FT SPECIAL REPORT Doing Business in

Tuesday November 24 2015 www.ft.com/reports | @ftreports

Inside

Fledgling sector A carefully managed transition spreads its wings Growing aeronautics industry is buoyed by Peaceful evolution has has given nominally more powers to the government and parliament, which low labour costs avoided disturbances they can do a lot with if they want to use Page 2 that have afflicted the them. The King is still the supreme leader and strongest actor, but he no Catalyst for change region, says Heba Saleh longerhasalltheprerogatives.” How King Mohammed Four years after it came to office, the PJDremainspopular,eventhoughithas VI secured priority for hree large photographs of achieved little of its plans to improve renewables King Mohammed VI of conditions for the poor while enacting Page 2 Morocco stand on easels in austerity measures, most notably the the hallway outside the abolition of energy subsidies to achieve T office of Mohamed Sadiki, adeficittargetof4.3percentofGDPthis the newly elected Islamist mayor of year. The party’s success in sweeping ,theMoroccancapital. local elections in Morocco’s big urban The pictures are a powerful reminder centres suggests it may be heading for of the immense influence the king another strong performance in next exerts over politics in the north African year’sparliamentary elections. Many of country, even if in recent years he has those who voted for it did so, analysts set in motion a slow evolution towards argue, not because of its Islamist cre- more representative politics to try to dentials, but because of its reputation A click from success calm popular agitation for change after for integrity in a country where people Start-ups’ biggest theArabuprisingsof2011. say they are tired of pervasive corrup- challenge is a dearth of Mr Sadiki, from the governing Party tion. of Justice and Development, PJD, is one But while King Mohammed’sreforms investors, but help is at of several Islamist mayors elected in created a more inclusive political sys- hand for entrepreneurs September to lead almost all the king- tem, the PJD is careful not to cross red Page 2 dom’s main cities, including Rabat, the lines. It poses no challenge to the role of political capital, , the eco- the centuries-old monarchy and to the Private universities try nomic nerve centre, Tangier, Fez and king’s political and religious authority Agadir — a development that would as“CommanderoftheFaithful”. to fill the learning gap have been unthinkable a few years ago Over the years, the party has deliber- The public education when,analystssay,thestatewouldhave ately “restricted” its appetite for power, system is seen as interferedtopre-emptsuchvictories. saysMrMasbah,whonotesthathurdles resistant to reform Mr Sadiki says he is looking forward King Mohammed VI (centre), his son Prince Moulay Hassan (left), his wife Princess Salma (right) — Fadel Senna/AFP/Getty Images are periodically placed before it by to exercising extra powers that come Morocco’s “deep state” to contain its Page 4 into force at the beginning of the year areresponsibleforourdecisionsandwe Stabilityhasbeenhelpedbyaprocessof largestpartyinparliament. growth. A decision last month from the and form part of another reform — the areheldaccountable.” cautious co-operation between the “The situation is that there is a very finance ministry to bypass Mr Ben- A pragmatic approach devolution of decision-making to local Reforms initiated and controlled by monarch and the moderate Islamists of slow political reform process with posi- kirane and give control of a $5bn invest- elected councils that can now set budg- King Mohammed to defuse protests in thePJDheadedbyAbdelilahBenkirane, tive and negative fluctuations,” said ment programme to develop the coun- The Islamist prime etsandauthorisespending. the wake of revolts in Tunisia, Egypt the prime minister, who has led a coali- Mohammed Masbah, non-resident tryside to the agriculture minister, a minister is careful to “In the past, local councils voted on and Libya have allowed Morocco to tiongovernmentsinceelectionsin2011. scholar at the Carnegie member of another party close to the co-operate with the budget, but the Wali [the governor escapetheupheavalsthathavetroubled The poll came after the adoption of a Center. palace, was seen as an attempt by ruling appointed by the King] had to sign on other countries in the region, blighting constitution that requires the king to “However, the general trend is posi- circlestoclipthewingsofthePJD. the monarchy the spending,”says Mr Sadiki. “Now we economiesandevenleadingtocivilwar. choose the prime minister from the tive. For example, the new constitution Continuedonpage2 Page 5 2 ★ FINANCIALTIMES Tuesday 24 November 2015 Doing Business in Morocco Start-ups seek strength in numbers to woo funders King’s carefully Technology broadcasts health messages in doctors’ meet entrepreneurs and have all the whether the idea is good — or crap!” Council, the UK educational and cul- waitingrooms. tools I needed — mentors, networks, laughsMrSebti. turalcharity. managed A dearth of investors is the “In , the UK and other western everything,” she says. “But here in Ms Biaz’s difficulties in setting up In three years Ms Biaz has gathered countries there is a generation of entre- Morocco in 2012 it was a desert. People NWLmirroredthosefacedbytheentre- 6,000 people at the events she has transition biggest challenge facing the preneurs, mainly in the web, who suc- barely knew what the word start-up preneurs she nurtures. With few struc- organised and is associated with some country’s nascent digital ceeded and are giving back [by invest- meant.” tures available to provide financial sup- 100 entrepreneurs. Thirty companies economy, says Siona Jenkins ing]. We don’t yet have these successful Discussions like these are part of the port to start-ups, she invested her own havebeenformedatNWL’spremises. people who have this mindset,” adds company’s mission to create a space money, calculating that it would be at As Morocco’s entrepreneurial net- Continuedfrompage1 Fleur-Eve Le Foll, whose company where entrepreneurs can share ideas least two years before she began to see a work slowly grows, NWL is making con- Like other Arab countries where On a drizzly autumn evening in Casa- Maker Mind developed Cod Cod Codet, and experiences, and meet potential return. nections further afield. Ms Biaz has her Islamists have emerged as political blanca, a group of young technology aprogrammetoteachchildrencoding. investors. Networking functions, inspi- “The period from the ‘idea’ stage to sights set on ’sthriving tech scene forces, there is considerable polarisa- entrepreneurs debate the challenges of Moderating the discussion is the actually making your first sales is very, andisplanningaworkshopcalled“Hello tion in Morocco between secular seg- building a business in Morocco. Seated evening’s host, Fatim-Zahra Biaz, an verylong—longerthaninEuropeorthe Africa” before the end of the year. “We ments in society,often urban elites, and around a ping-pong table in a cheery energetic 33-year-old many credit with US,”shesays. tendtolookwestandwe’veforgottenthe the more conservative and religiously- third-floor apartment