Report: Morocco Sets an Example in Special Economic Zones Development

Tuesday 28 November 2023 - 16:00

By: Dakir Madiha

Report: Morocco Sets an Example in Special Economic Zones Development

Morocco stands at the forefront of establishing new Special Economic Zones (SEZs) and attracting foreign direct investment (FDI), particularly in higher value-added technological industries. A recent report by Oxford Business Group, titled "How Special Economic Zones are shaping Africa's industrial landscape," underscores Morocco's success in this regard, both within Africa and globally.

The report reveals that Morocco's exports surged by $2 billion between 2010 and 2016, with automobile exports expanding from 2% to 16% of the total. Notably, the share of medium and high-tech exports rose from 23% to over 40% between 2008 and 2015.

The Moroccan government has played a pivotal role in fostering industrial investment, implementing initiatives like the National Pact for Industrial Emergence in 2008 and the Industrial Acceleration Plan in 2014. Additionally, various fiscal incentives have been offered to investors. Over the past decade, Morocco has strategically focused on high-tech sectors, particularly the automotive industry.

The government's prioritization of specific industries such as automotive, aerospace, electronics, and agro-industrial processing aligned with their investment potential, has contributed to this success. The development of SEZs in Morocco has been supported by political stability, affordable skilled labor, and proximity to Europe.

In 2020, advisory firm FDI Intelligence ranked Morocco’s Tanger Med Zones the group of eight free zones around the port of Tangier as the top free zone in Africa and second globally, according to the analysis.

However, the report points out that while several emerging economies have sought to replicate Morocco's achievements in high-tech industrial development, many have struggled to integrate local low-tech industries, such as agriculture and manufacturing, with advanced industrialized solutions. This challenge is attributed to a lack of adequate training for highly skilled workers, leading to a disconnect between local economic activities and the expectations of international investors.

Looking ahead, the report underscores the potential impact of the African Continental Free Trade Area (AfCFTA) on enhancing integration across the continent. It anticipates that AfCFTA will drive structural transformation, shifting African economies from a focus on low value-added industries to more diversified and knowledge-based economic activities.

The research highlights that the recent surge in free zone development in Africa has mainly aimed at adding value to conventional economic industries like agriculture and manufacturing. Morocco's experience serves as a valuable example for other nations seeking to navigate