Phone (212) [2] 317878; Fax 315136
Holiday Inn
Phone (212) [2] 294949; Fax 293034
Royal Mansour
Phone (212) [2] 313011; Fax 314818
RABAT
Rabat Hyatt Regency
Phone (212) [7] 771234; Fax 772492
La Tour Hassan
Phone (212) [7] 721401; Fax 725408
TANGIER
El Minzah
Phone (212) [9] 947011; Fax 947011
X. APPENDICES
APPENDIX A: Country Data
Population: 28 million
Population Growth Rate: 2.2 percent
Religion: Islam, Judaism (less than 1%)
Government System: Constitutional Monarchy. King Hassan II
has reigned since 1961.
Languages: French (business), Arabic (official)
Berber dialects, Spanish (in north)
Location: On the northwest corner of Africa, less
than 20 kms across the Straits of
Gibraltar from Spain
Area: 280,000 square miles, about the size of
Oregon and Washington combined
Coastline: 2,120 miles, Mediterranean Sea and
Atlantic Ocean
Climate: Mild Mediterranean climate
Work Week: Monday - Friday, generally 8:30-12:30
a.m. and 2:00-6:30 p.m. with summer
variation
Direct Dial Country Code: (212), Casablanca (2), Rabat (7), Tangier (9)
APPENDIX B: Domestic Economy
USD millions, except where noted
1994 1995e 1996e
Gross Domestic Product 31,000 31,600 35,730
Real GDP growth (percent) 12 -5 6
GDP per capita ($) 1,213 1,211 1,341
Government Spending (percent GDP) 23 24 24
Inflation (Dec/Dec CPI pct chg) 5.7 7.5 7.5
Unemployment (Urban, percent) 17 17 17
Foreign exchange reserves (yr end) 4,630 4,000 4,400
Average exchange rate (Dh/$) 0 9.2 8.5 8.5
Foreign Debt 21,000 21,000 21,000
Service Ratio (debt payments 35 35 35
(as a pct of foreign income)
U.S. economic/military assistance 23 43 n/a
Source
1994: Moroccan government preliminary data and Embassy estimates.
1995 and 1996: Embassy projections (1996 economic performance will
depend on future exogenous factors, notably rainfall during the winter
of 1995/1996).
APPENDIX C: Trade
USD Millions, except where noted.
1994 1995(e) 1996(e)
Total Country Exports 4,059 4,980 5,500
Total Country Import 7,233 8,48 9,330
U.S. Exports 624 778 895
U.S. Imports 143 170 190
For 1995/96 the above statistics are unofficial estimates.
Source
1994: Moroccan Government Statistiques du Commerce Extérieur
1995/96: U.S. Embassy projections.
APPENDIX D: Investment Statistics
There are no statistics on the amount of foreign investment in Morocco.
The Moroccan foreign exchange office maintains balance of payments
statistics which include annual foreign exchange inflows for private
foreign investment. These statistics do not correspond exactly to
foreign direct investment (e.g., they include portfolio investment).
They are, however, the closest approximation to foreign direct
investment available. The statistics show USD 554 in foreign investment
inflows in 1994, which represents approximately 2 percent of GDP. The
following tables are based on the balance of payments statistics.
Foreign Investment Inflows by Country of Origin
(USD millions)
Country 1991 1992 1993 1994
France 111.5 118.4 128.8 190.6
United Kingdom 13.7 10.1 118.0 140.1
United States 10.8 34.4 42.5 59.9
Switzerland 36.9 32.2 99.2 35.3
Saudi Arabia 32.2 26.4 27.4 31.1
Spain 27.4 94.8 73.6 28.3
Germany 9.3 9.6 4.7 11.0
U.A.E. 28.3 20.3 41.0 5.3
Italy 7.3 10.0 5.6 5.0
Others 144.4 147.1 49.4 48.3
Total 421.8 503.3 590.2 554.9
N.B.
