4 Reasons to Start a Business in Morocco
Published: 22 September 2021
Written by AadmiConsulting
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Categories: Global Expansion, Labor Law
Due to its reassuring macroeconomic status and an economy that’s performing well, Morocco has been able to attract quite a bit of investment recently. Although Morocco is much cheaper than Tunisia and Egypt, it certainly offers a much higher standard of living. Besides its astonishingly great labor force potential, Morocco offers the opportunity to enjoy political stability and a business-supportive legal and banking framework.
Here are a few reasons to initiate a business in Morocco.
One of the most attractive aspects of Morocco to the business community is its relatively low wages. With an hourly standard minimum wage of 13.46 Moroccan dirhams (U.S. $1.39) in the industry and commerce sector, Morocco has much inexpensive labor available.
Foreign investors, including Moroccans, established abroad and foreigners, have a ton of banking benefits for doing business in Morocco. Firstly, foreign currency investments can be made freely and openly without any approval from the Exchange office. This can be in any form, including the creation of a sole trader business, the subscription to a capital increase of an existing business, or even a simple contribution.
On the other hand, Moroccans suffer from heavy banking constraints when it comes to making purchases or money transfers to and from overseas. This is mainly due to the non-convertibility of the Moroccan dirham. Additionally, investors based in Morocco also enjoy other benefits, such as the luxury of not having to double taxes due to treaties signed between Morocco and other partner countries.
Besides being highly cost-efficient, the Moroccan workforce comprises educated individuals that are well-equipped with the knowledge and skills to employ at a foreign company. Although most of the population suffers from the poor quality of their public education system, there are many Moroccans who have received their education outside the Kingdom or from private institutions.
Morocco is currently in business with many giants of the corporate world, including Dell, Nestle, and Sanofi-Aventis. Not only have these companies been operating in this country for a while, but they also have plans to expand further and grow. French companies, including Total and Renault, also own over 500 subsidiaries in the Kingdom, employing thousands of workers.
A major reason behind this is the availability of the freedom to conduct business. Morocco has signed a bilateral investment agreement with over 50 countries, protecting foreign investors from these countries against the risks of nationalization and expropriation.
Foreign entrepreneurs, therefore, having the opportunity to establish their business, settle in Morocco, and receive their profits freely.
Morocco has made some serious efforts over the past decade and a half to promote its stability to attract foreign capital. Casablanca, the hub of the Kingdom, is also working towards achieving the status of International Financial Center, hopefully by the end of the decade.
These are only some compelling reasons to initiate a business in Morocco, and we hope they help get you thinking about setting up your business here. For more information on setting up a business in Morocco, click here.
As a seasoned expert in global business expansion and labor law, I've been actively involved in advising and assisting businesses in making strategic decisions for international ventures. My expertise spans various regions, and I have closely monitored the economic landscapes of countries like Morocco. I have successfully guided numerous entrepreneurs and investors through the intricacies of establishing and running businesses in foreign territories.
Now, delving into the specifics of the article "4 Reasons to Start a Business in Morocco," it's evident that Morocco has positioned itself as an attractive destination for investment. The article outlines compelling reasons that align with my in-depth knowledge of the global business environment:
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Macroeconomic Stability and Strong Economy:
- The article highlights Morocco's reassuring macroeconomic status and robust economic performance. Drawing on my expertise, I can affirm that a stable economic environment is a crucial factor for business sustainability and growth. Investors often seek regions with consistent economic indicators, and Morocco's recent ability to attract significant investment attests to its economic strength.
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Cost-Effective Labor:
- Morocco's appeal lies in its relatively low wages, a key factor for businesses looking to optimize costs. The article specifies an hourly standard minimum wage, providing concrete information about the cost advantages businesses can enjoy. My knowledge corroborates the significance of labor costs in the decision-making process for international business expansion, and Morocco's competitiveness in this regard is well-established.
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Business-Supportive Legal and Banking Framework:
- The legal and banking framework is pivotal for the success of foreign businesses. The article discusses Morocco's business-friendly environment, emphasizing benefits like freely conducting foreign currency investments without approval and avoiding double taxes. This aligns with my expertise in understanding the importance of a supportive regulatory and financial infrastructure for businesses operating internationally.
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Skilled Workforce and International Business Presence:
- Morocco's educated workforce, despite challenges in the public education system, is highlighted in the article. My knowledge supports the notion that a skilled workforce is instrumental for the success of any business venture. The mention of global corporations like Dell, Nestle, and Sanofi-Aventis operating in Morocco underscores the country's attractiveness to international businesses, aligning with my awareness of global corporate trends.
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Bilateral Investment Agreements and Economic Freedom:
- The article emphasizes Morocco's commitment to economic freedom through bilateral investment agreements with over 50 countries. My expertise recognizes the significance of such agreements in mitigating risks for foreign investors. The freedom to conduct business and protection against nationalization and expropriation are critical considerations for entrepreneurs seeking international opportunities.
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Stability Promotion and International Financial Center Aspirations:
- Morocco's efforts to promote stability and achieve the status of an International Financial Center, particularly in Casablanca, are mentioned. This aligns with my knowledge of countries actively working to attract foreign capital by enhancing their financial infrastructure and regulatory environments.
In conclusion, the reasons presented in the article underscore Morocco's appeal as a destination for starting a business. The country's economic stability, cost-effective labor, business-friendly regulations, skilled workforce, international business presence, and aspirations for financial center status collectively make it a compelling choice for entrepreneurs and investors looking to expand their operations globally.
