Sponsored Report MOROCCO A ROLE MODEL FOR AFRICA MOROCCO Tanger Med port complex, the largest in Africa the major ports in Morocco, and taken part in the majority of key King Mohammed VI mega-projects in the Kingdom, from monuments and wind farms to tourist resorts. Joseph opens doors to Africa Roger Sahyoun, the company’s Chairman, credits the King with making the company’s ex- Moroccan players are now well placed to develop pansion possible, saying “His internationally, thanks to the unyielding commitment of His Majesty King Mohammed VI opened the doors to Africa for Majesty King Mohammed VI to the co-development of Africa us.” And in 2018, the King plans to further pick up the pace, with Since he came to the throne a member of the AU. Then, in his agenda for official visits to in 1999, Morocco’s King Mo- June 2017, Morocco applied to Africa even fuller than in 2017. hammed VI has made some 50 the Economic Community of In 2018, several major proj- visits to more than 25 African West African States (ECOW- King Mohammed VI of Morocco ects will see Moroccan invest- countries, signing around 1,000 AS) with positive reception; it ments in sub-Saharan Africa partnership agreements and had left the continental body bear fruit. However, the King- methodically establishing the in 1984. The Kingdom’s appli- was the leading African investor dom’s investments in this re- Kingdom of Morocco’s pres- cation to ECOWAS is a logical in terms of capital expenditure gion remain largely the preserve ence throughout Africa. His continuation of its return to in 2016 and now has the most of big groups, with home-grown objective: to strengthen the the AU; belonging to regional attractive business and invest- SMEs lagging behind when it country’s diplomatic, economic communities opens up essential ment climate on the continent, comes to making their mark on and trade relations with the rest channels through which a mem- according to Ernst & Young. the continent. But the King is fully aware that This may be partially due to “His Majesty King Mohammed VI opened the doors Morocco’s development has the fact that many Moroccan to Africa for us.” never been more dependent on SMEs are family-run and do Joseph Roger Sahyoun, Chairman, SOMAGEC that of the continent as a whole not easily mobilise the human and wants the Kingdom to be a and financial resources required key protagonist in pan-African to set up abroad and cope with of the continent, simultaneous- ber country’s relations with the structural projects. competitive pressures. Howev- ly transforming Morocco into a AU transit. Few Moroccan companies er, it is a reality that is deemed gateway to Africa. While culturally speaking know better about expanding “perfectly normal” by Mohamed In 2017, the King’s campaign- Morocco’s identity may be said into Africa than SOMAGEC Boussaid, Morocco’s Minister ing led to important milestones to align with Arab states, its (Société Maghrébine de Génie of Economy and Finance, who being achieved in Moroccan-Af- economic interests increasing- Civil), one of the first to do so stresses that public authorities rican relations. In January 2017, ly lie in Africa and the King is with moves into countries such are actively suporting SMEs the country was readmitted to backing moves to explore op- as Senegal and Equatorial Guin- through a framework of coop- the African Union (AU), three portunities in sectors from min- ea. Founded in 1966, it is the eration agreements and facili- decades after leaving the body’s ing and construction to med- largest construction company in tation measures with partner previous incarnation as the Or- icine, insurance and banking Maghreb, and one of the conti- countries, as well as through ganisation of African Unity. Pri- across the continent. Morocco nent’s most important civil-en- awareness-raising and network- or to rejoining, it was the only is no newcomer to the world of gineering firms. It has contrib- ing actions carried out by eco- country in Africa that was not heavy investing in Africa — it uted to the construction of all nomic development agencies. 