Exchange rate (dh/USD) 8.7 8.5 9.3 9.2
GDP (USD billions) 27.7 28.8 27.6 31.0
Foreign Investment Inflows by Sector
(USD millions)
Sector 1991 1992 1993 1994
Holding Companies 55.9 32.6 56.7 193.2
Other Industry 87.1 129.0 125.8 113.9
Banking 56.7 57.9 164.3 97.7
Commerce 18.5 33.6 3.0 53.4
Others 42.6 107.3 102.5 30.1
Tourism 23.8 4.9 41.5 23.9
Real Estate 59.5 39.1 39.6 18.3
Textiles 11.5 7.4 9.6 7.0
Fishing 2.2 0.5 2.2 4.9
Mining 1.9 58.3 25.7 3.1
Public Works 6.2 19.8 12.5 3.0
Other Services 4.1 7.8 3.4 2.7
Agriculture 2.6 3.7 2.6 2.2
Transport 2.9 1.4 0.8 1.5
Total 375.5 503.3 590.2 554.9
N.B.
Exchange rate (dh/USD) 8.7 8.5 9.3 9.2
GDP (USD billions) 27.7 28.8 27.6 31.0
APPENDIX E: U.S. and Country Contacts
COUNTRY GOVERNMENT AGENCIES
MINISTRY OF EXTERNAL TRADE, EXTERNAL INVESTMENT, & HANDICRAFTS
63, Avenue Moulay Youssef
10000 Rabat, Morocco
Phone: (212) (7) 70-33-63
Fax: (212) (7) 70-01-37
MINISTRY OF FINANCE
Ancien Quartier Administratif
Rabat, Morocco
Phone: (212) (7) 70-31-31
Fax: (222) (7) 76-40-81
CUSTOMS AND INDIRECT TAXES ADMINISTRATION
Place Mohammed V
Casablanca, Morocco
Phone: (212) (2) 22-41-16
Fax: (212) (2) 26-07-06
MINISTRY OF TRADE AND INDUSTRY
Quartier des Ministeres
Rabat-Chellah, Morocco
Phone: (212) (7) 76-18-78
Fax: (212) (7) 76-62-05
DIRECTION DES STATISTIQUES
Blvd. Maa El Aynain
Agdal-Rabat, Morocco
Phone: (212) (7) 77-36-06
Fax: (212) (7) 77-30-42
OFFICE NATIONAL DE L'ELECTRICITE (ONE)
Driss Benhima, General Manager
65, Rue Othman Ben Affane
Casablanca, Morocco
Phone: (212) (2) 22-41-65
Fax: (212) (2) 22-00-38
OFFICE NATIONAL DES POSTES & TELECOMMUNICATIONS (ONPT)
Abdeslam Ahizoune, General Manager
6, Rue Oqbah
Rabat, Morocco
Phone: (212) (7) 70-64-64
Fax: (212) (7) 70-20-22
OFFICE NATIONAL DE L'EAU POTABLE (ONEP)
Lahoucine Tijani, General Manager
6, Bis Rue Patrice Lumumba
Rabat-Chellah, Morocco
Phone: (212) (7) 72-65-15
Fax: (212) (7) 73-13-55
OFFICE CHERIFIEN DES PHOSPHATES (OCP)
Mourad Cherif, General Manager
Route d'El Jadida
Casablanca, Morocco
Phone: (212) (2) 23-01-25
Fax: (212) (2) 25-09-99
OFFICE D'EXPLOITATION DES PORTS (ODEP)
Mohamed Halab, General Manager
175, Blvd. Mohamed Zerktouni
Casablanca, Morocco
Phone: (212) (2) 23-23-24
Fax: (212) (2) 23-23-35
COUNTRY TRADE ASSOCIATIONS/CHAMBERS OF COMMERCE
CONFEDERATION GENERALE ECONOMIQUE MAROCAINE (CGEM)
Abderrahim Lahjouji, President
23, Rue Mohamed Abdouh
Casablanca, Morocco
Phone: (212) (2) 25-26-96
Fax: (212) (2) 25-38-39
AMIPROS
(Association of Grains Importers)
Mohamed Raissi, President
223 Blvd. Mohammed V
Casablanca, Morocco
Phone: (212) (2) 30-24-04
Fax: (212) (2) 30-52-27
LESIEUR/UNIGRAL CRISTAL
(Oilseeds Crushers, Cooking Oil Refiner)
Hamadi El Oufir, Director
2, Rue Caporal Corbi
Casablanca, Morocco
Phone: (212) (2) 35-46-36
Fax: (212) (2) 35-40-97
ASSOCIATION DES FABRICANTS D'ALIMENTS COMPOSES (AFAC)
(Association of Feed Manufacturers)
Idrissi Abbes Touzani, President
c/o INAM, 149/51 Route de Ouled Ziane
Casablanca, Morocco
Phone: (212) (2) 24-28-08
Fax: (212) (2) 40-35-36
AMERICAN CHAMBER OF COMMERCE
Randy Browning, President
18, Rue Colbert
Casablanca, Morocco
Phone: (212) (2) 31-14-48
Fax: (212) (2) 31-66-07
OFFICE DES FOIRES ET EXPOSITIONS DE CASABLANCA
Abdelkader Berbache, General Manager
11, rue Jules Mauran
Casablanca, Morocco
Phone: (212) (2) 22-28-13
Fax: (212) (2) 26-49-49
ASSOCIATION DES INDUSTRIES MINIERES
Mohamed Lakhsassi, President
1 Place de l'Istiqlal
Casablanca, Morocco
Phone: (212) (2) 30-68-98
Fax: (212) (2) 31-99-96
ASSOCIATION MAROCAINE DU CONSEIL ET DE L'INGENIERIE
(Engineering)
Balafrej, President
Charii Maryniyines, Secteur 22 Hay Ryad.
