Morocco targets shipbuilding as an economic pillar

Situated as the country with the largest maritime traffic in Africa, Morocco, through programmes such as the Atlantic Front, which plans to modify the African economic panorama, and the investments in its ports and naval installations, plans to convert the naval industry into the economic pillar of the North African country for the next 15 years.

As we have already mentioned in previous articles, the Moroccan government and the Ministry of Transport and Logistics are aiming to reach a fleet of 100 commercial ships by 2024 and to increase investment at a rate of 6% per year over the next four years. 

It is in this context that the Economic, Social and Environmental Council (EESC), a government department, has drafted a national strategy for the country to follow in order to achieve its objectives in the short and long term. 

A strong national shipbuilding industry would not only diversify the country's economy, but also encourage the transfer of technology and know-how. It would also reduce dependence on foreign shipyards for ship repair and procurement. 

Preceding the report are some conclusions and reflections by EESC President Ahmed Reda Chami, who commented on the key role of the shipbuilding industry in building a strong and competitive national commercial fleet. 

‘Morocco has the capacity to excel in the global shipbuilding market, however, it has not yet managed to fully exploit this potential,’ reads the report. Chami adds that if Morocco properly utilises and optimises its resources, it could effectively integrate into certain shipbuilding activities and markets. 

This year, the annual report focuses on Morocco's shipbuilding industry, which is seen as a key sector with high potential. Morocco has key resources that allow it to have good growth potential in the sector. 

The Alawi country has a coastline of 3,500 km, more than 1.2 million km of maritime space, and more than 43 ports, 14 of which are commercial. In addition, the shipbuilding industry collaborates effectively with the automotive and aeronautical industries, forming a tandem that the North African state wants to support its economy. 

The authorities have implemented measures to promote the shipbuilding industry, such as the creation of a plan to improve port infrastructure. A project bank for ship repair and construction has been set up to facilitate investment in these key areas. Financial support measures for investors in the shipbuilding industry have also been put in place as part of the new investment policy. 

Despite having natural resources and having made efforts, the sector faces obstacles that hinder its growth. The EESC proposes to develop a national strategy for the shipbuilding industry, based on an analysis and lessons learned from a foreign example. 

In order to succeed in the national shipbuilding industry, it is important to use a holistic approach covering all aspects affecting its functioning, attractiveness and competition. It is important to include this in the strategy, by creating a system that brings together and monitors all those involved in the shipbuilding industry, from producers to distributors.

Focus on specific sectors and areas of technology and infrastructure, with the aim of expanding local and international market presence, mainly in the Mediterranean coast and Atlantic coast countries in the short and medium term. 

In this phase, simple tasks such as renovations, unexpected repairs, scheduled maintenance and dismantling of ships will be carried out. Morocco needs to acquire skills in the construction and modification of small ships, using technologies appropriate to its level of technology in areas such as automobiles and aeronautics. 

After completing the first phase, progress will continue towards more important segments, such as improving conditions for investors by developing specialised infrastructure and speeding up the shipyard concession in the port of Casablanca; and expanding the ports of Agadir and Tan-Tan to avoid congestion in the main ports. 

Facilitating regulations and tax benefits to attract investors, and creating a dedicated fund to finance high-risk sectors is part of the development of thematic funds within the Mohammed VI Investment Fund. This is intended to promote staff training through specialised programmes and centres, as well as to boost research and development in the sector.