they are, by their helping to nurture the entrepreneur- ‘In Morocco in 2012 it was a She has the support of companies and challenges we have are here [in Africa] minded. The difference, however, is the own admission, pioneers in the coun- ship scene in Morocco’sbusiness capital desert. People barely knew organisationsthat“understandtheben- andourmarketishere,”shesays. PJD avoided pushing a religious agenda try’snascentstart-upscene. through her start-up New Work Lab. efit” of a thriving start-up network, and She is also trying to encourage female or raising controversial issues such as Betweensipsofmintteathegrouphas Part co-working space for entrepre- what start-up meant’ that are keen to foster the country’sdig- entrepreneurs and this year launched the application of Islamic sharia law, alivelydiscussiontouchingonthereluc- neurs, part collaboration hub and part italeconomy. the Moroccan chapter of Girls in Tech, a whichwouldhavefuelleddivision. tance of local backers to invest in entre- entrepreneurship champion, the com- rational talks and events such as pitch- These include telecoms operator start-up support group founded in Cali- “We consider sharia to be much preneurship and the need for more panyprovidesafocusforlocalstart-ups. ing competitions, where entrepreneurs , and the OCP Foundation, the phil- fornia. She now offers training and broader than what others think,” says institutionalsupport—aproblemacross A Casablanca native who worked in try out their funding pitches on each anthropic arm of Moroccan phosphates workshopstohelpdeveloptheirskills. Saad Dine Elotmani, a PJD leader who the region, where entrepreneurs strug- Franceasamanagementconsultant,Ms other,helpstart-upshonetheirskills. giant OCP, which is one of the country’s “This is the right time to be in the served as foreign minister in Mr gletofindfinancing. Biaz says she came up with the idea for “We’dneverheardofstandinginfront most active funders of start-up initia- start-up business in Morocco,” says Mr Benkirane’s first government (before “We can count on two hands the NWL after noticing there were almost ofagroupofstrangersandpitchingyour tives. Sebti,whocreditsNWLwithgalvanising the withdrawal of one ruling party number of people who want to invest nosupportsystemsforentrepreneursin ideas in a formatted way for five or 10 Other revenue comes from renting thecountry’sstart-upscene. in 2013 led to the formation of a new in entrepreneurship here in Morocco,” Morocco. minutes, but it structures the way you out work spaces at the NWL apartment “Oneofuswillmakeit.Ormaybetwo coalition). says Amine Sebti, who is developing “In France I found myself in a very present your company, and you get a and through partnerships with other or three will. If we have one or two huge “It is primarily asserting the dignity a , SanTév, that exciting environment, where I could return from your audience telling you organisations, including the British successstories,wecanallfeedoffthat.” and rights of people; it is reforming the judicial system to make justice a reality; it is reforming public affairs to make them more transparent and in the serv- iceofcitizens,”headds. Morocco has secured enough political consensus to allow it the breathing The letter from space it needs to tackle a list of socio- economic challenges — poor education, poverty, low-productivity and unem- ployment which stands nationally at 8.7 per cent. This is higher among the the king that urbanyoungandtheeducated,reaching 40 and 20 per cent respectively accord- ingtotheWorldBank. Thekingdomhasbeendiversifyingits boosted drive for economy and attracting western inves- tors in the offshoring, automotive and aerospace industries in search of a low- costbasenearEurope.Supportedbythe king and government, Moroccan busi- greener energy nesses have also been expanding in Africa to make up for slow growth at home partly as a result of the economic woes of Europe, the country’s main tradeandinvestmentpartner. Karim Tazi, head of Richbond, an industrial and real estate group, says cutting bureaucracy and corruption deterring investors would improve the Renewables Strategy’s ambitious targets are being climate for small and medium enter- prises. met and may even lead to exports, says Siona Jenkins “Moroccan private sector investment remains weak,” he says. “Automotives, n unusual sight greets It had to provide a concrete solution to Mirror, mirror: essentially broke the state utility’s Moroccan state, Masen agreed a price aeronautics and offshoring are three observant visitors to Casa- theenergyproblemswefaced.” Noor is the monopoly of energy production. By for its energy with the state utility and islands of growth in an ocean of non- blanca’s Mohammed V air- Morocco is the only north African world’s biggest allowing private investors to produce contracted to pay the market price to growth because Moroccan entrepre- port. Red numbers light up country that has virtually no fossil fuel plant of its kind energy from renewable sources, “the the project developer. Any difference neurshavelostinterestinrisk-taking.” A on a hoarding high on the resources. By 2009 it imported 97 per AP lawwascrucialinallowingforthedevel- between the two prices would be met But Morocco has also earned praise wall, changing constantly. A closer look cent of its energy needs, at a cost to the opmentofrenewablesinMorocco”,says by the government, which serves as from the International Monetary Fund showsthefiguresaretrackingthebuild- state of Dh62bn ($6.2bn) a year. With Anne Lapierre, head of energy for guarantor. for bringing its public finances under ing’s energy consumption — how much electricity demand growing at 5-6 per Europe, the Middle East and Africa at Analysts have described the funding control and sticking to deficit targets. is generated by the solar panels on the cent annually, the country needed to NortonRoseFulbright,alawfirm. model as a game-changer. “With this Savings as a result of the abolition of roofandtheCO2 emissionssaved. doubleitsenergycapacityby2020. Anotherpillarofthenewstrategywas marketlogicwebrokethebackofclassi- energy subsidies, says Abdellatif The digital readout hints at Morocco’s A catalyst for meeting that challenge the creation of two new institutions to cal project finance but in a way that has Jouahri, governor of the Central Bank commitment to renewable energy. At came in 2009 with a letter from King work in tandem with the state utility. been accepted by donors,”says Masen’s meant “the authorities gained signifi- theotherendofthescale—andperhaps Mohammed VI, asking for priority to be The first, Aderee, was established to MrBakkoury. cant scope for investment and the rein- a more fitting symbol of the country’s given to renewables and energy effi- oversee renewable energy development Masen also took a risk by investing in forcementofsafetynetsforthepoor”. ambitions — is Noor, the world’sbiggest ciency. The high-level push galvanised and implement an energy efficiency CSP. “Morocco made a big bet on the He singled out educational and judi- concentratedsolarpower(CSP)plant. policymakers,whosetanambitioustar- programme. It has already had success technology and the tariffs,” says cial reform, as well as improvements to