Morocco import and export system

The weak dynamism of exports, specially related to the scarce productivity of industrial enterprises which, with a structure still dominated by low value-added goods, is at the origin of the structural deficit of the trade balance, which both tourism receipts and Moroccans residing abroad may have been overshadowed in recent years.In 2008, export growth excluding phosphates and derivatives was limited to about 0.5%. Imports showed a growth of 23%, mainly due to the rise in energy bill and acquisition of food products and semi-products subsequent the increase in their prices. Under these conditions, the trade deficit increased and accounted for 25.1% of GDP. Tourism receipts and transfers by Moroccans residing abroad, which did not make it possible to cover this deficit, fell respectively by 5.6% and 3.4%, current transactions resulted in a deficit of around 5.2% of GDP, marking a break in the results of recent years.To reduce the trade deficit, Morocco currently depends on various products by exporting to the rest of the world, but Moroccan traders are continually moving towards imports. In addition to the needs of the country compared to some imported items, this is a fairly rapid increase in imports from Morocco. Importers now number more than a dozen thousand, while exporters do not exceed five thousand.As a result, the country\’s trade balance is structurally negative and it continues to deplete its foreign exchange reserves. However, the import and export of goods are both important.With an open economy, Moroccan trade accounts for about 80% of gross domestic product and according to the report of The Heritage Foundation, the score of economic freedom of Morocco is 61.9, constituting an overall rise of 0.4 points, which places its economy at the rank of 86th freest of the index 2018. The increase in GDP in recent years, as well as the good political and commercial relations that it has maintained through various agreements make it a very interesting place to invest.Moreover, it is a good time for large foreign and local companies to participate in the economic development of the country if they want to play a decisive role in various projects surrounding key sectors such as infrastructure, renewable energies, agriculture food or still the civil engineering.Overall, Morocco\’s growth is partly linked to that of the agricultural sector, which concentrates mainly on cereal production, which is quite sensitive to climate change. Mining and agriculture are important branches of the Moroccan economy,
which is currently expanding its distribution channels in the fishing industry.4.1.1. Import in MoroccoAccording to Morocco\’s import statistics, issued by the Foreign Exchange Office in the \”Monthly External Trade Indicators (IMEE January 2018)\”, at the beginning of the year 2018, exports of goods and services registered an increase of 2,667 MDH against 2,019 MDH for imports, which resulted in a 6.6% decrease in the trade deficit compared to the same month of 2017. The increase in imports in January 2018 was 3.7%, standing at 35,884 MDH against 34,616 MDH in January 2017. This trend is due to the increase in food supplies, particularly cereals (wheat, maize), as well as the increase in the energy bill (gas, oil and other hydrocarbons).Morocco\’s imports include industrial primary products and semi-finished goods, consumer goods, capital goods, crude oil, food, fuel, animals and plants. It imports a large quantity of various items, but the most important imported products are energy products such as oil or gas as well as grains, vehicles, machinery, plastics and packaging materials.The countries supplying the Moroccan market are France, Spain, Italy, Germany, Russia, Saudi Arabia and China.Energy imports in MoroccoThe energy sector is one of the most dynamic in Morocco, in which renewable energies are becoming more and more important. Given economic growth, the demand for electricity and energy continues to grow.In recent years, average energy consumption has increased by about five percent and electricity consumption has increased by about eight percent. About 93% of needs are covered by imports of electricity and fossil fuels. According to forecasts, more than 42% of total energy consumption will be produced from renewable sources by 2020.Solar, wind and hydro energy each contribute 14% to this share. The Moroccan Solar Plan, which was created under the Mediterranean Solar Plan, plans to put a total of 2,000 MW of solar thermal power plants online by 2020.The country has done a lot of work building one of the largest solar thermal power plants in the world named Noor I in Ouarzazate, which generates 500MW. This is leading somehow towards reducing energy dependence and the massive need to import into Morocco.The kingdom is currently expanding its solar plants with the construction of Noor II, III and IV. Among other things, the country\’s energy bill reached 6,134 MDH, an increase of 7% and its share