The document provides an overview of doing business in Morocco and North Africa. It discusses the key economic indicators and facts about Morocco, including its GDP, unemployment rate, exports, and trading partners. Morocco has a population of over 33 million people and its economy relies heavily on agriculture. The document also examines the Moroccan business environment, noting it ranks well on ease of doing business. Additionally, it analyzes cultural dimensions to understand the hierarchical and relationship-focused Moroccan business culture, where indirect communication and personal relationships are important.

1. Doing Business in Morocco & North Africa!
By Hicham Hazzaz
Year: 2017

2. « The only man I envy is the one who has not yet been to Africa..for he
has so much to look forward to »
Morocco
Algeria
Tunisia
Libya
Egypt
Mauritania

3. Agenda!
1. General facts and figures
2. Moroccan Economy
3. Moroccan Business Environment
4. Moroccan & North African Business Culture

4. General facts and figures!

5. North Africa is the biggest economy region in Africa!
Source:
World
Bank

6. The top 5 largest country economies constitute over 60%
of the whole African economy. !
Source:
World
Bank

7. Kingdom of Morocco!

8. Key
indicators
Population
§ Population : 33,8 millions
§ Urban population: 60%
§ Working population : 11,67 millions
§ Unemployment: 10%
§ Life expectancy: 74,8 years Men : 73,9 years;Women: 75,6 years
§ GDP USD 111 billion
§ GDP per capita : 8,863,1$/year
§ Poverty rate: 9%
Country profile
Situation
§ Geographical area : North Africa at 14 km from Spain
§ Area : 711 KKM2
§ The longest coastline in Africa: Atlantic
ocean & Mediterranean Sea
§ Capital: Rabat/ Economic capital: Casablanca/ Many
important ports (Tangier, Casablanca, Agadir)
Language & currency
§ Official languages: Arabic, Berber
§ Convoyed languages: French, English, Spanish
§ Currency: 1 euro ~ 11 DH

9. Key
indicators
1/2
Country profile
• Morocco is a constitutional monarchy, and one of the most
politically stable countries in Africa
• Emerging Financial market (74 listed companies). In 2014,
Casablanca financial market has been included in the Global
Financial Center Index as the 33nd financial market in the world
and the 1st in Africa.
• Global businesses:Tourism, mining, offshoring, food processing
industry, automotive industry, aerospace industry, solar energy …
• Closeness to European market: 14 kilometers

10. Key
indicators
(2/2)
Country profile
• European Union: 1st trading partner (both customer and supplier)
• Then the major following suppliers are China, USA and Kingdom of
Saudi Arabia.The most important customers, after EU, are India and
USA
• 74% of world’s reserves and first exporter of phosphate in the
world
• Coastline of Thousands of Kilometers with fauna-rich marine
waters.
• Has some of the most developed infrastructures among African
countries
• Morocco is known for it’s cultural openness and its nice weather.

11. Moroccan Economy!

12. Moroccan economy facts!
• Fifth largest economy in Africa
• GDP: $101 billion (2016)
• GDP real growth rate: 3.8% (2017)
• GDP per capita (ppp): $8.863 (2017)
• Currency: Dh (Dirham)
• Exchange rate: 1 Euro = 11 Dirhams
• Public dept: 64.7 % of GPD (2016)

13. Morocco GDP Growth Rate!

14. Economic Facts!
• Labor force: 12.2 million (2016 est)
• Unemployment rate: 10.5% (2017 est)
• Inflation rate: 0.4% (2017)
• Industrial production growth rate: 3,7% (2010), 3,0% (2011)
• Economy characterized by heavy reliement on agriculture
(>85%)
• Very attractive for foreign investors (>10,000 foreign
companies, with >2 million employees and sales of >750 billion/
year)

15. Unemployment rate in Morocco!

16. Development of Inflation!

17. Source: CIA World Factbook 2017
Major Economic Sectors!

18. Made in Morocco…!
Agriculture Products Industries
Barely Automotive (cars & parts)
Wheat Phosphate mining and
processing
Citrus fruits Aerospace (aircrafts parts)
Grapes Food processing
Vegetables Textiles
Olives Energy
Livestock Tourism
Wine Construction
Leather goods

19. International Trade
Exports
€ 23 billion
Export Commodities:
• Automobiles & car parts
• Electric components
• Crude minerals
• Fertilizers
• Fruits, Veg & Fish
• Textiles
Source: 2017 CIA worldfactbook
Imports
€ 41.5 billion
Import Commodities:
• Machinery
• Crude petroleum
• Telco equipment
• Weat,
• Gaz & Electricity
• Metals
Negative trade balance: € 18.5 billion (2016) (Morocco)

