4 Reasons to Start a Business in Morocco
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.
1. Cost-Efficient Labor Force
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.
2. Banking Benefits
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.
3. Highly Skilled Workforce
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.
4. Freedom to do Business
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.