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| Population | 30 million |
| Population Growth Rate | 2.1 % |
| Languages | French (business), Arabic (official), Berber dialects, Spanish |
| Area | 280,00 square miles, about the size of Oregon and Washington combined. |
| Work Week | Monday to Friday, generally 8:30 a.m.-12:30 p.m. and 2:00-6:30 p.m., with summer variation. |
| Time | GMT -1 |
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1997 | 1998 (p) | 1999(e) |
| Gross Domestic Product | 33,887 | 33,387 | 34,722 |
| Real GDP growth (percent change) | -2.2% | 6.8 | 4.0 |
| GDP per capita ($) | 1,260 | 1,230 | 1,254 |
| Government Spending (percent GDP) | 22 | 23 | 13 |
| Inflation (Dec/Dec CPI pct chg) | 1.0 | 3.1 | 3.0 |
| Average exchange rate (Dh/$) | 9.5 | 9.7 | 9.7 |
| Foreign dept | 21,900 | 21,900 | 21,900 |
| Morocco’s economic growth rate has fluctuated at times by over 15 percentage
points between years of drought and plentiful rainfall. When exogenous
elements are factored out, however, Morocco’s growth has averaged
a modest but steady 4% throughout most of the past decade. The economic
impact of rainfall variation has led the government to invest heavily in
the water sector. In the past this focus was almost exclusively on
storage. Now growing interest in water treatment, conservation, and
wastewater re-use presents opportunities for U.S. environmental technologies.
EU firms are leaders in the Moroccan market, with the French dominant among them. Despite this, many Moroccan business and government leaders would welcome greater U.S. participation in the economy, particularly direct investment. U.S. firms with clear advantages in price or technology can be competitive, although a local partner can be useful in penetrating the market and, if necessary, overcoming any language barriers. The prevalent business language in Morocco is French, a result of past historic links with France. U.S. firms should be prepared to carry out business transactions, provide technical information and submit bids in French. ENVIRONMENTAL PROBLEMS The Moroccan Government’s 1995 Environmental Strategy highlights water, air, solid waste and soil as its top environmental priorities in order. Morocco is forecast to enter water deficit by the year 2020, and quality already is deteriorating due to the lack of industrial and domestic wastewater treatment. With only 5% of urban sewage being treated, Morocco needs treatment plants to serve the needs of 15 million people. Through the year 2011 the municipal waste water market is estimated at $5 billion. The government is unlikely to be able to fully fund these needs and has already contracted the water and electricity management of Casablanca to the French firm La Lyonnaise des Eaux. Air pollution in the urban and industrial centers is a growing concern, with concentrations of particulates, sulfates, nitrates, and airborne lead all rising sharply over the past decade. In 1997 French experts began a survey in Casablanca to quantify the extent of the problem more rigorously. Solid waste collection ranges from virtually nil in rural areas up to 85% in the major cities of Casablanca and Rabat. Even where collection is not a problem, disposal through uncontrolled dumping remains the norm. There are no specific provisions for industrial, toxic, hazardous and medical wastes, although larger medical facilities own and operate incinerators. Municipal waste totaled 3,700 thousand tons in 1992, of which 2% is recycled through the informal sector. Soil erosion causes an annual loss of 22 000 hectares of arable land. Deforestation contributes to this problem with an annual loss of 31,000 hectares of forested land, over two thirds of which is used for firewood. ENVIRONMENTAL BUSINESSES The environmental market in Morocco is growing rapidly, in tandem with an increasing awareness of the cost of environmental neglect. The Environment Ministry published a national strategy document in 1995 that estimated the economic cost of environmental degradation at 8.1% of GDP. The report suggested that an annual investment of 1.9% of GDP could lower this figure to 2.1% of GDP, for net savings of approximately $1.5 billion. While the market for environmental products is expanding, the government is not yet investing at the levels recommended in this report. A U.S. firm entering this market is likely to find established European competitors. As long as the U.S. company offers a clear advantage in price or technology, this should be no hindrance. A reputable local partner can be useful in conveying these advantages to the government or private sector clients. U.S. firms currently serving as principal contractors in USAID’s environmental activities include Chemonics, Environmental Alternatives Unlimited and Technical Support Services. BUSINESS OPPORTUNITIES Promising subsectors for U.S. firms operating in Morocco include: municipal and industrial water treatment; air pollution remediation (fixed and mobile source); water purification; municipal solid waste recycling and disposal; air and water monitoring and testing; environmental consulting; and alternate energy sources. The Water Sector
Air Pollution (fixed and mobile source)
Solid Waste
Environmental Consulting
LIST OF CONTACTS GOVERNMENT AGENCIES Ministry of Industry & Handicrafts
Contact: Abderrazak Mossadeq, Secretary General. Ministry of Economy and Finance
Tel: (212) (7) 76-01-47
Contact: Hassan Bernoussi, Director of Foreign Investment. Ministry of Territorial Development, Environment, Urban Planning and
Habitat
Tel: (212) (7) 76 02 62
Contact: Bani Layachi, Director General National Office for Potable Water (Office National De L’Eau Potable)
ONEP
Contact: Lachoucine Tijani, General Manager
Country Associations American Chamber of Commerce
Tel: (212) (2) 29-30-28
Contact: Dominic Demme, President. Association of Mining Industries
Contact: Abdelaziz Abarro, President. Moroccan Association for Engineering Consultancies
Contact: Rachid Balafrej, President
Country Market Research Firms Kilmer Investments
Contact: Robert Jennings, General Manager M.T.D.S.
Contact: James Lowenthal, General Manager. US Mission Trade Personnel American Consulate General Casablanca
Contacts: Kathy Kriger, Senior Commercial Officer
American Embassy Rabat
Contacts: Richard Johnson, Economic Counselor. Economic Section.
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