Major Moroccan firms woo Western African market, gate to larger market
Morocco-Regional, Economics, 3/2/2005

Moroccan leading companies are wooing the markets of the Economic and Monetary Union of Western Africa (UEMOA) which represents a basis to penetrate the larger market of 100 million inhabitants, the Economic community of West African States (ECOWAS).

Operating in such sectors as finance, pharmacy, public works and agriculture, Moroccan companies such as the financial groups BMCE Capital, Attijari-Wafabank, drugs company Sothema, have included this market of eight countries and 60 million inhabitants in their expansion plan. UEMOA, set up in 1994 musters Benin, Burkina Faso, Cote d'Ivoire, Guinea Bissau, Mali, Niger, Senegal and Togo

While they are not very numerous for the moment, they are, nonetheless, leading representatives of the Moroccan economy and plan to settle permanently in these countries, following the example of the successful Air Senegal International (ASI), fruit of partnership between Morocco and Senegal.

For Senegalese ambassador in Rabat, Ibou Ndiaye, Senegal "a stable country with a favourable business environment" can serve as a launching pad for Moroccan companies wishing to invest in the UEMOA and, later on, in the ECOWAS market.

ASI, a public Moroccan-Senegalese joint venture, like COMANAV, a sea transport company, which projects to open a branch in Senegal, provides examples of this south-south partnership of which the two countries are champions.

Another instance of this fruitful cooperation is BMCE Capital Dakar, set up in 2003, with the ambition to become "a reference in business banking in sub-Saharan Africa."

BMCE Capital Dakar was admitted as a management and brokerage company by the UEMOA financial markets and public savings regional council, says proudly an executive from the financial institution which has conducted recently a bond issue of some US$ 50 million, served as a financial counselling for the autonomous port of Dakar and the privatization of the National company of oil plants (Sonacos).

In the banking sector, Attijari Wafabank which opened a branch in Senegal wishes to support "our national (Moroccan) companies conquer new markets and develop retail activity, based on our expertise" says Wafaa Guessous, secretary general of the group in Casablanca.

The Moroccan enterprises' fondness for Senegal is ascribed, to the longstanding ties existing between the two capitals but also incentives offered to private initiative in the two countries.

While Morocco is keen to develop and diversify its outlets, Senegal is also making efforts to attract investors, as was highlighted by president Abdoulaye Wade when he visited Morocco in the morrow of his inauguration. He had then invited Moroccan enterprises to invest in his country.

CCGT Consortium, which specializes in construction and public works and in hydro-agricultural equipment, and has received US$ 12 million-worth of confirmed orders, has chosen to invest in Senegal which is linked to Morocco by a longstanding history of friendship, brotherhood and respect bonds, says the CCGT chief executive who prides himself with the success of operations and encouragements.

Meanwhile, the Sothema pharmaceutical group has also set up West Afric Pharma, a drugs plant, encouraged by the two countries' heads of state who launched last June the plant construction as a contribution to developing the pharmaceutical industrial production in Senegal through the transfer of the Moroccan company's know-how and technology.

With the new plant, Senegal which used to import up to 90% of its medicine needs will produce generic medicine to supply drugs not only to Senegal but to all of the seven other countries of the UEMOA.

However, a free-trade agreement with the Union will be most welcome by these companies which need political involvement.

"We have drafted a trade and investment agreement after five rounds of negotiations but the agreement, initialled in January 2002, providing for a 50% cut in customs tariffs was not yet ratified by the UEMOA ministers councils, regrets Moroccan minister of external trade, Mustapha Mechahouri, who ascribes the delay to unjustified fears that Moroccan exports will threaten local products.

The minister brushes aside these fears since products from these countries have free access to the Moroccan markets, in accordance with a decision made by King Mohammed VI in April 2000 to exempt from customs duties all imports from 34 African less-developed countries.

For Senegal's ambassador in Morocco, this delay in ratifying the FTA may be explained by the fears of some members countries experts that it would slow down the transfer of Moroccan small and medium-sized enterprises to the UEMOA market or to see the trade balance deficit widened. (MAP)SH

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