Morocco's government has announced plans to accelerate the development of local production to reduce the country's trade deficit. According to Minister of Trade Omar Hejira, the government aims to encourage the local manufacture of products currently imported, diversify export markets, and expand the base of exporting companies. This move comes as the country's imports are growing faster than exports.
The Minister announced the extension of the Foreign Trade Roadmap 2025-2027 until 2031, with new programs integrated to support the development of local production. The roadmap aims to strengthen the country's industrial capacities and reduce its dependence on imports in sectors where local production can be developed. Morocco has significant industrial capacities that can be leveraged to produce some of the goods currently purchased abroad.
Omar Hejira highlighted that the country has a substantial bank of industrial projects that can be accelerated in collaboration with the private sector. The government plans to support national companies that can meet the needs generated by large-scale investments in infrastructure, such as highways, rail transport, airports, and sports infrastructure. This will help limit the country's reliance on foreign suppliers for certain product categories.
However, the Minister noted that Morocco's import structure limits the potential for immediate reduction in foreign purchases. Approximately 69% of imports are difficult to compress, as they relate to hydrocarbons, cereals, equipment, and inputs necessary for national industry. Despite this, the government remains committed to encouraging local production of some of these products.
The government's strategy focuses on strengthening local industrial integration while gradually reducing reliance on foreign suppliers. The Minister emphasized that increasing exports is crucial for creating jobs, improving company revenue, and enhancing the quality of national products. This, in turn, will support the development of Morocco's industrial capacities.
Omar Hejira also highlighted several structural imbalances in Morocco's trade, including a strong geographic and sectoral concentration of exports. The government aims to address these imbalances by diversifying export markets and expanding the base of exporting companies. The extension of the Foreign Trade Roadmap until 2031 will help achieve these goals.
The government's efforts to boost local production and reduce the trade deficit are critical to Morocco's economic development. By supporting national companies and encouraging local production, the government aims to create jobs, improve the business environment, and increase the country's competitiveness in the global market. The success of these initiatives will depend on effective collaboration between the government, private sector, and other stakeholders.
Key points
- Morocco plans to extend its Foreign Trade Roadmap until 2031 to support the development of local production and reduce the trade deficit.
- The country's import structure limits the potential for immediate reduction in foreign purchases, with 69% of imports difficult to compress.
- The government aims to encourage local production of products currently imported, diversify export markets, and expand the base of exporting companies.