This technology generates power getofgenerating42percentofthecoun- in pushing big consumers in the indus- AbdeslamAbabou,managingpartnerat labour regulations as crucial steps to usingmirrorsorlensestofocusthesun’s try’s energy by renewables by 2020: trial sector to develop their own wind Red Med Finance, a partner with Saudi improvethebusinessclimateandcreate energy and allows electricity to be 2GW by solar power, 2GW by wind and parks,forexample. Arabia’sACWAPowerinNoor. jobs. stored. Unlike the cheaper photovolta- 2GWbyhydro. “Becausewehavethisverygoodwind “At the time we were expecting the Partly thanks to rain that has boosted ics that are commonly used domesti- The strategy was a gamble. “Morocco regime, we are already in grid parity price to be very high . . . it was a very agricultural output, the IMF expects cally, this technology is expensive and isnotabiggreenhousegasemitter,sowe [the point when renewable energy costs courageousdecision.” growth this year to reach 4.7 per cent needsspaceforstorage. had a debate about why we should go to the same as traditional energy The country is on track to meet or before easing back to 3 per cent in 2016. Covering a 3,000ha site in the desert more expensive energy,” says Said sources],”saysMrMouline. even exceed its solar and other renewa- “Notwithstanding a respectable eco- near the southern town of Ouarzazate, Mouline, director of the agency for the Masen, the second institution estab- ‘Morocco ble targets, and is developing its own nomic performance, the economy has Noor (which means light) will eventu- development of renewable energies and lished in 2009, was charged with devel- made a big industry to serve the sector. Around 30 remained structurally oriented toward ally generate 500MW of power. In the energyefficiency(Aderee). oping the solar sector. At the time, solar percentofthepartsneededforNoorare non-tradable activities (such as con- first phase, Noor I, some 500,000 mir- The growing competitiveness of energy was usually based on feed-in bet on the beingmanufactureddomestically. struction, public works and low-value rors will reflect the sun to generate renewable technology, the need for tariffs, where a set payment is made technology “The idea is to go beyond 2020, and added services) and volatile, weakly- 160MW of electricity. It was due to go energy independence and the potential to entities generating electricity by thiswillinterestmoreinvestorsinterna- productive agriculture,” said the World live this month and phases II and III are for job creation and development in renewables. and tariffs tionally,”saysMrBakkoury. Bank in September. Morocco’s main alreadyunderdevelopment. poorregions,whererenewablesprojects Considering this to be too expensive, . . . a very “We are working to create the condi- challenge is to turn its advantages of “Noor is a reference point,”says Mus- could be located, convinced policymak- Masen decided to create a competitive tions for future exports. Wemay be able “political stability, proximity to Europe tapha Bakkoury, head of the Moroccan ersitwasworththerisk,hesays. financing model. With the investment courageous to export components in the future, but and relative investment attractiveness Agency for Solar Energy (Masen). “Our Key pieces of legislation underpinned ofmultilateralorganisationssuchasthe decision’ also electricity through the grid to into a decisive edge for rapid and inclu- first[solar]projecthadtobelargescale. the new policy. Law 13 of 2009 World Bank and the support of the Europe.” siveeconomiccatchingup”.

Contributors A fledgling sector spreads its wings to fly higher Heba Saleh North Africa correspondent

Siona Jenkins Aeronautics exported €70m of products last year. It “There are 35,000 aircraft to be built training. It is strategic for Morocco to Middle East and Africa news editor is currently in “the last phase of a plan” globally over the next 20 years. Today add capacity and education to allow us toincreasecapacitybyadding300more Morocco is the place to be if you want to toaddmorevalue. Aida Alami Proximity to Europe and workers and expanding the factory by penetrate Europe at the best cost. Ten “We are now attracting sister indus- Ursula Lindsey low labour costs help the 50 per cent, says Mr Errahmani. “There years ago companies were in eastern tries like security, defence, composite Paul Schemm industry to be competitive, is more turnover and more activities, so Europe and Ireland, but since these materials and research and technology. Freelance journalists ourpartnerswanttoinvestmore.” countries joined the EU, they have These are the industries of globalisation reports Heba Saleh Matis is part of a growing aeronautics becomelessandlesscompetitive.” thatwillallowyoungMoroccanstohave sector in Morocco that takes advantage There are 100 international compa- another way of development and build- Linda Anderson Abdelghani Errahmani, president of of its low labour costs and proximity to nies in Morocco, including Bombardier, ingtheirfuture.” Commissioning editor Matis Aerospace, strides down the cen- Europe to supply components to manu- Alcoa and Stelia, a subsidiary of Airbus, Almost half the space of the first tral aisle of the vast factory floor and facturersthereandtheUS. with investments collectively worth up phase of the Aerospace Industrial Park, Steven Bird pointstothelongrowsofbenchesonhis The industry, which employs 11,500 to $800m he says. Two-thirds of these a public-private partnership inaugu- Designer left and right where some 900 workers people and last year achieved exports areaddingcapacityforexpansion. rated in September 2013, has already assemble complicated wire bundles for worth $1bn, has been growing at 15 per An aeronautics institute, the Institut been taken up, says Aref Hassani, man- Andy Mears theaircraftindustry. cent a year, according to industry offi- des Métiers de L’Aéronautique, set up aging director of Midparc, the company Picture editor “See,ononesideyouhaveBoeingand cials. The aim is to reach 23,000 jobs by jointlybytheprivatesector,withFrance thatdevelopedthepark. on the other Airbus,” he says jokingly. 2020, increase exports to $1.6bn per which gave a long-term loan, and the “Aeronautics has been driving this, For advertising details, contact: “Thebiggestcompetitorsintheworldof year and increase to 35 per cent the pro- Moroccan government which provided followed by electronics,” says Mr Has- Omar Alaoui, +212 6 6146 0061 aeroplane manufacture are only 2m portion of locally-produced compo- the building, is training workers for the sani. “Out of the five large-scale invest- [email protected], or Larry Kenney, aparthere.” nents, in what are mostly products industry. ments we have so far, four are from +44 207 873 4835, [email protected] Matis is a joint venture between Boe- assembledfromimportedparts. “Now after four years of operations North America and one from France,” ingandSafranofFrancetoproducewire Hamid Benbrahim El-Andaloussi, we are in the process of doubling capac- hesays. All editorial content in this report is bundles and harnesses for the biggest president of Gimas, a grouping of ity from the current 600 trainees,”says With investments worth €100m so produced by the FT. names in aircraft manufacture, includ- Moroccan private-sector companies MrBenbrahim. far,hesays:“Weareatthebeginningbut Our advertisers have no influence over or ing Boeing, Airbus, Dassault and working in aeronautics, says Morocco’s Staff at Matis Aerospace prepare “All have a job when they get their we expect to start expansion of the park prior sight of the articles. Snecma. Established in 2001, Matis futureintheindustryispromising. aircraft components certificate after four to eight months of becausethereisrealdemand.” Tuesday 24 November 2015 ★ FINANCIALTIMES 3 Doing Business in Morocco Tourism suffers as terrorism abroad makes visitors wary

