World Country Guide

Business Profile

Economy
Agriculture employs one-fifth of the working population, the principal crops being cereals, vegetables and citrus fruits (of which Morocco is one of the world’s largest exporters), and accounts for about 40 per cent of GDP. Livestock farming produces enough meat to fulfil domestic needs. Fishing is vital to both the domestic and export markets, as well as for the revenue accruing from the sale of licences allowing foreign fleets to fish in Moroccan territorial waters. Mining is the country’s principal industry. Morocco is the world’s largest exporter of phosphate rock, both in raw and processed form (such as fertilisers), and this is the principal source of export revenue. It has substantial other mineral assets including iron ore, coal, lead, zinc, cobalt, copper, silver and manganese. Morocco has small reserves of oil and gas, but must import the bulk of its needs. The main components of the manufacturing sector are food processing, textiles and the production of leather goods. In the service sector, tourism has grown rapidly and is now worth almost US$2 billion annually. The tourism industry has benefited from Morocco having one of the best infrastructures on the African continent; this is also an important consideration for foreign investors.
Remittances from Moroccan workers abroad (mostly in Europe) are another major source of revenue. During the last 10 years, the government has introduced a series of IMF-sponsored reforms, including trade liberalisation and public expenditure cuts in exchange for successive assistance programmes. This has reduced the size of the public sector and contributed towards easing Morocco’s huge foreign debt but at the cost of increased unemployment. Almost half the workforce are officially unemployed. A trade agreement with the EU was signed in 1995 under which all tariff barriers will be removed by 2012. Morocco is also part of a planned Free Trade Zone (including Jordan, Tunisia and Egypt) which will offer preferential access to EU markets. The Moroccan government has been negotiating a free trade agreement with the US, but has encountered difficulties with the EU, which objects to some of its terms. Finally, Morocco is now the largest single recipient of aid from the EU. Morocco is also a member of the African Development Bank, the Islamic Development Bank and a founder member of the Union of the Arab Maghreb. Morocco’s main trading partner is France, followed by other EU countries. Spain, Germany and the USA are Morocco’s main suppliers. Morocco’s principal exports are phosphates, seafood products and fertilisers.

Business
Businesspeople should be of a smart appearance, although a suit is not necessary in very hot weather. Appointments should be made in advance. Negotiations often involve a great deal of bargaining and a visitor should expect to deal with a number of people. Office hours: Mon-Fri 0830-1200 and 1430-1830.

Commercial Information
The following organisation can offer advice: La Fdration des Chambres de Commerce et d’Industrie du Maroc, 6 rue d’Erfoud, BP 218, Hassan-Rabat (tel: (37) 767 881 or 051; fax: (37) 767 076; e-mail: fccism@ccis.ma).

Conferences/Conventions
The Pullman Conference Centre in Marrakech provides meeting facilities for up to 5000 people. Additional facilities can be found at the Palais de Congrs. Further information and a special brochure on conferences and conventions, Morocco, A Feast for the Senses, can be obtained from the Moroccan National Tourist Office (see Contact Addresses section).