 Morocco to invest $7 bln to upgrade manufacturing
FES, Morocco, - Morocco unveiled a 62.4 billion dirhams ($7.29 billion) investment plan to upgrade its key manufacturing business amid the global crisis and lure more foreign investment, government officials said.
The 2009-2015 plan, which commits the state to invest 12.4 billion dirhams and private sector to expand operations by investing 50 billion, focuses in six eight industries ranging from avionics parts to electronics, textile and agrobusiness.
"This plan gives a visibility about the future and underscores the willingness of the government to back the some sectors which could be affected by the crisis," Finance Minister Salaheddine Mezouar told a news conference late on Friday.
The plan details 111 measures to be taken by the government and private business during seven years ranging from easy access to the credit, tax incentives, vocational training to improve worker skills, cutting red tape and corruption as well as developing more free industry zones for foreign investors.
"This plan reflects our vision to look beyond the current the crisis to improve the economy's competitiveness and attractiveness," added Mezouar, who was among several ministers and top business leaders addressing reporters on the plan.
King Mohammed presided over the signing of the plan, officially called National Pact for Industrial Emergence, by ministers and top bankers and business leaders at his palace in Fes to highlight the significance of the scheme for the economy.
The manufacturing sectors, the government is seeking to boost, account for fourth of the country's $53 billion economy and almost half of exports and employ 1.2 million workers.
The government expects the manufacturing business to create 220,000 new jobs, add 50 billion dirhams to the country's gross domestic product and almost double manufacturing exports to 205 billion dirhams when the plan ends in 2015.
Ministers and business leaders insist the global crisis would not have a big impact on growth this year, expecting the economy to expand by 6 percent versus 5.8 percent last year. "The plan aims at improving Morocco's offer for foreign investors. The plan looks beyond the global crisis and prepare Morocco to attract foreign investment when the global economy rebounds," said Ahmed Chami, the industry minister.
Rabat government cites local worker salaries, up to 10 times lower than average in Europe, and its closeness to European markets as its main advantages to attract foreign investors and grow exports.
It bets on free trade deals linking Morocco to the European Union and United States to make the North African country into a platform for trade investment.
Source:af.reuters.com | 
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