Morocco’s Automotive Industry Emerges as Model for African Economic Growth

The Moroccan automotive industry is based on four hubs built on six ecosystems: wiring, metal and stamping, batteries, vehicle interiors and seats, engines and transmissions and truck and commercial vehicle bodies, established in partnership with major international equipment manufacturers. If these hubs are successful, it is probably thanks to the development of policies in the free zones, thus allowing companies to export 85% in addition to the exemption from production taxes and VAT on companies, as well as the active offshore banks in the Moroccan free zones for exports.

It is also thanks to the improvement of credible supply chain networks to govern logistics and possibly improve export lead times and thus productivity and co-investment in important infrastructure, the WEF report pointed out, stressing that Morocco has set up skills development programs focused on employees at various levels and ordered with production obligations in the hubs.

In the same vein, the Minister of Industry, Trade and Green and Digital Economy, Moulay Hafid Elalamy, quoted in the report, stressed that the success "can also be attributed to the leadership will to create an industry rooted in the future of mobility. In the future, we will work more on connected vehicles and continue to build ecosystems in this direction." The report also highlighted that Morocco has managed to develop its local production capacity, with 50 specialized companies creating more than 148,000 direct jobs between 2014 and 2019. As well as an annual production of over 400,000 vehicles with 40% integration.