Industry in Morocco

Morroco Industry
	Textiles and clothing Food processing The Electrical and Electronics Chemical and Para-chemical industry Mechanical and metallic   Useful links :         The Ministry of Industry

Counting a total 7,828 units operating, the industrial sector recorded good results in 2006 compared to 2005. The industrial GDP, which rose by 18% in 2005, registered a less important increase in 2006 (2%), while investment in the sector continued its expansion, with a high growth rate of 19%. Exports, for their part, saw little progress, growing only by two percentage points more than the previous year, standing at 8%. The added value also plunged from 18% to 2%.

Sectors	number of companies		turnover		exports		production		investments		added  value		total  staff
	Nbr.	%	value	%	value	%	value	%	value	%	value	%	Nbr.	%
Food industry	2 001	-1	72 452	4	10 361	-1	64 025	3	2 807	-4	25 071	2	87 045
Textile and leather industry	1 772	-6	26 331	3	17 136	2	26 055	3	1 471	-5	9 557	-2	207 745
Chemical and Para-chemical industry	2 310	-2	103 979	14	18 181	6	96 447	15	9 032	70	22 312	-1	113 191	8
Mechanical and metallurgical industry	1 472	-4	33 422	10	3 813	31	30 405	12	1 239	-52	7 510	6	51 046	3
Electric and electronic industry	195	-3	17 021	25	10 507	36	16 205	27	1 019	46	4 135	14	36 913	13
Total	750	-3	253 205	10	59 997	9	233 135	10	15 567	19	68 585	1	495 941	3

Source: Ministry of Industry

	1- Textiles and clothing
	At the heart of Emergence programme, the textiles and clothing sector plays a major role in the country’s economy. It is the top industrial employer, providing about 200,000 jobs to 42% percent of the labour force working in the industry. Although it is facing fierce competition from Asian countries, China in particular, the sector is showing growth signs, thank to the efforts made to maintain its competitiveness. As part of the Emergence plan, the government has created a fund of an annual MAD 20 million earmarked for financing the development of the sector. The initiative aims at ameliorating the image of Moroccan products in the world markets, and attracting more foreign investors towards the Moroccan textile industry. Textile represents 40% of industrial exports, which chalked up an increase of 15.3% in 2006, reaching MAD 27.8 billion, up from 24.1 in 2005. For the same year, Spain came first in terms of Moroccan textile products imported. It imported MAD 9.7 billion worth of products, a rise of 38.5% compared to 2005. France, which lost it leadership, came second, with MAD 8.5 billion, followed by Great Britain (MAD 4.6 billion), Germany (MAD 1.4 billion), Portugal and the United States, which doubled their imports compared to 2005, MAD 621 million and MAD 317 million, respectively. The sector covers five types of activity:  Warp and woof Knitted fabric Jeans Sportswear Household textiles  Textile and leather 2004 2005  Contribution to the GDP 3,0% 2,8%  Production MAD 25 965 million MAD 25 079 million  Number of jobs 216 962 205 103  Added value MAD 10 171 million MAD 9 640 million  Investments MAD 1 376 million MAD 1 553 million  Exports MAD 17 693 million MAD 16 644 million Source: Official website of the Ministry of Industry

	2- Food processing industry
	Benefiting from Morocco’s temperate climate, good soil, and water resources, the food industry is the second largest processing industry in Morocco after the chemicals and para-chemicals sector. It generates an output of USD 6.78 billion and an added value of USD 2.07 billion (31% of GDP). With exports reaching USD 1.14 billion, the industry processes mainly meat, fish, fruit and vegetables, oils, milk products, cereals, flour and grits, beverages and tobacco. Seafood :  The seafood sub-sector also benefits from Morocco’s 3,500km coastline which is know for its richness in terms of fish. Production capacity has been estimated by the FAO at nearly 1.5 million tons annually, and Morocco is considered the largest fish producer in Africa and the Arab world. This sub-sector generates up to 50% of processed food exports and 12% of total Moroccan exports.  Textile and leather 2004 2005  Contribution to the GDP 5,3% 7,1%  Production MAD 59 528 million MAD 61 732 million  Number of jobs 109 602 85 578  Added value MAD 18 032 million MAD 24 530 million  Investments MAD 2 715 million MAD 2 924 million  Exports MAD 10 190 million MAD 10 335 million Source: the Ministry of Industry    Sub-sectors Number  of companies turnover Number of  jobs  Fabrication of flour and grits 1 096 2 349 347 11 074  Beverage industry 33 5 651 748 4 333  Oils industry 172 8 506 964 4 894  Fruit and vegetables industry 103 2 383 549 4 923  Meat industry 46 842 756 1 896  Fish industry 198 7 220 859 17 234  Tobacco industry 4 9 055 092 1 590  Milk products industry 74 9 626 769 9 602  Cereals transformation; starch manufacturing and animal food 205 16 449 773 8 811 Source: the Ministry of Industry (2005) - the values are in MAD thousand

