Faced with the sectoral crisis plaguing neighboring Portugal, Galician companies are looking for investment opportunities and are thus turning to Morocco to benefit from its comparative costs as well as its incentive policies.
In terms of textiles and leather, Morocco has become an attractive destination for foreign investments. Its competitive advantages and the prowess achieved by the Kingdom have ensured it a particular position on the international scene, to the point of becoming a hub for exports to Europe, Africa and the Middle East. Morocco has proven so attractive that today, Galician companies see it as a credible option to revive the textile sector which collapsed in Portugal, where 1,000 companies have closed down this year. A situation which caused a domino effect even affecting the Spanish neighbor.
Opportunities
According to reports, many Galician textile companies are looking for alternatives, particularly in Morocco and Turkey, with a view to alleviating the crisis. Note that the phenomenon of relocation of industries with low added value and high labor intensity was already affecting Portugal.
This situation highlights the fragility of European textile industries in the face of global competition and the need for strategic adaptation to face market challenges. The relocation of Galician companies to Morocco not only represents a response to the crisis in Portugal, but also reflects a broader trend of relocation for the sake of competitive production costs.
Certain advantages
In Morocco, the textile industry constitutes an economic pillar of the national economy, with more than 1,600 companies, nearly 190,000 employees and a sales volume estimated at five billion dollars annually. The Kingdom is committed to further developing its industry by implementing tax incentives and creating green zones dedicated to the textile and leather sector.
Furthermore, the environmental impact is not negligible. Thus, to prosper, the national “Dayem” vision, inspired by the directions of the New Development Model, advocates sustainability and innovation to explore all the potential and assets that the sector abounds with.
As a reminder, by 2035, the industry aims to increase the value of exports in the sector to MAD 60 billion and to reach a market share of 20%. The markets of North America and Northern Europe are particularly targeted.
Maryem Ouazzani / ECO Inspirations
