Morocco

Since it achieved independence in 1956 the country has made significant progress towards the development of its markets and industry. This movement has proceeded in fits and starts, but in the past decade the increased pace of reforms has led to an export oriented policy that has resulted in the privatization of large areas of the economy and the creation of special trade areas like the Tangier Free Trade Zone, which offer tax free operations and exports to Europe and beyond.

Lacking the petroleum deposits so prevalent in many countries of the region, Morocco has charted its own course -- focusing on the presence of the largest phosphate deposits in the world within its borders. The country has also invested heavily in the fishing industry. In areas such as anchovy, sardine and cephalopod fishing, it is among the world's leaders.

Increasing pace of reforms now starting to bear fruit

Beginning in the 1980's Morocco embarked on an economic reform program at the behest of the IMF and the World Bank. The country has experienced success in the overhaul of its banking system, the reform of its tax code and the easing of import restrictions.

Most significantly, these reforms have freed up the necessary capital to address impediments to future development, notably in the telecommunications sector. With international competition, planned privatizations and an unsaturated domestic market, Morocco is ripe for the growth of the mobile telecommunications sector.

"This is an area where Japan could play a significant role in the growth of the country," remarked Hiromi Sato, former Japanese Ambassador to Morocco. The Japanese government has invested heavily in the development of the Moroccan infrastructure. Using both grant and development aid targeted towards the electrification and irrigation of the countryside, it is hoped the market will soon be able to support more sophisticated products such as advanced telecommunications and modern industrial and agricultural techniques.
Fathallah Oualalou, Morocco's minister of finance, economic affairs and privatization

Under the initiative of the Japanese Embassy in Rabat, cultural ties between Japan and Morocco have also increased. Programs to expose Japanese students to the challenges facing a developing country has led to hundreds of these students visiting the country each year. These developments are essential as Morocco is undergoing a rapid liberalization of its trade regime, and industry must reach levels of international competitiveness by 2008 when free trade with the European Union (EU) is to be implemented.

Foreign participation may be the key to growth in some sectors

Leading the reform efforts domestically is the newly formed government of Prime Minister Driss Jettou, and Fathallah Oualalou, Minister of Finance, Economic Affairs and Privatization. One of the goals of Minister Oualalou is to promote sectors of traditional expertise for the country -- namely fishing and agriculture.

"We are looking to emphasize traditional sectors, while also seeking to modernize them," he says. "In addition to promoting the cultivation of wheat, barley, and corn, we are also encouraging the development of export crops such as tea, tobacco, soybeans, cotton, and sunflowers. These are areas wherein Japanese private investment and expertise could play a welcome role."

"One of the greatest challenges facing the country today is a lack of rural infrastructure to support an internationally competitive agricultural industry. Currently Morocco experiences drought conditions on average once every three to four years. Advanced agricultural techniques could mitigate these occurrences, and in this sector foreign participation will be key to the future success of our country," he also says.

Hiromi Sato, Japan's ambassador to Morocco until 2002

Another key sector of the economy is the fishing industry. Morocco has long been a leading supplier of cephalopods (octopus and squid) to Japan, and the development of this industry in a sustainable manner is of the utmost importance. Fishing industry exports generate approximately $800 million of revenue yearly. New agreements to allow foreign companies to exploit the Moroccan waters is leading to many cooperation deals between Moroccan and international companies.

The growth of Morocco as an international hub for many export-oriented and manufacturing industries has met with great success in recent years. Microsoft Corporation recently made Morocco the headquarters for its African operations covering 23 nations in Africa, and other companies are following suit.

Japanese investment is welcome

While Japanese participation in Morocco is currently limited, there are a few examples of long term cooperation -- most notably with Yamaha which has a 30 year history in the manufacture of motorcycles in the country. Aside from the Japanese, Morocco is home to over 500 multinational companies, most notably those of historically and geographically close France and Spain. In fact there are over 700 examples of Franco-Moroccan joint ventures of varying size operating in the country now.

The promise of Morocco cannot be overstated. Abundant investment opportunities are present in the mining, agricultural, fishing, manufacturing, and construction sectors. It is a country eager for foreign participation and its government - under the leadership of its monarch Mohammed VI - is fully behind a plan to bring Morocco into the 21st century as a globally competitive center that can offer highly skilled workers at prices significantly below those of its European counterparts. While the future is still uncertain, the potential for great success is evident and eminently attainable.

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