Morocco EU Contracts: Europeans Win, Moroccans Lose

The future Instrument for Europe in the World should allow Moroccan companies to respond to calls for tenders, subsidies and prizes financed by the European Union. Morocco belongs to the southern neighborhood, whose operators remain in principle eligible.

On Bladi.net : Morocco EU contracts: Brussels funds, Europeans win deals

However, this opening could be stripped of some of its scope. Brussels plans to be able to limit access to certain markets when it invokes security, its strategic dependencies or the protection of Union interests.

In these situations, a European company could win the main contract for a project carried out in Morocco, then entrust part of its execution to Moroccan companies. These would participate in the work, but without controlling the financing, technical choices or technologies used.

Contracts in Europe, tasks in Morocco

The risk is particularly significant in sectors considered strategic, such as digital infrastructure, critical raw materials, technological equipment or climate investments.

The European project also allows, in certain cases, to grant a subsidy directly to a private company established in the EU, without an open call for competition. A Moroccan company could not then submit an offer to obtain the main contract.

This development is analyzed in the report "Tied aid and strategic procurement" published by the European Parliament, at the request of its development committee.

Its authors fear that European preference will transform local companies into mere subcontractors. European groups would retain the most profitable contracts, while Moroccan operators would take charge of part of the execution with lower margins and decision-making power.

Morocco could also remain dependent on the European contractor after project delivery. Maintenance, updates, spare parts and access to technologies could continue to be charged by the original supplier.

This arrangement would limit skills transfers and prevent Moroccan companies from moving up the value chain. Part of the skilled jobs, revenues and technological ownership generated by European funding would thus remain in Europe.

The report therefore recommends guaranteeing genuine participation of local suppliers, beyond simple subcontracting. It calls in particular for technology transfers, knowledge sharing and a guaranteed place for companies from the beneficiary country.

On Bladi.net : article 122753

The study does not represent the official position of the European Parliament. However, it warns that Morocco could host and execute projects financed by Brussels without its own companies being the main beneficiaries.