Morocco Seeks Investment to Boost Textile Industry Amid Rising Competition

Morocco has become one of the main fashion hubs due to its proximity to Europe, which reduces delivery times, the relocation of the industry and cheap labor. Recently, the kingdom is fighting to maintain a share of the market that cheap hubs nearby like Turkey are trying to recover, according to Modaes. In Morocco, the minimum wage for a worker in the fashion industry is 142.7 euros per month, while it is 104.5 euros in Turkey.

To face this competition, the Moroccan Association of the Textile and Clothing Industry (AMITH) has launched a strategic plan for 2035 to attract more investment in the textile and clothing industry. This program aims to bring exports in the sector back to pre-pandemic levels, the same source specifies.

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The textile and clothing sector in Morocco includes 1,628 companies and employs around 189,000 workers. It contributes about 15% of the Gross Domestic Product (GDP) and exports are estimated at around $3.88 billion per year. The sector produces 1 billion pieces per year and generates a turnover of 4.65 billion euros per year. According to AMITH data, Morocco is the seventh largest supplier of clothing to Europe and the Moroccan textile and clothing sector could generate exports worth $6.3 billion by 2035.

To read: Morocco Extends Tariffs on Turkish Textile Imports for Another Year

On January 1st, Morocco extended the preferential agreement on Turkish textiles by one year. The measure, established by the Customs and Direct Taxes Administration (ADII), imposes additional customs duties to be paid for Turkish textile products before entering Morocco. As for Spain, its exports of Moroccan textiles increased by 30% in 2021, reaching 1.656 billion euros.