20. Morocco‘s main trading partners
Source: CIA World Factbook 2017

21. Moroccan Business !
Environment!

22. Business Environment!
EASE OF… Morocco Egypt Tunisia Algeria
Doing Business 69
128 88 166
Starting a Business 35
103 100 145
Dealing with C. Permit 17
66 95 146
Registering Property 86
119 93 163
Getting Credit 105
90 105 177
Protecting Investors 62
81 119 170
Paying Taxes 25
167 140 157
Trading Across
Borders 65
170 96 181
Enforcing Contracts 57
160 76 103
Closing a Business 134
115 63 71
Source:
World
Bank
–
Doing
Business.org
*The rankings are from the Doing Business
2017 report

23. Business environment obstacles!
Source:
2017
Entreprise
survey
by
The
World
Bank

24. Labour in Morroco!

25. What to know about the Moroccan
labour market!
• Wages are among the highest in Africa
• Youth unemployment is the biggest challenge in Morocco and Africa
(25% vs a national 10% rate)
• Inadequate supply of skills by local education system
• Advanced linguistics capacities
• Average working hours: 44 hours/week

26. Videos:
o Morocco
o https://www.youtube.com/watch?v=Al9mg9udXkE
o https://www.youtube.com/watch?v=foN5_aMrmUY
o Algeria
o https://www.youtube.com/watch?v=AP7MiE6SE28

27. North African !
Business Culture!

28. Analyzing local cultures through the Cultural Dimensions
model by Geert Hofstede!
• PDI: Power Distance Index:
• This dimension expresses how a society deal with inequalities among people
• IDV: Individualism
• This dimension expresses the I (vs) We in a society
• MAS: Masculinity
• This dimension expresses tough (vs) tender cultures
• UAI: Uncertainty Avoidance Index
• This dimension expresses to which degree members of a society feels comfortable
with ambiguity and uncertainty
• LTO: Long Term Orientation
• This dimension expresses how a society encourage a pragmatic approach versus a
more normative short term approach
• IND: Indulgence
• This dimension expresses how a society allows natural human drive versus strict
social norms

29. Cultural Dimension by Geert Hofstede!
Eg: Morocco Vs UK!
Source: http://www.geert-hofstede.com

30. Cultural Dimension by Geert Hofstede!
Eg: Egypt Vs Germany!
Source: http://www.geert-hofstede.com

31. So, What you need to know about
the Moroccan business culture…!
• It is a hierarchical society, subordinates expect to be told what to do
• It is considered ad a collectivistic society, a simple offence might lead to shame
and loss of face!
• Employer/Employee relationships are perceived in moral terms (like a family
link)
• Interpersonal relationships do play an important role in business dealings
• Focus on indirect communication style
• People will tend to feel threatened in ambigious or uncertain situations
• Focusing on achieving quick results through standard ways of operating is far
more prefered to radical changes

32. What to know about the Moroccan
culture…!
• The business culture has a well-defined hierarchy which includes clear
responsibilities and distinctions between roles
• Status and academic titles are quite important to Moroccans – address
people by their full and correct titles
• In formal business meetings, the highest-ranking person usually enters the
room first

33. What to know about the Moroccan
culture…!
• When doing business, personal relationships, family, trust and honor are
very important
• Local system works on the idea that favours are never forgotten!
• Politeness and formality are a rule
• Self control is both highly respected and rewarded
• Moroccans aren‘t usually in hurry to close a deal, so be prepared for many
face to face meetings
• Meetings should not be organised too far in advance and last minute
changes are common

34. What to know about the Moroccan
culture…!
• Business can be conducted in Arabic, French or to a lesser
extent English
• Expect people to imply rather than explicitly explain a context
• TIME is required to REALLY understand a situation or
context
• Meetings can be chaotic, so be ready to be patient
• Punctuality is expected from foreigners, however Moroccans
are rarely punctual
• Appearance is very important so always aim to be well
dressed when going to business meetings

35. Quiz Time!!

36. True or False:
o Oral commitments can represent legally binding contracts
in Morocco
o Negotiators in Morocco often extend negotiation time
as a pressure tactic to obtain further concessions?
o When meeting a local business partner for the first time,
expect to delve straight into professional matters
o Your local business partner accepts to be openly
criticised and challenged in front of his subordinates

37. True or False:
o Speaking French is key to understanding local business
culture
o What Moroccans say in public is similar to what they
might confide in private
o Your contract in Morocco might be renegotiated even
after signing it
o Pushing and Playing hard ball is the best way to get things
done in Morocco

38. True or False:
o Friday midday is the best time in the week to schedule
important meetings
o The concept of shame *Hshuma* is not important in local
culture
o Puncuality is very important for Moroccans
o It is a good practice to be informal with your local
Moroccan partner during a business meeting

39. True or False:
o It is a common practice not to haggle and negotiate hard
contracts
o During face to face meetings, Moroccans judge their
business partners on their skills and expertise
o It is highly recommended to communicate with your
Moroccan colleagues or partners by email
o This sign in Morocco means that everything is
OK

40. Videos:
o Morocco
o https://www.youtube.com/watch?v=Al9mg9udXkE
o https://www.youtube.com/watch?v=foN5_aMrmUY
o Algeria
o https://www.youtube.com/watch?v=AP7MiE6SE28

41. Thank you!!
Q & A!