How to succeed in setting up a manufacturing facility in Morocco ?

Central procurement office Morocco

Entering a growing market, reducing production costs, taking advantage of tax benefits or simply diversifying your financial portfolio are all reasons to invest abroad. Morocco can be an interesting destination to set up one of your branches. Favorable to industrial installations, benefiting from a cheaper and French-speaking workforce, this country close to France has many advantages to offer. Still, it is necessary to be well prepared.

The advantages of an industrial installation in Morocco

Only 14 km from Europe, via the Strait of Gibraltar, Morocco’s first advantage is its obvious proximity to the European continent. This advantageous geographical situation is reinforced by a free trade agreement concluded with the European Union. Linked to the EU by an association agreement, Morocco enjoys an advanced status, including a free trade agreement. The latter allows any company established in Morocco to import products manufactured in the EU without having to pay customs duties. By contrast, any company established in Morocco can export its products to European companies, while benefiting from exemption from customs duties in the countries concerned.

Situated at the gateway to Africa, Morocco also enjoys a strategic position for a company wishing to strengthen its commercial presence on this continent. Firmly rooted in its African roots, Morocco enjoys good political and economic relations with its neighbors.

Political stability and a favorable economic ecosystem

If Morocco is attractive to foreign investors, it is because it offers a qualified and cheap labour force. Since French is the country’s second language – and the main language of higher education – it is estimated that more than 10 million Moroccans are French-speaking, while 6 million are Spanish-speaking. A godsend to avoid all the complications caused by the language barrier!

As the second most popular African destination for foreign investors, Morocco is reassuring because of its political and economic stability. A stable constitutional monarchy, the country has rules that encourage the creation of businesses. Indeed, thanks to the establishment of a one-stop shop, the creation of a company takes an average of 15 days, and can be entirely taken care of by a representative. In addition, companies operating in export processing zones benefit from a Company Tax of only 8.5%, as opposed to the normal 17.5%, as well as an exemption from VAT.

Although the tax rates operate differently, French companies appreciate the similarity of the legal and fiscal environment. As in France, the most popular legal status in Morocco is the SARL, followed by the SA and the EI.

Morocco’s proximity to Europe therefore goes far beyond mere geography and contributes to :

  • Reducing logistics costs
  • Improving price competitiveness
  • Fostering trade

called an expert

Difficulties experienced when setting up an industrial operation in Morocco

Although French is the country’s second language, Arabic-Moroccan remains the first. In addition to this linguistic specificity, there are cultural differences. These are less important than in Asian countries, for example, but they cannot be ignored.

However, the main difficulty encountered in Morocco by European companies is the customs procedures. Whether importing or exporting goods, the processing of files by the customs service tends to take a long time. Several administrative pitfalls, due to the obsolescence of the system, are also to be noted. Inherited from colonialism, the centralisation of services is poorly adapted to the speed of trade, while branches are developing in an uncertain manner.

The need to have the right back-office partners around you

Administrative obstacles, slow customs clearance, cultural differences… Due to the specific complexities of Morocco, it is in your best interest to be accompanied by an expert at the local level to ensure the success of your industrial installation. Relying on a partner already present on the spot and familiar with the country’s operations represents a real time saver.

As a global ISO 9001:2015 company, ISP Group offers you state-of-the-art business and technology solutions in all sectors of industry to help you grow and remain profitable. From local administrative tasks to industrial purchasing, our outsourcing services enhance your business experience, streamline your internal processes and keep you focused on your challenges.

ISP manages your orders and processes to provide you with a significant advantage. By centralizing your orders with us, you save on your direct costs and solve your import problems.

Why call upon ISP for your industrial installation in Morocco ?

  • To be able to rely on a local team. Thanks to a solid structure on site, the ISP Group experts are close to you, to support you in your administrative management and optimise your purchasing strategy.
  • Rely on specialists in your sector. ISP Group specialises in industrial and production purchasing (i.e. production consumables) and administrative outsourcing.
  • Increase your industrial performance by optimizing your costs.
  • Take advantage of an ISO 9001:2015 certified organisation. This certification gives you the guarantee of a reliable partner, with formalized and homogeneous processes, subject to performance and continuous improvement criteria.
  • Benefit from a single point of contact. Within the framework of an optimization of the imports, we follow with precision the various orders and we take care of your document management.

By centralizing your orders, you save on your direct costs, while solving your import problems. This way, you are more quickly operational and able to concentrate on your core business.

Succeeding in setting up an industrial facility in Morocco means first of all knowing how to ask yourself the right questions about what the country has to offer you, and what such a decision implies. The success of such a project lies in a good preparation. Decided to settle down ? ISP Group provides you with its team of experts, qualified and operational immediately. As a partner both locally and internationally, ISP manages your orders and requirements on site, in accordance with high quality standards.  As the decision-maker for the establishment of your company in Morocco, established or not, contact us ! Together we will define how we can meet your needs.

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