Travel Latest news from the key French market is likely only to hasten slowdown, writes Heba Saleh

he guests at Riad Adriana, a Officials and tourism operators say small hotel in a converted growth in the sector has been affected traditionalcourtyardhouse by a perception of threat and tourist in , take their numbersandreceiptsareweakening. T breakfast on a sunny roof “Since mid-2014 with the appearance terrace full of flowers and sleep in beds of Isis and then with the two attacks in strewnwithrosepetals. Tunisia, and with the Charlie Hebdo The hotel has only seven rooms, but attack in France [in January], we have Malanie Sueur, the owner, says it was a seen a dwindling of the number of tour- struggle to fill them over the summer ists,” said Lahcen Haddad, the tourism following June’sterror attack that killed minister, speaking before the Novem- 38 tourists on a beach in Sousse in Tuni- ber13assaultonParis. sia — a country with which Morocco “It is not highly significant in the doesnotevenshareaborder. overall picture, but very important for The latest killings in Paris, 2,500km theFrenchmarket,wherewehadadrop away and an important source of tour- startinginmid-2014—anditisstillhap- ists for Morocco, are likely only to make pening.” life more difficult. “Wehad to halve our Tourism had its best year in 2013 pricesinJulyandAugust,butsincethen when it increased 7.2 per cent, he says. A tough ride: smallermarketsthanFranceandSpain. ents are afraid.” Many tourists travel growth in Europe slowed following the it has been good,”Ms Sueur said, before The pace of growth initially continued tourist numbers “We don’t have hotels closing, but we independently, without a travel com- financialcrisisof2008. theParisattacks. in 2014, when the increase in the first may fall away don’t have 80 per cent occupancy,” he pany,anduseAirbnbtobookrooms. MrAlamisaysatargettodoubletour- “I don’t know, though, if the problem eight months was 8 per cent, but the Alamy says. “Occupancy is around 45 per cent “The economic crisis in Europe is the ist numbers again by 2020 will take is over. People are still afraid. I had a appearance of Isis in Syria and Iraq cast in general, though different places suf- reason why they come on low-cost air- longer to reach given conditions in the French guest with a pregnant wife tell a shadow over the entire region and the fer more than others. Marrakesh is not linesandmakearrangementswithlocal region, although this remains “a good me that when they said they were com- year ended with a mere 2 per cent sufferingmuchnow.” taxi drivers, and don’t come through marketingvision”. ingtoMorocco,hisfamilysaid,‘Don’tgo increaseintourismover2013. Last year 10.3m tourists visited agencieslikeus,”hesays. In Marrakesh, Aly Horma, UK honor- — they have attacks there’.But we don’t This year, says Mr Haddad, there has Morocco and brought in $6bn, accord- Tourist numbers in Morocco have ary consul, confirms that the city has haveattackshere.” been a 15 per cent fall in the number of ing to ministry figures. But Othman more than doubled since 2000, when been receiving increasing numbers of Except for one attack against tourists tourists from France, Morocco’s biggest Cherif Alami, head of Atlas Voyages, only 4.2m people visited the country. ‘We don’t British tourists, arriving on 12 flights a in 2011 in Marrakesh — the kingdom’s travel market, which provided almost Morocco’s largest travel agency, says The industry was boosted by an open- week. biggest tourism centre — Morocco has 1.8m visitors last year. French tourists tourists in Morocco are now spending skies agreement with Europe in 2005 have hotels Mr Horma, who is also an entrepre- beencalmforthepastdecade. coming through travel agencies have 10-15 per cent less than in previous that removed limits on EU flights to closing, but neur and president of the Marrakesh Nonetheless, the importance of tour- declined30percent. years. Moroccanairports. Grand Prix motor-racing event, says ism, which last year accounted for 12 Overall,however,MrHaddadexpects “We had to make the country attrac- The increase in arrivals was also occupancy “the jet-set crowd has been coming percentofGDP,meanstheeconomyhas visitor numbers to decline by only 1 or 2 tive so we have had to drop rates,” he helpedbyagovernmentdrivetoexpand is around more frequently”, with the opening of been affected by the resurgence of vio- percentthisyear. says. “Hotel management reduced beach tourism through the develop- severalfive-starpropertiesrecently. lence in the surrounding region since He points out that travellers from prices by 7 per cent net. After Sousse, ment of resorts on both the Atlantic and 45 per cent “Famous people”, he adds, are also the emergence of Isis, the Islamist Britain and Germany are increasing, French agencies have been reducing Mediterranean coastlines. Not all in general’ becoming resident in Morocco for tax group,in2014. although these countries represent their business to the region because cli- resorts were developed as planned after purposes,“toescapeEurope”. Casablanca hopes to build the gateway to markets across Africa

Financial hub The new centre is aimed at professional services and companies looking for international headquarters, writes Siona Jenkins

Casablanca’sAnfa Airport is an unlikely symbol of Morocco’s ambitions in Africa.Oncesynonymouswiththeearly glamour of air travel, its disused termi- nal now presides over scrubland. But hiddenbeneaththeformertaxiwaysare Wide horizons: Casablanca hopes to become a financial hub — Dreamstime newly installed fibre optic cables and the infrastructure needed for a finance ($1.18bn) in 2013. By 2014, some 88 per national and local consulting firms, hub that policymakers say will be an cent of Moroccan foreign direct invest- including Boston Consulting. Some will emblemofthecountry’spushsouth. ment was on the African continent, be moving their African headquarters Morocco traditionally looked to accordingtoministryoffinancefigures. fromParisorBahraintoCasablanca. Europe for business and trade, but the “WhiletheGDPs[inAfrica]aresmall, “Wearegainingmomentum,”saysMr financial crisis and weak European the growth is there,”says Said Ibrahimi, Ibrahimi. He hopes the CFC will con- growth hit the country hard and helped chief executive of Casablanca Finance tribute1.5-2percenttoMoroccanGDP. propel its companies and policymakers City Authority. “In Europe you’re talk- Businesses with CFC status say estab- towardshighergrowthfurthersouth. ing about 1.5 per cent on average. In lishingthehubisgoodforthecountry. “WeareclosetoEuropeandyetweare