Rabat, Morocco
Phone: (212) (7) 71-10-90/94
Fax: (212) (7) 71-10-87
ASSOCIATION DES MARCHANDS ET IMPORTATEURS DE MATERIEL AGRICOLE
Ouazzani, President
Comicom, 9 Boulevard d'Oujda
Casablanca, Morocco
Phone: (212) (2) 30-22-11
Fax: (212) (2) 30-60-82
APEBI
(Telcom/Computers)
A. Doss Bennani, President
Place Zellaqua, Tour Atlas
Casablanca, Morocco
Phone: (212) (2) 30-85-85
Fax: (212) (2) 30-00-30
COUNTRY MARKET RESEARCH FIRMS:
CREARGIE MAROC
Dominique Schwartz, General Manager
106, Rue Abderrahmane Sahraoui
Casablanca, Morocco
Phone: (212) (2) 27-96-57
Fax: (212) (2) 29-36-66
KILMER INVESTMENTS
Robert Jennings, General Manager
44 Lotissement Zohra, El Harhoura
Rabat, Morocco
Phone/Fax: (212) (7) 74-79-12
M.T.D.S.
James Lowenthal, General Manager
43, Rue Oukaimeden, No. 2
Rabat-Agdal, Morocco
Phone: (212) (7) 67-48-61
Fax: (212) (7) 67-48-63
O.T.I. MAGHREB
McClain Ramsey, Administrator
95, Blvd. El Massira Khadra
Casablanca, Morocco
Phone: (212) (2) 23-37-22
Fax: (212) (2) 25-40-11
COUNTRY COMMERCIAL BANKS
CITIBANK-MAGHREB
Jaloul Ayad, Managing Director
52, Avenue Hassan II
Casablanca, Morocco
Phone: (212) (2) 22-41-68
Fax: (212) (2) 27-54-3
BANQUE COMMERCIALE DU MAROC
Malik Annabi, Head of Int'l Department
2, Blvd Moulay Youssef
Casablanca, Morocco
Phone: (212) (2) 22-41-69
Fax: (212) (2) 26-88-52
BANQUE MAROCAINE DU COMMERCE EXTERIEUR
Farid Arfaoui, Head of Int'l Department
140, Blvd. Hassan II
Casablanca, Morocco
Phone: (212) (2) 20-03-25
Fax: (212) (2) 20-04-90
BANQUE MAROCAINE POUR LE COMMERCE ET L'INDUSTRIE
Mustapha Faris, President
26, Place Mohammed V
Casablanca, Morocco
Phone: (212) (2) 22-41-61
Fax: (212) (2) 20-89-78
WAFABANK
Larbi Aouad, Head of Int'l Department
163, Avenue Hassan II
Casablanca, Morocco
Phone: (212) (2) 22-41-05
Fax: (212) (2) 26-62-02
CREDIT DU MAROC
Jamal Lemridi, Director Int'l Affairs
48-58 Blvd. Mohammed V
Casablanca, Morocco
Phone: (212) (2) 22-41-42
Fax: (212) (2) 27-71-27
SOCIETE GENERALE MAROCAINE DE BANQUES
Omar Tazi, General Manager
55 Blvd. Abdelmoumen
Casablanca, Morocco
Phone: (212) (2) 27-92-69
Fax: (212) (2) 26-28-51
BANQUE CENTRALE POPULAIRE
Rachid Bennani-Smires, Director Int'l Affairs
101 Blvd. Mohammed Zerktouni
Casablanca, Morocco
Phone: (212) (2) 20-25-33
Fax: (212) (2) 22-26-99
U.S. MISSION TRADE PERSONNEL
EMBASSY RABAT
2, Avenue de Marrakech
Rabat, Morocco
Phone: (212) (7) 76-22-65
Fax: (212) (7) 76-56-61
-James Yellin, Economic Counselor
-Don Koran, Economic Officer
-Quintin Gray, Agricultural Attache
-Susan Riley, Private Sector Officer, USAID
-Karima Hammoud, Commercial Assistant, US Commercial Service
-Aziz Abdelali, Agricultural Marketing Specialist
-Colonel Grant Lorenz, Office Defense Corporation
