Seminar Opportunities in Morocco
Speech by Frank Heemskerk, minister for Foreign Trade at the 'Opportunities in Morocco' seminar.
Mr Maâzouz, ladies and gentlemen,
The Dutch feel at home in Morocco. That was certainly true some four centuries ago for Dutch sailor Jan Janszoon from Haarlem. Janszoon started out as a privateer [NL: kaper], and eventually settled in the Moroccan port town of Salé. There he rose to become admiral of the corsair fleet. His daughter tried in vain to persuade him to return to the Netherlands. But even his daughter's charms were not enough to make him leave Morocco.
So you can see that the good relations between our countries go way back. The fact remains that our countries have maintained good diplomatic relations for 400 years now. In 2005 we celebrated this in style. Isn't it remarkable that the Netherlands and Morocco signed the first treaty between a European nation and a non-Christian country? That treaty, from 1610, was about - what else? - freedom of trade and shipping.
In recent years, our trade relations have become noticeably closer. Your visit to the Netherlands, Mr Maâzouz, the first major economic mission we have had the privilege to receive from Morocco, provides yet more evidence that relations between our countries are scaling new heights.
The statistics prove the point: Dutch exports to Morocco have grown by fifty per cent since 2003, to almost half a billion euros. In recent years, Dutch companies have been importing more and more from Morocco too - although there's plenty of room for further growth. And the numbers continue to raise: the first figures for 2007 show that both imports and exports have risen by ten per cent!
It is striking that more and more Dutch companies are outsourcing parts of their production to a Moroccan partner. The Dutch health insurer Agis, for example, hires a firm in Casablanca to provide administrative support to process claims. The result? The number of errors is now a lot lower than it was in the Netherlands!
So the foundations of the Dutch-Moroccan relationship are strong. Let us now work to strengthen our ties even further! There's plenty of scope for doing so. It's a good sign that foreign investment in Morocco has doubled in the last five years. In 2006 foreign direct investment totalled 30 billion dollars. Yet the Dutch share - 116 million euros at the end of 2006 - is still modest. We can and must do better!
There are many unexplored opportunities for Dutch businesses in Morocco. I would like to see that change. And not only for economic reasons: I believe it is also important for the debate on integration. The stronger the economic position of Dutch Moroccans becomes, the more successful the process of integration will be.
Did you know that the Netherlands currently has 5000 entrepreneurs of Moroccan descent? And that 14% of them are women? They are in a unique position to build bridges between the Netherlands and Morocco, because they know the language and culture of both countries. In this respect, the presence of 350 thousand residents of Moroccan descent is a wonderful opportunity for the Netherlands! So let's make better use of Dutch Moroccans' expertise!
So why Morocco? Many of you already know the country well. Many of you understand what makes Morocco so attractive for Dutch businesses. I couldn't possibly list all those reasons. So let me highlight just a few of Morocco's selling points:
(1) First, Morocco is near by. It can be reached by road: from Spain you can cross the Strait of Gibraltar by ferry in 35 minutes! There are even plans for a tunnel.
Sure, wages in Morocco are highly competitive. Especially when you consider the current price of oil! Take Trojaco, which supplies custom-made suits to Society Shop and Van Gils. These suits are produced in Morocco, they are of excellent quality and transport costs are significantly lower than they would be if they were imported from India or China.
Incidentally, rising wages and not as low as China also have their advantages: purchasing power in Morocco is a lot higher than in India or China. This means yet more opportunities for enterpreneurs.
(2) The Moroccan climate is also fantastic: in the Netherlands you pay a great deal to heat commercial glasshouses, but in Morocco, the sun is often enough. This means the environment benefits too. Now there's sustainable enterprise for you!
A good example is Van Oers, which produces the Quality Beans brand. Karel van Oers first visited Morocco in 2002. He was so enthusiastic about what he saw there that he started growing beans in Agadir a few months later. He now grows sprouts [NL: spruiten], radishes, spring onions and herbs over an area of 640 hectares. And most of his crops can be grown in the open air.