African countries, it’s an average 5 per However, the initiative faces chal- in Africa. We have a good financial sec- centayear.” lenges. The country has to work hard to tor, good technology, an airline that Policymakers hope to build on this convince anglophone companies that links us to African cities. There are progress by building Casablanca they can do business in francophone many reasons for us to expand into FinanceCity(CFC),anAfricanfinancial Africa. There is also a shortage of vehi- Africa,” says Nadia Fettah Aloui, man- hub in Morocco’s commercial capital. cles for investment in African compa- aging director at Moroccan insurer Although aimed primarily at financial nies,slowingthegrowthofbusinessesin SahamFinance. and professional services doing busi- theregion. Several Moroccan corporations ness in Africa, it will also cater to com- “Africa is not on the same scale as already have a solid presence in Africa. panies looking for international and Dubai, says Mehdi el-Idrissi, partner at Royal Air Maroc, the national carrier, regionalheadquarters. Eurosearch & Associes, a management has the most extensive airline network “We noticed international investors consultancy that specialises in recruit- on the continent and flies to 32 cities in do not access [Africa’s] opportunities ingforMorocco-basedcompaniesdoing 26 African countries from its Casa- easily,”saysMrIbrahimi. businessinAfrica. blancahub. “It is very important for a growing CFC companies also complain that, bought its first sub- economy to get close to a financial cen- even with their exemptions, Morocco’s Saharan African subsidiary in Maurita- tre. Morocco is very well positioned to currency controls add bureaucracy and nia in 2001, and now has nearly 51m play the role of a financial centre and at complications to financial transactions. subscribersandsixAfricansubsidiaries. the same time a gateway to the African Itisunclearhowsoonthismightchange. Phosphates giant Office Chérifien des continent, at least to north-west and “There is an idea we have been working Phosphates Group (OCP) has also centralAfrica.” on for a long time to introduce more expanded south and is targeting under- Companies eligible for CFC status will flexibility in the exchange rate, but it served African fertiliser markets, partly be able to set up under streamlined pro- would be gradual,” says Mohammed through a hub at Jorf Lasfar port, south cedures that allow them to keep their Boussaid,thefinanceminister. ofCasablanca. own shares, give them repatriation At Anfa airfield, a large hole marks Saham began its expansion into of dividends and capital gains and the place where the CFC Authority’s Africa in 2010 and now has businesses exemption from currency exchange headquarters will anchor the district in 23 African countries. “Most of our restrictions. Work and resident permits that will bring many CFC companies businesses have double-digit growth, for expatriate staff will also be easier to into physical proximity with one althoughthematureonesaregrowingat obtain. another. around 5-6 per cent a year,” says Ms So far 87 foreign companies have The building aims to make an archi- Fettah Aloui. The company plans to tri- signed up to the scheme, and the tectural statement about the city’s pleitsrevenueinfiveyears. authority hopes to have 100 by the end ambitions, says Moncef Kabbaj, CFC’s It is a potentially fertile market for of the year. They include international real estate manager, who is overseeing Morocco: its exports to Africa jumped law firms, such as Clifford Chance the project. “It will be a symbol of from Dh2.2bn in 2003 to Dh11.7bn and Baker Mackenzie, as well as inter- progress.” 4 ★ FINANCIALTIMES Tuesday 24 November 2015 Doing Business in Morocco

Film The spotlight shines on the Marrakesh festival

In a mere 15 years, Mélita parade of Moroccan and Toscan du Plantier, director of international celebrities. The the International Film Festival festival will also include the of Marrakesh, has created one Cinécoles short film of the most acclaimed film competition, which events in Africa and the encourages fledgling Arab world. Moroccan film-makers. “It’s a tolerant, uncensored More than 38,000 people are festival that is a bridge expected to attend. between the west and the Mrs Toscan du Plantier east,” she said in a recent hoped recent terrorist events interview in Rabat. would not dissuade people The festival director, who from attending. “People who stepped in after the death in don’t know Morocco can be 2003 of her husband, scared, sometimes irrationally producer Daniel Toscan du so,” she said. Plantier, has fought She faces a further obstacle. continuously to ensure the Many in the country believe festival’s existence amid the such a prestigious festival region’s political turmoil. should be run by someone of Mrs Toscan du Plantier Moroccan nationality. founded the festival with her However, Mrs Toscan du husband in 2001, two weeks Plantier’s defenders argue after the 9/11 attacks. that few others could lure That first year, they decided such well-known names and to go ahead with the event attract the media, while despite mass cancellations of also serving as a cultural appearances by US artists. ambassador for Morocco. She recalls spending two “The personalities we weeks contacting her French invite become our best colleagues, who were less ambassadors,” said Mrs wary of travelling to the north Toscan du Plantier. “Scorsese African country. still raves about the festival.” “Cancelling it would have As well as putting been letting the terrorists get Marrakesh and Morocco in the what they wanted,” she said. spotlight the festival is a Since then, attendees have popular domestic event. included Martin Scorsese, the Many Moroccans also hope director, and actors John that it will stimulate a film Learning curve: this year nearly 700,000 students enrolled in universities, almost a 10 per cent increase over the previous year — Alamy Malkovich and Leonardo industry in the north African DiCaprio. Francis Ford kingdom. Coppola, the director, who has Sarim Fassi Fihri, director attended twice, will preside of the Moroccan over the jury this year. He has Cinematographic Centre, the Private colleges aim to fill gap between previously described the state regulatory agency for festival as a “sumptuous the film industry, says it is celebration of film”. time for Morocco to create a Mrs Toscan du Plantier is domestic film industry, which the daughter of Serbian would in turn lead to an higher education and job market immigrants and was born in increase in the number of Le Havre in northern France. cinemas and attract more She met her future husband in distributors. Schooling The public system is seen by many to be failing but remains resistant to reform, writes Ursula Lindsey 1995 when he was president Morocco has seen a sharp of the Césars (France’s decline in the number of national film awards) and of cinemas — only 39 remain — tistheendofthedayattheInterna- enrolment. This year nearly 700,000 universities’ main investors. However, Yassamine, the biggest network of pri- uniFrance, an organisation from 250 in the 1980s. tional University of Rabat (UR), studentsenrolledinuniversity,almosta the institutions