1 FP PR Maro v7.indd 1 19/06/18 15:29 MOROCCO A ROLE MODEL FOR AFRICA Sponsored Report SOMAGEC: A case study for Moroccan companies seeking to expand in Africa Chairman of Moroccan infrastructure expert SOMAGEC, Joseph Roger Sahyoun, says financing is the major hurdle for Moroccan companies eager to operate across the continent PR To what do you attribute the cheaper. But our real challenge was company’s success in becoming to earn the trust of the state, which a Moroccan leader in the con- we achieved over time by building a struction sector? solid reputation in the very complex JRS Our company SOMAGEC (So- maritime sector where we became the ciété Maghrébine de Génie Civil) grew leader. in tandem with the country’s economy and infrastructure. Foreign companies PR In 2005, you created your fed this growth and gave us the means subsidiary in Equatorial Guinea. and tools to develop. At that point in How did you manage to conquer time, the state put all its trust in them, the African market? making it hard for Moroccan compa- JRS Morocco was our launch- nies to gain a foothold and do business pad and our testing ground. The first Tarfaya wind farm, on the Atlantic coast with the government. The categorical country we expanded into was Sene- refusal of foreign companies to operate gal where it quickly became apparent on a level playing field with us meant that we were 25 to 30% cheaper than Moroccan company could even con- any interest in letting us win market- we were forced to compete head-to- the French companies that were al- template exporting its savoir-faire share? I constantly see companies head with them. This wasn’t hard; as ready there. SOMAGEC ended up without the backing of a funder. trying to set up in Africa thinking a local sub-contractor we were 40% generating higher margins than in they have found a golden opportuni- Morocco although we were cheaper PR Funding is the real sticking ty, only to be dealt a hard blow. than the market rate. The multina- point for Moroccan SMEs as SOMAGEC — TOP FACTS tionals were slow to react, thinking they try to compete with multi- PR How are the Chinese step- they had the market conquered. nationals, wouldn’t you say? ping in with financing? Our next destination was Equatorial JRS Morocco today finds itself in JRS The Chinese have been a step • Founded in 1966 (its 50-year Guinea where we helped the recovery a delicate situation: we have some of ahead in investing heavily across the anniversary was in 2016) of the local economy and spent a de- the best professionals but hardly any continent and offering simple solu- • Pioneer in port and maritime cade working on the country’s major ability to self-fund. His Majesty King tions for the public works sector, infrastructure in Morocco construction sites. We really landed Mohammed VI has opened up Africa which is one of Africa’s main priori- • A leader of civil engineering ties. But at some point we’re going to in Africa and among the first Morocco is overbrimming with players who are equally have to come up with an alternative Moroccan companies to start as talented and knowedgeable as SOMAGEC. But an model. Underpinning Morocco is a operating across the continent strong economic fabric of individuals • Contributed to the construction of inability to self-fund often puts the breaks on ambitions.” able to rival the best and take on the all the ports in the Kingdom (from Joseph Roger Sahyoun, Chairman, SOMAGEC continent’s infrastructure projects. Casablanca to the ongoing Tanger How about a US-Moroccan sup- Med’s second phase — Tanger on our feet. for us, but if a Moroccan company port fund for Moroccan companies? Med is one of the largest ports in Competitors try to carve out their wants to be involved in a large-scale If we just do nothing the whole of Africa) place in this market but experience project, it has no option but to find a Morocco’s economic tissue could • Participated in most major does count; I’ve been training our en- partner to finance it, which often puts unravel, undoing over two decades infrastructure projects in Morocco gineers for over 30 years and we boast the breaks on ambitions. Morocco is of hard work. Now that His Majesty (strengthening the foundations of strong technical skills. overbrimming with players who are has led Africa to put its faith in us, we the Hassan II Mosque, developing SOMAGEC has also been luckier equally as talented and knowledge- have to really go for it. We have just Rabat’s Bouregreg Valley and the than others to some degree. Oil pric- able as SOMAGEC. Even for us, we one boss and that is His Majesty. As Casablanca Marina) es were high during the years that we have to face tough competition such his political and economic actors on • 2004: Won the tender for the entered the African market. It would as the US giants present in Mozam- the ground we are all part of one army extension of Senegal’s Port of now be much harder for a Moroccan bique. Do you really think they have striving towards a common goal. Dakar company to survive the business • 2005: Joseph Roger Sahyoun, adventure we threw ourselves into. Chairman, created the Equatorial The truth is that it’s a huge challenge Société Maghrébienne Guinea subsidiary today to be a Moroccan professional de Génie Civil (SOMAGEC) • 2007: Riad Motors was created, embracing the international market.