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Morocco: The leading automobile producer in Africa

Morocco has succeeded in establishing a strong base for the expansion of its automotive industry, pioneering South Africa to become the leader of this industry in the African continent, said Friday Martyn Davies, head of the automotive sector in in the Deloitte-Africa cabinet.

Morocco has emerged as the leading auto producer in Africa thanks to a policy of cost reductions, strong incentives for the sector and significant investment in infrastructure, Davies was quoted by the South African media as saying.

Major investments in infrastructure have contributed to the expansion of the automotive sector, Davies continued, noting that incentives for foreign OEMs and multinational builders have been instrumental in strengthening the culture of investors in Morocco.

According to him, Morocco enjoys other important advantages including access to European markets.

“The proximity of Morocco to the important automotive markets in Europe has played a role in the expansion of this sector,” he added, stressing that South African manufacturers must take this into account because South Africa does not have the same export benefits.

The head of Deloitte’s office, on the other hand, noted the auto industry in South Africa stumbles over other obstacles including the challenges posed by the political uncertainty prevailing in the country.

Added to this is an unfavorable regional environment, he notes, citing weak growth in southern African countries.

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