are private and inde- vate schools in the country. The plan is that promotes French cinema “Piracy is not the only locatedinanewtechnologyparkon 10 per cent increase over the previous pendent, which allows them to set their to expand from 6,000 students to as around the world. problem that’s slowing the outskirts of the Moroccan capi- year and up from 433,000 in 2010. own admission standards, hiring crite- many as 50,000, opening schools in half Following Toscan du down the industry,” he says. I tal. The rays of the setting sun glint Manywilldropout.Evenasthenumber ria and curricula. Other examples adozenmorecities. Plantier’s death, King “The geography has changed. off a solar panel that doubles as a cov- of students has grown, resources and include two new medical schools and “You need to think about employabil- Mohammed VI of Morocco Theatres used to be in the ered walkway and provides a quarter of teaching approaches have not kept the still-under-development Moham- itystartinginmiddleschool,notuniver- decided that Mrs Toscan du city centres, but new thecampus’energyneeds. pace. The government has announced med VI Polytechnic University, a sity,”says Ahmed Benyahia, chief exec- Plantier should continue to neighbourhoods have been UR was built in 2010. Its Dh1.2bn one reform plan after another but little research university that will focus on utiveatYassamine. run the festival. created and populations campus is home to 2,500 students and has improved in practice, partly mining,chemistry,sustainabledevelop- While the state struggles to imple- For this year’s festival — moved.” should hold twice that many by 2020. because teachers and professors, who ment and industrial management. Its ment its long-range reform plans, “the the 15th — films will be Mr Fassi Fihri is confident, Most of the university’s professors are viewlecturingastheirmainresponsibil- campus, located near the city of Ben private sector can make the connection screened in different theatres however, that given time — recruited from the Moroccan diaspora ity, balk at being held to new standards Guerir, is funded by OCP, Morocco’s between a 12-year-old student and the in Marrakesh and on the city’s and the growing international and UR’s programme and laboratories oradoptingdifferentteachingmethods. largest industrial corporation, which job market,”says Mr Benyahia. He says main square, Djemaa el Fna. focus on the festival — aredesignedinpartnershipwithforeign A quarter of the national budget is hasphosphateminesinthearea. hisschoolsfocusoncultivatingbilingual The nine-day event, from Morocco’s film industry will universities and industries investing in spent on education, the vast majority of UR and the public Mohammed V Uni- or trilingual students with strong com- December 4—12, costs revive. Morocco. The institution is a new that on staff salaries. There is a shortage versity in Rabat are partners in an auto- munication skills. At the university roughly €7m, according to “A lot of countries went model, one of several would-be “centres of teachers, especially in rural areas, motive design lab with PSA Peugeot Cit- level, the focus at for-pay institutions is the organisers. through similar crises and of excellence” conceived as shortcuts to and 28 per cent of Moroccans over the roën, which will open a factory in on soft skills and internationalisation. It will screen dozens of succeeded in saving their film change in an educational system that is ageof10areilliterate. Morocco in 2019. The university offers Englishcoursesarealsoontherise. films, host master classes and industry,” he adds. failing,butresistanttoreform. Observers say graduates arrive in the degrees in renewable energy, aerospace In 2013-2014, more than 35,000 stu- hold the usual red carpet Aida Alami UR is a “model that has proven itself job market lacking basic communica- engineering and automotive engineer- dents attended private universities. Mr. and could be duplicated elsewhere” in tion and critical thinking skills. “The ing — fields that match growing eco- Abdellaouipredictsthattheprivateuni- Morocco, says Mohamed Abdellaoui, fate of most humanities and law stu- nomicsectorsinthecountry. versity sector is going to develop dra- the university’s vice-president for gen- dents is unemployment,” said Lahcen Morocco is one of the most stable matically in the next 10-15 years. The eralaffairs. Daoudi, the minister of higher educa- countries in north Africa. It is an attrac- government has said it would like it to “The government is unable to intro- tion,lastmonth. tive destination for western students absorbatleast20percentofdemand. duce change in the public system so it’s Butthegapbetweenhighereducation interested in the Arab world, as well as However, many believe the growth of been compelled to find another solu- and the job market “isn’t a question of ‘It’s easier to for African students from neighbouring the private sector has come at the tion,” says Abdelilah Kamal, the direc- degrees,” says Mr Kamal, “but of the countries. The private educational sec- expense of public schools and has tor of finance and administration at overallqualityofeducation”. start small, tor is growing at the primary and sec- entrenchedinequality. Rabat’s Ecole de Gouvernance et The new universities in Rabat charge new ondary level as well. In the period from MrAbdellaouiacceptsthereisaprob- d’Economie (EGE), another new school tuition fees (starting at $7,000 a year at 2006-7 to 2013-14, the number of stu- lemwhenitcomestostudents’abilityto in the capital. “It’s easier to start small, UR) but have been created in partner- universities dents in private schools doubled to financetheirstudies.Ifprivateuniversi- new universities than to reform the big ship with the state and offer scholar- than to 972,822. ties are to grow, he says, there should be ones,”hesays. ships to talented, needy students. In In September, TPG/Satya, a fund student loans and tax credits for fami- Morocco’s public education system, these arrangements, the state provides reform the created by TPG Growth and Satya liesthatpayforprivateeducation.URis like that of many Arab countries, has freepubliclandandnationalcompanies big ones’ Capital and focused on investment in creating its own fund from which to been overwhelmed by spiralling and foundations are some of the Africa, invested Dh250m in the Ecole grantfinancialaid,headds. Star gazers: the 2014 film festival — Didier Baverel/WireImage Underpaid and unskilled, women fall behind in the workplace

