Morocco’s Investment offer: Opportunities, value proposition & African vision September 2014 Morocco Overview 835 Billion MAD (2013) Capital Rabat GDP US$ 100 Billion Democratic and social Constitutional 25 681 MAD/ inhabitant (2013) Institutional System GDP per capita Monarchy US$ 3 500 Area 710 850 km² Average growth 4.9% (over the last 5 years) N° of inhabitants 32.5 million GDP Distribution Primary Sector 12.7% Time Zone GMT (GMT+1 in summer) (2012) Secondary Sector 28.1% Arabic and Amazigh (official) Tertiary Sector 59.2% Languages French, Spanish, English Inflation Rate 1.9% (2013) Source: Haut Commissariat au Plan et Office des Changes Copyright(C) 2014 JETRO, All rights reserved. 禁無断転載 Contents I Morocco: An Attractive Country For Investors II Value Proposition III Morocco : priority to investor needs V Moroccan- African vision A Stable Political Environment A continuing drive for openness and democratisation . A monarchy established in the year 788 (12 centuries ago) . The Constitutional Council reviews the constitutionality of all laws . In July 2011, a referendum established a new Constitution, guaranteeing: • Human rights • Improved moral standards in public life • The legality of the State and its institutions • The plurality of the Moroccan identity • Individual and collective liberty Morocco, most stable country Morocco, most pacifist Morocco, most democratic in North Africa in 2012 country in North Africa in country in Arab region in 2013 2013 According toThe Association According to Global Peace Index 2013 According to the Egyptian center For International Affairs Ibn Khaldoun Copyright(C) 2014 JETRO, All rights reserved. 禁無断転載 Strong Macroeconomic Drivers African Country of the future 2011-2012 GDP Growth #1 (average 2001-2013) 4,8% in Africa S&P affirms Morocco's stable Inflation rating (average2001-2013) 1,8% May 2014 FDI Growth* Fitch Ratings maintains (average 2011-2013) 40% Investment Grade & BBB stable April 2014 Unemployment rate (End 2013) 9,5% Moody’s Moody’s maintains Stable government bond rating September 2014 * Flux Net des IDE entrant Sources: Haut Commissariat au Plan, Office des Changes; Bank Al Maghrib; Banque Mondiale Easiness of doing business Free More than No restrictions 100 protection to capital for repatriation of profits and foreign non-residents investment Plus de 50 capital for non- conventions de residents agreements nonand double imposition+prtaxation otection de l’investisseme 1 2 3nt 3 Copyright(C) 2014 JETRO, All rights reserved. 禁無断転載 Ambitious Sectoral Strategies INDUSTRY: Performant Ecosystem Strategy 2020 AGRICULTURE: GREEN MOROCCO PLAN 2020 • Industrial GDP to reach 23% of global GDP Launched in 2014 Launched in 2008 • To modernise the agricultural sector • Creation of 500 000 jobs • US$10 billion in additional GDP from • Creation of Industrial Development Fund: $2.5 Bn agriculture • Allocation of 1 000 hectars of land for • US$15 billion in public and private investments rent TOURISM: 2020 VISION LOGISTICS PLAN 2016 • Launched in 2010 • 20 million tourists in 2020 Launched in 2010 To improve the country’s logistical competitiveness • 200 000 new beds • To reduce logistical costs from 20% to 15% of GDP • Tourism GDP: from US$6 billion in 2010 to • An integrated national network of 70 multi- US$17 billion in 2020 flow logistical zones ENERGY: MOROCCAN SOLAR PLAN 2020 IT: MAROC NUMERIC Launched in 2009 (Solar) and in 2010 (Wind) Launched in 2009 • Generalized access to broadband • Renewable energy >40% of national • Encourage IT use by SMEs production by 2020 • Development of government e-services • Capacity: 2 000 MW of solar power + 2 000 MW of wind power PHARMACEUTICAL PLAN 2020 CHEMICAL PLAN 2020 Launched in 2012 Launched in 2012 • Turnover in export: US$1.5 billion • Turnover: US$18 billion • Direct job creation: 12 500 • GDP contribution: US$ 5.5 billion • Indirect job creation: 45 000 • Job creation: 43 000 Modern Infrastructure Airports Tramways •16 international airports •Rabat and Casablanca Ports: •Casablanca is #1 Europe-Africa hub •€1 billion • Morocco has two coastlines (Mediterranean and Atlantic) • More than 95% of trade in Morocco go through the seaway. • Morocco has 38 ports of which 18 are devoted to foreign trade. Tangier Med port: • Ideal port platform to serve Europe and West African countries Highways Railway Network • 2015: it will connect all the big cities of •First high-speed train in Africa Morocco (Tangier-Casablanca) in 2016 – €1.8 billion Copyright(C) 2014 JETRO, All rights reserved. 