CONSULATE GENERAL CASABLANCA
US AND FOREIGN COMMERCIAL OFFICE
8, Blvd. Moulay Youssef
Casablanca, Morocco
Phone: (212) (2) 26-45-50
Fax: (212) (2) 22-02-59 or 20-41-27
-Frederic Gaynor, Commercial Counselor
-Michael Ratney, Economic Officer
-Latifa Louraoui, Senior Commercial Specialist
-Wafaa Belkacemi, Commercial Assistant
WASHINGTON-BASED USG COUNTRY CONTACTS
U.S. Department of Commerce
Regional Director: Benjamin Brown, ANESA/US&FCS Washington, D.C.
Phone (202) 482-4836; Fax 482-5179
-Deputy Regional Director: Shakir Farsakh
Morocco Desk Officer: David Gugliemi, IEP/ANESA Washington, D.C.
Phone: (202) 482-5545; Fax 482-5179
Multilateral Development Bank Office
Brenda Ebeling, Director
Department of Commerce
14th and Constitution, N.W.
Washington, D.C. 20007
Phone: (202) 482-3399; Fax: 482-5179
TPCC TRADE INFORMATION CENTER
Washington, D.C.: 1-800-USA-TRADE
U.S. Department of State
Morocco Desk Officer: Anthony Benesch, NEA/MAG Washington, D.C.
Phone (202) 647-4675; Fax: 736-4458
U.S. Department of Agriculture
Foreign Agriculture Service (FAS)
Director Grain & Feed Division: Cina Radler, Washington D.C.
Phone: (202) 720-3403; Fax: 720-0340
U.S. Trade Development Agency
Regional Director Africa/Middle East: John Richter
Phone: (703) 875-4357; Fax: 875-4009
U.S. Export Import Bank (Exim)
Africa and Middle East Division
811 Vermont Avenue, NW, Washington D.C. 20571
Phone: (202) 566-8859; Fax: 566-7524
Office of Private Investment Corporation (OPIC)
1100 New York Avenue, NW
Washington, DC 20527
Phone: (202) 336-8799
Toll-free: (800) 424-OPIC (6742)
U.S.-BASED MULTIPLIERS RELEVANT FOR COUNTRY
Arab-American Chamber of Commerce (NewYork)
Phone: (212) 986-8024
Fax: (212) 996-0216
Moroccan Embassy
1601 21st Street NW
Washington, D.C. 20009-1002
Phone: (202) 462-7979
Fax: (202) 265-0161
APPENDIX D: Market Research
Market Research published in FY'95 by the U.S. Commercial Service
--Pollution Control Equipment & Services
--Materials Handling Equipment
--Telecommunication Services
Market Research planned for 1996
- Franchising
- Medical Equipment and Supplies
- Electric Power Generation Equipment
List of USDA/FAS/Commodity Reports & Briefs
===========================================
Report Date Due (Yearly)
===========================================
Oilseeds & Products February 1
Grain & Feed March 6
Sugar April 10
Tobacco & Products May 1
Cotton June 1
Citrus November 1
Almond August 20
Agricultural Situation September 30
Seafood Report (Squids) September 15
APPENDIX E: Trade Event Schedule
Multi-State Catalog Exhibition "Products for Development" March 13-14, 1996.
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