Gender equality according to the country’s statistics care of their families and also be proud over 200,000 new job seekers with less force. They need to be able to work agency, the High Commission of Plan- andvaluedattheirjobs.” than50,000jobs[available],”hesays. whileraisingtheirchildren.” ning.Manyearnlessthantheminimum The training is part of a slow revolu- Mr Lahlou accepts that Morocco is Stephanie Willman Bordat, a found- More training is needed wage of around $250 a month. Around tion that has been taking place in the leaving many women behind. The con- ing partner of Mobilising for Rights to increase the number of half of Moroccan women older than 15 countryoverthepastdecade. servativegovernment,ledbytheJustice Associates — a Rabat-based organisa- women in the labour areilliterate. In 2004, the government adopted andDevelopmentParty,hasnotencour- tionthatadvocatesforwomen’srights— Nora Fitzgerald, 35, a freelance trans- reforms to its Moroccan Family Code aged women to become more involved adds that sexual harassment is also a market, writes Aida Alami lator and founder of the Amal Center, that were hailed by women’s rights intheworkplace. problem in Moroccan business. Laws decided three years ago to empower organisations as a significant step for- “There is a need for better and more punishing perpetrators are weak and Moroccan women by teaching them to ward for the country. The amendments adequatetraining,andformorewomen discrimination needs to be outlawed, Standing at the entrance of the Amal cook. Following a six-month course, she redefined divorce and raised the mini- to be placed in unions and political par- shesays. Women’s Training Center, in the centre thenhelpsthemtofindjobs. mum legal age for marriage from 15 to tiesinordertoadvocatefortheirrights.” Khadija Rouissi, a member of the of Marrakesh, Hayat Aamer is thankful Her organisation, which first was cre- 18.In2011,thecountryalsoamendedits Last year, Prime Minister Abdelilah opposition Authenticity and Modernity shehasthechancetohaveacareer. constitution to uphold gender equality. Women tend to Benkirane caused outrage when he said Party and campaigns for gender equal- “I started at the bottom and worked Women have gained jobs in politics and be in low-paid women belong at home. “Women don’t ity, has been pushing for the govern- my way up,” says the 37-year-old, who government, but similar gains have yet employment even find time to get married, to be ment to uphold the equality guaranteed works at the non-profit culinary school ‘Women don’t even find tobemadeintheprivatesector. mothers or to educate their children,” bythe2011constitution. and restaurant as a cashier. “This place time to get married, to be “Women tend to be stuck with those he said. “Why don’t we embrace this “This government is making calls for hasgivenwomenlikemehopeforabet- long, hard, low-paying jobs,“ says Ms sacredstatusthatGodgavetowomen?” womentogobackhomewhenthecoun- terlife.” mothers or to educate their Fitzgerald. And in 2012, , the try badly needs its men and women to Opportunities to rise above entry- children’ The low number of women in the former minister of education, was develop itself,” she says. “Women need level jobs are scarce for unskilled workforce also reflects other general caught on camera telling a 12-year-old to be independent financially to stop womeninMorocco. ated with friends’ donations, recently economictrends,saysMehdiLahlou,an girltofindahusband. beingvictims.” Last month, the United Nations Com- won the Orange Foundation’s Women economistandprofessoratthe “These politicians encourage men At the Amal Center, where tourists mitteeonEconomic,SocialandCultural for Change prize of €25,000. The centre National Institute of Statistics and at the same time discourage and locals enjoy Moroccan and interna- Rights expressed concerns about the used the money to hold a two-week and Applied Economics in women to enter the same mar- tional food, Ms Fitzgerald hopes to wel- low participation of women in the training workshop to help women start Rabat. Unemployment is high ket,” says Mr Lahlou. comemorewomeninthefuture. Moroccan workforce and noted that companies,suchascateringbusinesses. and sectors that used to wel- “There needs to be easier “There is a Morocco with lots of edu- employedwomenoftenhold“morepre- “Weworkwithwomenwhomakeless come women, such as textiles, conditions, like better catedyoungwomenbutalsoawholepart cariousandlesspaidjobs”thanmen. than the minimum wage and worked are among the most threat- laws regarding maternity that we don’t see,” she says. “The idea is Women make up for less than 30 per within no legal framework,” she says. ened. leave, to integrate more to train women to be in control of their cent of the labour force in the country, “After their training here, they can take “Every year there are women in the labour lives,toapplyforjobswithconfidence.” Tuesday 24 November 2015 ★ FINANCIALTIMES 5 Doing Business in Morocco Fiscal discipline and diversified economy pay dividends

Outlook Low commodity prices and abolishing fuel subsidies helped cut deficit, says Heba Saleh housands of medical stu- eracy, widespread corruption and large Good harvest: good harvest and the performance of has made significant progress,” says the Tanger Med port, which is key in dents and young doctors regional disparities, Morocco has been farmers gather a export-oriented economic sectors such Jason Tuvey, economist at Capital Eco- terms of logistics,”says Mehdi el-Idrissi, recently marched through working hard to diversify its economy, wheat crop astheautomotiveandaeronauticindus- nomics, the London-based consultancy, partner at Eurosearch & Associés, a Rabat, the Moroccan capi- bring its public finances under control Alamy tries,phosphatesandagribusiness. and author of a recent report, Five Rea- managementconsultancy. T tal, protesting against a law andimproveitsbusinessenvironment. “These external factors had a big role sons Why We’re Upbeat on the Outlook for “We now have parts manufacturers forcing young medical graduates to This year, the combination of excep- in reducing the balance of payments Morocco. that did not exist before. These are new serve in remote communities for two tionally good weather — which bene- deficit,” says Mr Boussaid, who adds Mr Tuvey points to the large strides businesses, which is why the govern- years without the promise of a fixed job fited the agricultural sector — and low that the country is working to modern- Morocco has made in automotive mentadoptedthelogicofpromotingthe attheend. international oil and commodity prices iseitsagriculturalsector. exportsandthecountry’ssuccessinset- creationofecosystemsforindustry.The “We are not opposed to working in has also helped the country achieve “In the past, if we had a dry year, we tingitselfupasamanufacturinghubfor parts makers are not working for remote villages, but it should not be budget deficit targets and reduce would get negative growth, but thank Renault and Peugeot, the French car- Renaultalone.Ford,forinstance,builds compulsoryanditshouldbefollowedby current account and balance of pay- God, because of improvements in agri- makers.Carshaveovertakentraditional its cars in Spain and just signed a deal to employment in the ministry of health,” mentsdeficits. culture and because of the added value goods, such as textiles, phosphates and getpartsfromMorocco.” says Mehdi Shenoufi, a doctor. “Wealso According to the IMF,the economy is provided by non-agricultural economic agriculture, to become Morocco’s larg- Inadditiontoitsvulnerabilitytofluc- want improved pay. Right now the sal- expectedtogrowby4.7percentin2015. activities, our development model is estsingleexportedgood,hesays. tuating weather, Morocco’s economy is aryisDh3,000($300),”amonth. The IMF also points out that poverty lessvulnerabletoweatherfluctuations.” In June PSA Peugeot Citroën hostage to regional developments and But the Moroccan government