Country FilesNorthCountry Profile 2014: MOROCCO

Fri,24Nov2017

Country Profile 2014: MOROCCO

The king back in control

King Mohammed VI has reasserted his primacyover the political system after a two-year period that saw the launch of a new constitution and the election of the first Islamist government. But the king has given the Islamists tough cards to play, including implementing pension reform and reducing fuel subsidies.

 

 TABLE OF CONTENTS:

TOP MOROCCAN COMPANIES

TOP MOROCCAN BANKS

 

ar-infographie-morocco-2014The king back in control

A new coalition government includes the Islamist PJD and more centrist parties

The country is courting both European investment and sub-Saharan markets

King Mohammed VI has reasserted his primacyover the political system after a two-year period that saw the launch of a new constitution and the election of the first Islamist government. But the king has given the Islamists tough cards to play, including implementing pension reform and reducing fuel subsidies. Meanwhile, the growth of the export base, which includes the auto, electrical and aeronautical engineering sectors, continues apace. Progress in the agriculture sector is bringing a greater resilience to an economy that had been prone to drought.

In October 2013, King Mohammed VI named a new government, following the resignation of all conservative party Istiqlal’s ministers from the coalition with the Islamist Parti de la Justice et du Développement (PJD). The new coalition will be more difficult for Prime Minister Abdelilah Benkirane to balance, with centrist parties – including the business-minded Rassemblement National des Indépendants – entering and the PJD’s conservative allies exiting.

BETTER FOR BUSINESS

Despite the 17% cut in public investment from the budget, the government boosted the public payroll by 5.5% in the 2014 budget, erasing most of the savings. Meanwhile, even though the government hopes to boost consumption to foster growth, a rise in value-added tax on some products will dampen enthusiasm. The continued sluggish growth in Morocco’s principal trading partner, the European Union, means the targeted 4.2% growth will not likely be attained in 2014.

Nonetheless, the investment climate is improving, if only slowly. Tax cuts for entrepreneurs contributed to the country’s jump from 95th to 87th place in the World Bank’s 2014 Doing Business ranking. That advance is balanced by the frustration encountered by businesses in dealing with the administration. Buying property remains difficult, for example.

The government has the support of the major international financial institutions for its reform efforts. The World Bank is set to lend Morocco around $500m in four years from 2014. The International Monetary Fund authorised a 24-month credit line of $6.2bn in August 2013. It said the government has been slow to implement subsidy and pension reforms.

The government is also spending on an infrastructure development programme. It launched a tram line in Casablanca in December 2012 and construction of another line will begin in January 2014. The foreign investment drive, which brought large exporters like Renault and Bombardier into special economic zones in the north around Tangiers, is set to continue in 2014. There is talk that another major car manufacturer will sign up, and the government is shifting its focus to Anglophone and German engineering companies.

ROUGH JUSTICE

Opposition from civil society groups, which strengthened with the Mouvement du 20 Février in 2011 that triggered constitutional changes amid the North Africa uprisings, will continue in 2014. The king’s pardon of a Spanish paedophile in July 2013 caused demonstrations in Casablanca. There was a similar strong reaction in September when the authorities jailed Ali Anouzla, editor of a news website that published a link to a Spanish newspaper hosting an Al Qaeda video.

The government’s diplomatic overtures in 2013 targeted key markets south of the Sahara. Côte d’Ivoire, Senegal and Gabon all received visits from the king, together with Moroccan businessmen such as construction tycoons Anas Sefrioui and Alami Lazraq. Moroccan pharmaceutical, financial, real estate, energy and transport companies will continue to look for African deals in 2014.

In 2013, King Mohammed VI’s government prevented the expansion of the United Nations Mission for the Referendum in Western Sahara’s mandate to cover human rights issues. Morocco is also getting more implicated in the Sahel and will host a Communauté des États Sahélo-Sahariens summit in 2014, with the aim of improving security in the region and reforming the Banque Sahélo-Saharienne pour l’Investissement et le Commerce. In November, the government also announced that it would hold a regularisation campaign in 2014 for the estimated 25,000-40,000 undocumented sub-Saharan African migrants thought to live in the country.

 

