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The World Bank: Morocco’s aeronautics sector has grown considerably

The World Bank estimates in its diagnosis on the private sector in Morocco that aeronautics is growing and is a vector of jobs and investments, but faces several challenges, which prevent it from creating links between equipment manufacturers, large suppliers and small national companies.

According to the World Bank (WB) report, Morocco’s aerospace industry has grown considerably over the last 15 years, enabling it to position itself in a highly competitive market and to become one of the emerging sectors of the country. in terms of growth and job creation.

“It is expected that by 2020, these industrial ecosystems will represent 23,000 jobs, bring export turnover to $ 1.6 billion and the local integration rate to 35%, and that they attract more than 100 new suppliers”, underlines the diagnosis.

The same document evokes the problem of land and the growing demand for land around Casablanca, “this region is very attractive because of its proximity to other aeronautical companies, as well as to the port and the airport … As a result, prices have risen sharply, affecting mainly small businesses”.

In its recommendations, the World Bank argues that solutions to this problem must be studied, including the possibility of finding other locations, such as the free zone of Tangier, which offers competitive prices but also the proximity of the airport and port Tangier Med: “An incentive program could be considered to encourage companies to settle in Tangier,” they said.

The WB also recalls the problem of transfer costs, which are high for foreign investors and could be prohibitive for some companies. These costs include, but are not limited to, the transfer of machinery and work packages to another country, as well as the cost of installing machinery and training new employees for their use or expatriation expenses.

To conclude, the report sheds light on the problems of financing to receive subsidies, local businesses and entrepreneurs are required to work with Moroccan banks. However, they do not provide investment or cash support, impose high interest rates and require significant collateral. This creates a major obstacle to the entry of new companies in the aeronautical sector.

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