in total imports represents 17.1% in January 2018 against 16.6% a year earlier. This increase is generally in the supply of oil, gas and other hydrocarbons.Cereals and other food productsDespite the progress of industrialization, the agricultural sector remains an important pillar of the Moroccan economy, as it is a key factor for economic activity, consumption and employment, with a contribution to GDP between 15 and 20%.Yet the sector remains vulnerable because of its high dependence on the climate.In fact, of the 9.5 million hectares of cultivated land, only about 1.4 million hectares are irrigated. Although the government has been promoting agriculture for many years, the development of food processing is still in its infancy, and this situation gives companies a relatively strong incentive to import into Morocco.Agriculture is characterized by a large number of small companies that work with little mechanization, and in most cases without effective fertilization.This structural weakness leads the country to buy different food products abroad. In addition, modern farms cover only about one-eighth of the total cultivable area.Regarding Morocco\’s imports of cereal products mainly for wheat, corn and barley, purchases reached MAD 1.193 million in January 2018 against MAD 589 million a year earlier, an increase of MAD 604 million.For wheat in particular, the change is due to the increase in import quantities which more than doubled and the drop in the import price. Although one of the government\’s objectives is to ensure agricultural self-sufficiency, today only about 50% of national agricultural needs are met. In addition, cereal cultivation accounts for about 75% of cultivated area. The products exported by Morocco in this sector are strongly focused on the cultivation of fruits and vegetables, and this is turning more and more on olive oil.In the field of fruit and vegetables (dominated by tomatoes, citrus fruits and olives), Morocco is fairly competitive on the international market and exports intensively.Equipment goods and semi-finished productsThe different sectors such as industry and construction or communication offer many perspectives for these types of products.The construction sector is one of the main drivers of the country\’s economic growth, contributing around 10% of GDP and employing more than one million people.As a result, the government is promoting investment in this area along with infrastructure through various financing and investment programs aimed at attracting private and foreign companies as well as international development banks. The drivers of the industry include mainly infrastructure projects, social housing and tourism. Investments benefit in particular the sectors of railways, ports, airports, infrastructures, highways, water and electricity, renewable energies, urbanism, tourism, health care, shopping centers and sports facilities.Referring to Morocco\’s import statistics from the EMI, imports of capital goods reached MAD 8,636 million in January 2018 compared to MAD 8,743 million a year earlier, which represents a decrease of 1.2%, and imports of semi-finished products, remained stable at 7.882 MDH against 7.800 MDH in January 2017.According to Moroccan government forecasts, more than 3 billion euros will be invested in construction and infrastructure, and the strengthening of the motorway network remains a national priority. Morocco already has one of the densest motorway networks in Africa with more than 1,800 km. The construction of the Moroccan version of the French TGV, which sails from Tangier to Casablanca.4.1.2. Exports in MoroccoAccording to Morocco\’s import statistics, issued by the Foreign Exchange Office in the \”Monthly External Trade Indicators (IMEE January 2018)\”, exports of goods and services registered an increase of 2,667 MDH.The rise in exports is the result of good performance of sales at the service level, tourism, including sales in the automotive sector, phosphates and its derivatives.The products exported by Morocco are mainly consumer goods, and among these, textiles are popular export products. There are also semi-finished products including phosphoric acid, fertilizers and electronic components such as transistors, food products such as fruits, vegetables and fish, but also automobiles. Purchasing countries include France, Spain, the United Kingdom, Italy, the United States, India, Germany and Brazil.PhosphatePhosphate production is controlled by the Office Cherifien Phosphates OCP (founded August 7, 1920 in Morocco), one of the major exporters of raw phosphate,of phosphoric acid and of phosphate fertilizers in the world.Currently, the OCP group has projects specifically designed to increase its production and exports. Six new fertilizer plants will be built (from 2018 to 2025) in Jorf Lasfar, as well as a pipeline connecting the Benguerir mines and the Safi chemical complex, as well as a fertilizer plant in Ethiopia and a blending unit in Rwanda.Automobile industry