has rates, unemployment and inequality Some 40 per cent of Moroccans are announced a $630m investment to thehealthoftheeurozone,thecountry’s been tightening its purse strings to have declined over the past decade employed in agriculture and the sector build a plant in Kenitra capable of pro- main source of tourism, remittances achieve a targeted deficit of 4.3 per cent “though much remains to be done to is important to the economy. However, ducing 200,000 vehicles annually. from expatriate Moroccans and foreign of gross domestic product in 2015. The promoteamoreinclusivegrowth”. according to ministry figures, its share Renault already has two plants assem- ‘In the past if investments. countryhasrecentlyearnedpraisefrom Unemployment stood at 8.7 per cent of GDP has declined from 15.4 per cent bling vehicles for export to Europe and we had a dry The outlook for Morocco is not with- the International Monetary Fund for its in the second quarter of this year, in the 1990s to 11.6 per cent on average isliftingcapacityto400,000vehicles. out risks, comments Mr Tuvey in his fiscal discipline, the abolition of most according to Moroccan official figures, in the past five years. The IMF expects Thegovernmentalsowantstoexpand year we report. “Politicalproblemsintherestof fuel subsidies and its efforts to restruc- down from 9.3 per cent in the same GDPgrowthnextyeartocomeinat3per the auto industry by attracting parts would get north Africa could spill over into the ture its economy and place the country periodlastyear. cent “as agricultural activity returns to manufacturers and raising the propor- country. And Morocco would be hit if a onasustainablepath. , minister of normal”. tion of locally made components in negative fresh escalation of the eurozone debt Although it still faces serious socio- finance and the economy, says this “Theeconomyisbeinghelpedalotby exportedvehicles. growth’ crisis led to weaker growth and invest- economic challenges, such as high illit- year’s economic growth is due to both a a good harvest, but in general Morocco “Morocco is close to Europe and has mentflows,”hesays. A charismatic leader who acts with pragmatism and caution

elections in September, winning the Politics The Islamist most seats in the new regional councils prime minister has andtakingcontroloflocalcouncilsinall CV Abdelilah majorcities. been careful to avoid Benkirane The party’ssuccess is especially nota- antagonising the ble in light of its rather modest achieve- ments since coming to power. Although monarchy, writes , the man who it campaigned on sweeping social meas- Paul Schemm brought Islamists into mainstream ures to aid the poor and rooting out cor- Moroccan politics and one of the ruption,littlehasbeenachieved. most popular prime ministers in Reformsplannedbytheparty,includ- Abdelilah Benkirane, Morocco’s popu- decades, was a radical in his youth ing pensions, have been blocked in the lar Islamist prime minister, is well who opposed the monarchy. parliament. The PJD won a plurality in aware who is in charge of the country. Born in the capital Rabat in 1954, elections (107 seats out of 395), but it The King is an important symbol of sta- as a student he was a socialist. He rules in coalition with three other par- bility and continuity for the 32m-strong joined the radical Chabiba Islamiya ties, all of which have close ties to the population and so when the Islamists in 1976, a clandestine Islamist group monarchy, keeping it from making any were elected four years ago, they fol- that had earlier been implicated in significantchanges. lowed a policy of co-operation rather the assassination of a socialist The Islamists have had some success thanconfrontation. party leader. in achieving an austerity programme, “Mymotherwouldbefuriouswithme After graduation, he began following IMF warnings in 2011. The if I were to clash with the King,”said Mr teaching physics in 1979 but previous government spent heavily on Benkirane in an interview with the Ara- continued his activism and was raising salaries and subsidies to placate biya news channel last month, demon- arrested twice by police. The the population during the Arab Spring strating the jovial style that has made second time he was detained and and in 2012 Morocco’s budget deficit himsopopular. tortured for months. was running at 7.3 per cent of GDP with His cautious approach has borne Mr Benkirane subsequently $6bn spent annually on subsidies — 15 fruit: four years after elections in the distanced himself from the Chabiba per cent of public spending. Under Mr MiddleEastandnorthAfricaweredom- and in the 1980s founded a Benkirane, finances have been brought inated by Islamist parties, it is only in moderate Islamist group dedicated undercontrolandthebudgetdeficithas Morocco that one still leads the govern- to participating in politics and droppedto4.3percent. ment. Morocco’s Islamist Party of Jus- bringing together different Islamist But the party’s limitations are appar- tice and Development remains the head organisations. entintherealmofhumanrightsandthe of the coalition government, thanks to The movement won official fight against corruption — two of their its pragmatic approach to a political recognition in 1998 as the Party for campaign issues. Security is in the scene dominated by a 400-year-old Justice and Development. hands of the palace and the PJD has monarchy.Sincewinningthemostseats largely been silent, even as activists in the 2011 election, Mr Benkirane has complain of increased harassment of worked closely with other parties and journalistsandcriticsoftheregime. been careful to avoid antagonising the “Alas, little has changed in reality,” palace, even as he builds up his popular says , a journalist in support. He stands out for his ability to Morocco who now works for Human communicate easily with people in the Rights Watch. “Large-scale torture con- localdialect. tinued, as documented by the UN and The PJD has offered the image of a watchdogs, restrictions tightened on clean alternative in Moroccan politics rights groups, both domestic and inter- where most people believe politicians — national, and several journalists were as well as the elite in general — are cor- prosecutedandunfairlycondemned.” rupt. Abdelilah Now, after its recent success in local “What makes the PJD quite success- Benkirane elections, the party will be closely ful is first his [Mr Benkirane’s] rheto- involved in running the country’s larg- ric and how he communicates,” says est urban areas. But after years in oppo- Anouar Boukhars, an expert on sition,thePJDhasareputationforinex- north African politics at McDaniel perience when it comes to manage- CollegeinMaryland. ment. “People voted for them “Good intentions and integrity are because they think Benkirane not enough, because the cities — Casa- and the team are different and blanca, Rabat — are very difficult to theyreallywanttochange.” govern,” says Mr Boukhars. “It’s Working within the political either going to bury him, like hap- system, while attempting small reforms pened to other parties, or you are to aid lower income groups, has paid goingtoseeBenkiraneforthenext10 off for the party. It scored well in local years.” 6 ★ FINANCIALTIMES Tuesday 24 November 2015