禁無断転載 22 Integrated Industrial Parks (P2Is) « Plug & Play » TANGER FREE ZONE TANGER AUTOMOTIVE CITY ATLANTIC FREE ZONE TETOUAN SHORE TECHNOPOLIS TANGER TETOUAN BERKANE OUJDA SHORE KENITRA OUJDA CLEANTECH RABAT FES CASANEARSHORE MEKNES CASABLANCA NOUASSEUR FES SHORE AEROSPACE CITY MARRAKECH AGADIR AGROPOLIS LAAYOUNE MARRAKECH SHORE DAKHLA OFFSHORING P2I AERONAUTICS P2I RENEWABLE ENERGY P2I GENERAL P2I AUTOMOBILE P2I AGRICULTURAL P2I Contents I Morocco: An Attractive Country For Investors II Value Proposition III Morocco : priority to investor needs V Moroccan- African vision Copyright(C) 2014 JETRO, All rights reserved. 禁無断転載 A Strategic Geographical Location EUROPE AMERICAS 9 miles MIDDLE EAST TANGER MED AFRICA MOROCCO At The Crossroads Of The Continents 7h 5h 3.5h 10d 3h NEW YORK 2d 3d PARIS 3h FRANKFURT 3h 1h 2d 1d ROME MADRID 22h 4h 30d 5d 4h BEIJING ACCRA 4d 3h CAIRO 4d DAKAR 10h 25d SAO PAULO Flight duration Sea/land route Sources: Royal Air Maroc; COMANAV Copyright(C) 2014 JETRO, All rights reserved. 禁無断転載 Unique Set Of Free Trade Agreements Agreement under negotiations with Canada Association Agreement with European Union (1996) Located just 14 km from Europe Agreement with Turkey (2003) Agreement with United States of America (2005) Agadir Agreement (2004) United Arab Emirates Agreement (2003) Arab League Agreement (1998) Agreement under negotiations with the Economic Community of West African States (ECOWAS & CEMAC) Since 2008, Morocco enjoys an Advanced Status with the EU. Logistics Hub of international stature Connections to 120 ports in 56 countries, with 40 services Index of maritime connectivity in Morocco 18 18 23 19 33 77 83 84 80 2004 2005 2006 2007 2008 2009 2010 2011 2012 Current capacity of 3.5 million containers (8.5 millions in 2015) 2 container terminals 2.5 million TEUs * in 2013 Ambition: To be included in the World Top 15 Copyright(C) 2014 JETRO, All rights reserved. 禁無断転載 Morocco: an unparalleled connection between Europe, the Middle East, and Africa Number of international Direct connections to 33 Direct connections to 36 cities passengers: European cities in Africa and the Middle East Steadily growing In millions 16.5 15.1 15.1 13.5 11.5 12 10.1 8.5 2006 2007 2008 2009 2010 2011 2012 2013 Mohammed V Airport in Casablanca: best airport in North Africa in 2012 According to the International Association of Airports Sources: Office National des Aéroports & Royal Air Maroc Competitive Costs Competitive salary (average) Exports costs* Total Tax Rates** US$ per month US$ per container 1292 3662 1268 65.0% 62.0% 64.0% 59.0% 2646 49.6% 750 576 598 1186 1044 488 512 293 380 Morocco China Tunisia Spain France Morocco Spain Tunisia China France ** Amount of taxes and mandatory *Associated costs with all procedures contributions by the company during the required to export goods second year of activity, expressed in % of commercial profits Source: World Bank 2012; Caisse Nationale de Sécurité Sociale; Doing Business Copyright(C) 2014 JETRO, All rights reserved. 禁無断転載 A young and qualified workforce A young and educated population • 64% of Moroccans are aged under 34 years • 6 million young people (between 18 and 35 years old) • An active population of 12 million • 175 000 university students • Training of 15 000 engineering graduates per year for 2015 and 25 000 for 2020 • Over 100 public universities and schools • Over 200 private universities A youth open to the world • 16 million internet users • 4,4 million Facebook users (+38k Twitters, 1st in arab countries) • ~10 millions of french speakers • ~6 millions of spanish speakers • Steady growth of English (Morocco ranked 45th worldwide and 2nd in North Africa, in terms of mastering English*) • Strong cultural and linguistic affinity with Europe Sources: Arab Social Media Report, Dubai School of Government; Haut Commissariat au Plan, Ministère de l’Enseignement Supérieur, Agence Nationale de Réglementation des Télécommunications * World index of english level, by « Education First » organization Contents I Morocco: An Attractive Country For Investors II Value Proposition III Morocco : priority to investor needs V Moroccan- African vision Copyright(C) 2014 JETRO, All rights reserved. 禁無断転載 An Attractive Incentive Package Conventional Regime Investment Promotion Offshoring Sector Funds Hassan II Fund Incentives (IPFs) . Eligibility Conditions: . Eligibility Conditions: . Corporate tax Full exoneration for • Investment ≥ US$ 24 million • Total investment ≥ US$ 1.2 first 5 years and 17,5% starting • Jobs created ≥ 250 million from the 6th year or • Transfert of technoloy • Investment in goods and . Income Tax : 20% cap in • Implementation in a priority area equipment ≥ US$ 0.6 million Nearshoring Business Parks • Protection of environment • Sectors: Automobile, aeronautics, nanotechnology, . Land Assistance: A contribution up to microelectronics, and . Training Subsidies up to US$7,800 20% of acquisition costs biotechnology. (over 3 years) . External Infrastructures: assistance . Contributions