(3) From 2012, businesses will be able to take advantage of a free trade area between Morocco and the European Union. In fact, import tariffs on both sides are already being phased out.
(4) The Moroccan government is following an active policy of encouraging business start-ups in Morocco. It offers help with getting through the administrative procedures, and has also introduced special 'free zones' that offer tax advantages to businesses.
When I say there are still countless opportunities in Morocco for Dutch enterprise, I'm thinking particularly about tourism, infrastructure and logistics, horticulture, sustainable energy and water, and education.
I would like to briefly discuss each of these sectors.
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Let's start with tourism. Over the next five years, the Moroccan government and private sector will be investing between 10 and 12 billion euros in new beach resorts.
The country's enchanting interior offers opportunities for sustainable tourism.
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What about infrastructure and logistics? Last July, King Mohammed opened APM Terminals' new container terminal in Tangier (APM Terminals is the Dutch arm of Maersk). As part of this Tangier Med project, there will be two more terminals in North Morocco and two more fiscal 'free zones'.
Did you know, incidentally, that Morocco will be one of the first African countries with a high speed rail link (a TGV)?
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Agriculture has for centuries been a vital part of the economy. Now many Moroccan firms have made the leap to become professional, modern organisations. This applies equally to the food processing and packaging industries.
Small wonder then, that the Dutch Grow Group chose Morocco as its base for growing cuttings [NL: stekken] for tomatoes, courgettes and beans, which they then export to France, Germany and the Netherlands!
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Where water is concerned, I see major opportunities for Dutch companies, which have barely been explored until now. Morocco suffers from water shortages, while the Netherlands' water companies and specialists are among the best in the world! The Moroccan government is currently working with companies to develop large irrigation, purification and water-supply projects. In late April, a group of Moroccan policymakers responsible for water management will be visiting the Netherlands.
Finally, I would like to mention some of the opportunities in the world of education. Morocco is currently working to introduce vocational training [NL: beroepsonderwijs]. That could be very interesting for Dutch educational institutions. But also for Dutch and Moroccan businesses: you all benefit from having well-trained staff, after all. Why not think about offering work placements [NL: stages] too?
Before I finish, I would like to stress that the Ministry of Economic Affairs is glad to offer support to companies that want to do business with Morocco, whether for the first time or with a view to expanding their existing operations. We have a number of different instruments available. To mention briefly the most important ones:
The programme 2g@there focuses on Dutch entrepreneurs who see opportunities abroad that require co-operation with other entrepreneurs.
That includes the Economic Cooperation Projects Programme, PESP for short, which is geared toward feasibility studies. Half the costs are paid for by the Ministry, the other half by Dutch and Moroccan partners.
The Emerging Markets Cooperation Programme, PSOM, finances pilots for investments. Here, too, the Ministry of Economic Affairs pays half the costs.
Then we have the Programme for Starters on Foreign Markets, that will soon be renamed prepare-2-start. Dat is een ondersteunende service voor startende internationale ondernemers.
Finally, our Agency for International Business and Cooperation, or EVD, can answer your questions about doing business with Morocco. The agency will shortly even be able to put you in touch with the right Moroccan partner. The EVD's website (www.evd.nl/marokko) offers plenty of information about Morocco.
Mr Maâzouz, ladies and gentlemen,
In closing, I'm delighted to be able to announce that I will be visiting Morocco myself from the first to the fourth of June. Together with State Secretary for Social Affairs and Employment Ahmed Aboutaleb I will be leading an economic mission that will include representatives from a number of educational institutions. During our stay there will be matchmaking opportunities for participants who are looking for Moroccan business partners.
Morocco is a magnificent country of great riches - in terms not only of its culture and people, but also its business talent and opportunities. It's hardly surprising that Jan Janszoon did not want to leave Morocco four centuries ago. I'd like to urge you all to explore the possibilities in the coming months, and then come with us to Morocco in June!
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Thank you. [Mr Maâzouz and] I will be very happy to answer any questions you may have now.