KINGDOM OF MOROCCO ------------- PRIME MINISTER ------------- MINISTRY OF ECONOMIC AFFAIRS, GENERAL AFFAIRS AND UPGRADING THE ECONOMY INVESTMENT DEPARTMENT Investment environment and opportunities in Morocco Morocco, meeting investment JETRO BSC Hall, Tokyo 9 June 2004
Morocco, a brief presentation Laâyoune Dakhla Rabat Casablanca Marrakech Agadir Tangier Tangier Free Zone Tanger-Med From Casablanca Paris London Milan Madrid Frankfurt New York Settat Ouarzazate Flights per week 35 14 14 14 11 10 Fes Nador Oujda Flight duration 3:00 3:15 3:00 1:30 3:15 8:00 Kingdom: H.M. Mohammed VI Executive and religious authority Thousand-year-old history 31 millions inhabitants (Japan s 1/5) on 459 000 sq. m. (Japan s 1.5), 40 B$ GDP Rabat (administrative capital) : 1.8 millions inhabitants Casablanca (economic metropolis) : 2.57 mil. inhabitants Tangier (harbor city, close to Spain) Marrakech (historical and tourism) Mediterranean sea and Atlantic sea Atlas mountains, Mt Toubkal (4167 m) Religion : Islam Languages: Arabic (official), French, Spanish (in the north) and Berber Climate: 7-18 in winter, 19-30 in summer 2
Image of Morocco in Japan Before (Monte Carlo) Today 24,000 Japanese visitors/year, many of them returning Trade Japan Morocco: automobiles, white products Morocco Japan: phosphate, octopus, squid and matsutake 3
Japan: an important priority for Morocco UNIDO ITPO Tokyo Delegate programme in 1998 (3 months), 2001 (3 months) and 2004 (6 weeks) JOI, JBIC and UNIDO joint mission to Morocco in 1999 JETRO expert report on Moroccan automotive industry in February 2003 High level JETRO mission in October 2003 Proposed visit of H.E. the Minister in charge of Economic Affairs exclusively with Japanese companies in Paris and Düsseldorf in October 2004 Priority sectors: electronic components and automotive parts 4
Japanese companies feed-back From the Delegate Programme Since 10 May 2004 30 major companies visited: great interest noticed We didn t know Morocco was at that level of achievement Remarks from Japanese companies Language barrier: all the middle and upper management speak English Far & no direct flight: no different than Spain and Portugal Tokyo Madrid: 14 hours (change in Frankfurt) Tokyo Casablanca: 15 hours (change in Paris) 5
Why Morocco today? Central Eastern European countries loose competitiveness Entry into the EU higher wages After looking to the east, Japanese companies may now look to the south Morocco is well positioned, nice living, in a good investment climate and attractive incentives Morocco can offer the quality and cost competitiveness Japanese companies are looking for 6
Position of Morocco The rising star of economic Europe! Imagine connect Spain & Morocco: what would you see? Africa or Europe? Living environment Open & comfortable for Moroccan and foreigners Wonderful sense of hospitality Authentic cuisine (couscous, pastilla, tagines, etc.) With all necessary infrastructures International schools First class hotels Modern hospitals and shopping centers Golf courses, mountains, beaches, etc. 7
Human resources Qualified, available and flexible 3,500 new engineers & technicians per year + abroad Adequate cost of manpower 1/6 of western Europe and 2/5 of Poland (source: Investment Department) High level engineers R&D centers Professional training programs Up to 90% subsidies from the Government 8
Costs of doing business in Morocco Wages Utilities Telecommunications Minimum wage: 0.97 US$/hour Skilled worker: 1.03~12.27 US$/hour Engineers and executives: 733~1222 US$/month Petrol: 255 US$/MT tax incl. Water: 0.53~0.80 US$/m³ Electricity: 0.05~0.11 US$/kWh tax incl. 3 minutes call local: 0.15 US$ - Japan: 4.66 US$ ADSL 256 kbps: 45 US$ - 512 kbps: 66 US$/month tax incl. Internet leased line 128 kbps: 616 US$ - 256 kbps: 1027 US$/month 9
Regulations (FDI issues) Investment charter since 1996 Regional one stop shops since 2002 100% foreign ownership allowed Investment is fully protected and fully repatriable Government is committed to satisfy and facilitate all the requirements of Japanese investors 10
Fiscal incentives Corporate tax: 35% Exporting companies Special projects Tangier Free Zone (100% export) First 5 years: 0% - After: 17.5% VAT exemption for imported goods Followed by the national investment commission 20 million US$ investment or 250 jobs or technology transfer or environment protection Hassan II Fund contribution Simplified administrative & customs procedures First 5 years: 0% - After: 8.75% VAT exemption for imported goods 11
Please visit Morocco! Morocco is doing its best effort to increase the interest of Japanese companies Suggestion: exchange of sector based missions between Morocco and Japan Our aim is to assist Japanese companies succeed with their businesses in Morocco and in Europe, like we have been able to do for many foreign investors, including Japanese 12
They have chosen Morocco Electronics: ST Microelectronics Investment: 350 M 4,800 employees Conception & design center in Rabat More than 100 engineers 3 semiconductors units in Casablanca Company Name Country (M US$) 1 Intel Corporation USA 27,103 2 Samsung Electronics Co., Ltd. Korea 10,502 3 Renesas Technology Corp. Japan 7,936 4 Texas Instruments, Incorporated USA 7,410 5 Toshiba Corporation Japan 7,356 6 ST Microelectronics SA Italy/France 7,180 7 Infineon Technologies AG Germany 6,864 8 NEC Electronics Corporation Japan 6,312 9 Motorola, Inc. USA 4,628 10 Philips Semiconductors B.V. Netherlands 4,513 (Source Gartner Dataquest, March 2004) Products history in Morocco 1980: diodes, triacs, transistors, IC 1989: power transistors and automation programs 2000: RF & subsystems activities 13
They have chosen Morocco Electronics/Electric EU USA Morocco Back-end Backend Backend: assembly, test and design Italy France China Japan ASEAN Singapore Front-end: diffusion process Sector s key figures 180 industrial units (11 for electronics) 22,400 employees (5,523 for electronics) But also Temex CIEA HDN Industries OB Electronics ACRE 14
They have chosen Morocco Automotive Yazaki Wire harnesses New unit expansion Investment: 15 M 1500 employees Sector s key figures 85 companies 20,000 employees But also Sumitomo Wiring Isuzu (technology licensing CKD) Renault (assembly line) Valeo, Delphi, Lear, Volkswagen Valeo, Matra (R&D) 15
Proposals from Moroccan companies No Project title 1 Food can manufacturing plant 2 Wire harnesses 3 4 stars hotel and 18 holes golf 4 Retirees village around artificial lake 5 Truck and semi-trailers 6 Automotive after market 7 Electric and electronics equipment 8 Semiconductors factory 9 Miscellaneous electronic subsets 10 Electronic cards and wire harnesses 16
KINGDOM OF MOROCCO ------------- PRIME MINISTER ------------- MINISTRY OF ECONOMIC AFFAIRS, GENERAL AFFAIRS AND UPGRADING THE ECONOMY INVESTMENT DEPARTMENT Thank you for your attention See you soon in Morocco Karim Benjelloun Senior Advisor Investment Department kb@invest.gov.ma Tel: +212-37673495 Fax: +212 37673417