	3- The Electrical and Electronics Industry (EEI)
	The electrical and electronics industry is focused on six main sub-sectors: wiring and cables, electronic components, electrical distribution equipment, electrical batteries and storage devices, electric devices and lamps, and electric transformers and generators.  With 198 companies (3% of manufacturing industrial units), the electrical and electronic sector registered in 2005 a production of MAD 16 billion, an added value of MAD 68,6 billion. For the same year, exports exceeded MAD 10.5 DHS billion, while investments reached MAD 1 billion, 7% of investments carried out in the industrial sector across the country. As for employment, the sector contributes by about 7% to the general workforce active in the industrial sector, that is, more than 32,741 workers.  The development of the Electrical and Electronics Industry between 2003-2006   2003 2004 2005 2006 total var total var total var total var  Number of units 203 5 203 0 207 -2 198 -4  Production 10 298 18 11 284 10 12 737 13 16 205 27  Added value 3 172 15 3 194 1 3 635 14 4 135 14  Exports 6 764 24 7 435 10 7 713 4 10 507 36  Investments 503 -37 492 -2 697 45 1 019 46  Number of jobs 31 086 3 30 350 -2 32 801 8 36 913 13 Source: Ministry of Industry (Value in MAD million) The sector is increasingly attracting new investments, encouraged by the high growth potential, the highly qualified workforce, a resolutely export-oriented approach, diversified upstream industries, and the presence of major international players (ABB, ST Microelectronics, Nexans, Ingelec, Thales, Alstom, etc.). It is also expected to grow further thanks to the expansion of the automobile sector, the investment incentives offered by the State, the expansion of electronic component sub-contracting, in which Morocco is becoming a global hub.

	4- Chemical and Para-chemical industry
	The chemical and para-chemical industry enjoys a privileged position in the Moroccan industrial fabric. With about 2,346 units, 30% of the overall number of industrial units, it contributes by up to 41% of industrial production and 33% to the industrial GDP. This industry also employs 23% of people working in the industrial sector and attracts 58% of gross industrial investments.     2003 2004 2005 2006 total var total var total var total var  Number of units 2 346 7 2 425 3 2 381 -2 2 334 -2  Production 61 830 -5 69 522 12 83 709 20 96 443 15  Added value 19 407 -1 19 503 0 22 604 16 22 314 -1  Exports 11 716 -11 14 898 27 17 192 15 18 180 6  Investments 3 615 -2 6 179 71 5 306 -14 9 031 70  Number of jobs 98 078 3 99 086 1 105 105 6 11 208 8 Source: Ministry of Industry (Value in MAD million) The chemical and para-chemical industry is composed of eight branches:  Wood work Paper and paperboard Publishing, printing and reproduction Coking, refining and nuclear industries Chemical Industry Rubber and plastic products Other non-metallic mineral products Furniture and miscellaneous industries

	5- Mechanical and metallic industry
	In 2006, the mechanical and metallic industries, counting some 1,485 units, 19% of overall industrial units, produce more than MAD 30 billion, 13% of overall production. Exports registered more than MAD 18 billion, 6% of gross industrial exports, chalking up an added value of about MAD 7.5 billion, 11% of industrial GDP. The industry employs about 50,000 people, 10% of the total industrial workforce. This sector’s performance in 2006 was less satisfactory relative to the precedent year.     2003 2004 2005 2006 total var total var total var total var  Number of units 1 485 5 1 556 5 1 547 -1 1 479 -4  Production 22 865 13 21 842 -4 27 155 24 30 408 12  Added value 6 624 8 6 388 -4 7 076 11 7 510 6  Exports 1 936 -9 1 727 -11 2 909 68 3 813 31  Investments 1 120 -30 880 -21 2 597 195 1 239 -52  Number of jobs 49 735 4 51 643 4 49 575 -4 51 050 3 Source: Ministry of Industry (Value in MAD million) The sector counts six branches:  Metallurgy Metal Work Manufacturing machines and equipments Manufacturing office and computer equipment Automotive Industry Manufacturing other transport equipment