TOP MOROCCAN COMPANIES

Rank 2012Rank 2011CompanySectorCountryTurnover (Thds $)Turnover changeNet profits
1424OFFICE CHRIFIEN DES PHOSPHATESMININGMOROCCO6,782,57632.25%0
21-SOC. NAT. DINVESTISSEMENTDIVERSIFIEDMOROCCO5,853,456NA499,402
2337SAMIRREFININGMOROCCO5,777,03632.32%50,405
4242GROUPE MAROC TELECOMTELECOMSMOROCCO3,581,409-4.07%943,405
5362OFFICE NATIONAL DE LLECTRICITELECTRICITYMOROCCO2,943,92419.62%0
57-MAROC TELECOMTELECOMSMOROCCO2,783,411NA0
5958AKWA GROUP*DIVERSIFIEDMOROCCO2,593,800NA0
72-AFRIQUIA SMDCPETROL. SERVICESMOROCCO1,994,288NA0
8992IMPerial TOBACCO MARoc (ex ALTADIS)TOBACCOMOROCCO1,671,7531.28%0
10398ROYAL AIR MAROCAIR TRANSPORTMOROCCO1,505,701-1.33%-201,596
120116HOLDING YNNADIVERSIFIEDMOROCCO1,234,6841.46%0
126127VIVO ENERGY MAROC (ex SHELL MAROC)PETROL. SERVICESMOROCCO1,187,9405.95%0
134158DOUJA PROMOTIONREAL ESTATEMOROCCO1,083,89221.25%213,112
135138MARJANE HOLDINGRETAILMOROCCO1,083,2784.22%0
148154TOTAL MAROCPETROL. SERVICESMOROCCO986,7938.20%0
180187CENTRALE LAITIREAGRIBUSINESSMOROCCO762,7346.53%50,637
190201LYONNAISE DES EAUX DE CASABLANCAWATEr, ELECtr.MOROCCO717,7267.31%26,874
193193COMP. SUCRIRE MAROCAine DE RAFFINAGEAGRIBUSINESSMOROCCO703,9252.75%72,239
195197MDITelTELECOMSMOROCCO692,3112.96%0
200209SAHAM HOLDINGDIVERSIFIEDMOROCCO685,2269.64%0
205283INWI (ex WANA CORP.)TELECOMSMOROCCO661,99851.75%0
210207LAFARGE CIMENTSCONST. MATERIALSMOROCCO646,5512.43%193,257
211261SOCIT NATIONALE DE SIDRURGIESTEELMOROCCO645,35033.03%17,217
216227JORF LASFAR ENERGY CO.ELECTRICITYMOROCCO629,6799.12%0
218222LABELVIERETAILMOROCCO627,3136.67%5,356
222287SOC. MAROCAINE DE CONST. AUTOMOBILESAUTOMOBILEMOROCCO618,18344.30%0
224243WAFA ASSURANCEINSURANCEMOROCCO613,21916.60%94,073
234220HOLDING DAMNAGEMENT AL OMRANEREAL ESTATEMOROCCO588,830-0.03%0
242277SALAM GAZPETROL. SERVICESMOROCCO565,16524.93%15,739
243-SAHAM FINANCESINSURANCEMOROCCO563,976NA17,769
245262CDG DVELOPPEMENTREAL ESTATEMOROCCO557,47215.33%64,806
248255PTROLE DU MAGHREBPETROL. SERVICESMOROCCO541,249NA0
258264LIBYA OIL MAROCPETROL. SERVICESMOROCCO525,1148.94%5,830
265244RMA WATANIYAINSURANCEMOROCCO508,531-3.03%0
266367ALLIANCES DVELOPPEMENT IMMOBILIERREAL ESTATEMOROCCO504,16463.71%113,004
272259RENAULT MAROC*AUTOMOBILEMOROCCO490,021NA0
280286CIMENTS DU MAROCCONST. MATERIALSMOROCCO461,9487.62%113,340
283303LESIEUR CRISTALAGRIBUSINESSMOROCCO452,48111.57%3,833
292307COMP. MAROCAINE DES HYDROCARBURESPETROLEUMMOROCCO436,3828.86%0
297285OFFICE NATIONAL DE LEAU POTABLE*WATERMOROCCO429,746NA16,270
299302AFRIQUIA GAZENERGYMOROCCO427,8935.28%40,656
308323OFFICE NAT. DES CHEMINS DE FER DU MAROCRAIL TRANSPORTMOROCCO415,06113.64%8,234
310292HOLCIMCONST. MATERIALSMOROCCO405,778-2.88%66,814
317296HOLDING MAROC. COMM. ET FINANCIREDIVERSIFIEDMOROCCO391,851-5.15%0
324331AXA ASSURANCE MAROCINSURANCEMOROCCO380,2318.06%0
335339GROUPE MANAGEMMININGMOROCCO356,3995.10%55,550
337332CNIA SAADA ASSURANCEINSURANCEMOROCCO352,8330.64%0
345337ANOUAR INVEST*DIVERSIFIEDMOROCCO343,482NA0
353365AUTO HALLAUTOMOBILEMOROCCO332,9187.49%21,149
358370OFFICE NATIONAL DES AROPORTSAIR TRANSPORTMOROCCO327,8056.88%0
 

 

TOP MOROCCAN BANKS

Rank 2012Rank 2011Bank nameCountryTotal assetsNet interest incomeLoansDeposits
77ATTIJARIWAFA BANKMOROCCO39,888,5211,844,54426,791,36925,413,205
1011CRDIT POPULAIRE DU MAROCMOROCCO27,566,9901,179,51819,801,63821,321,562
1212BANQUE MAROC. DU COMMERCE EXT.MOROCCO24,245,909949,27114,144,52616,220,490
2625SOCIT GNRALE MAROCAINE DE BANQUESMOROCCO9,315,357440,0547,355,0307,206,022
2728BANQUE MAROC. POUR LE COMM. ET LIND.MOROCCO8,337,397355,6936,786,2075,050,122
4241CRDIT DU MAROCMOROCCO5,444,226240,0704,096,8973,915,266
5456CRDIT IMMOBILIER ET HTELIERMOROCCO3,726,494152,3082,948,4082,026,316
 


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