Morocco’s Strategic Moves

Morocco Prioritizes Food Sovereignty

Minister of Agriculture Mohamed Sadiki made a compelling case for the substantial efforts being undertaken by his ministry to fortify Morocco’s food sovereignty and agricultural sector. His remarks were delivered during a seminar hosted by the National Rally of Independents (RNI) in the historic city of Fez, a venue chosen to underscore the government’s commitment to advancing agricultural and educational initiatives amidst evolving challenges.

Sadiki’s address focused on the multifaceted approach adopted by the Moroccan government to stimulate agricultural investment and bolster food security. He detailed how the COVID-19 pandemic, coupled with global economic disruptions, has underscored the need for strategic interventions in the agricultural sector. The pandemic has presented unprecedented challenges, but it has also acted as a catalyst for reassessing and enhancing Morocco’s agricultural policies.

In his speech, Sadiki emphasized the government’s proactive measures to mitigate the impact of inflation and restore citizens’ purchasing power. Addressing inflation remains a top priority, and the government has implemented several initiatives aimed at stabilizing prices and ensuring that essential goods remain accessible to the Moroccan population. These measures are designed not only to address immediate economic pressures but also to create a more resilient agricultural sector capable of withstanding future shocks.

One of the core components of Sadiki’s address was the government’s commitment to adapting the agricultural sector to the changing environmental conditions wrought by climate change. He elaborated on various strategies designed to address these challenges, including implementing innovative agricultural practices, investing in climate-resilient crops, and enhancing water management techniques. These efforts are essential for ensuring the long-term sustainability of Morocco’s agricultural sector and securing the country’s food supply.

Despite facing unforeseen obstacles, such as extreme weather events and global supply chain disruptions, Sadiki assured that the government remains steadfast in its pursuit of established programs. The administration is continually adjusting its strategies to align with the dynamic circumstances and to meet its long-term goals. This flexibility and resilience are crucial for maintaining progress and achieving sustainable outcomes in Morocco’s agricultural sector.

According to a 2019 report from the Ministry of Finance, agriculture holds a vital economic and social role in Morocco, accounting for approximately 38% of national employment and about 74% in rural areas. While the sector is no longer the largest employer as of 2024, it continues to play a significant role, with agriculture still representing the second-largest share of the labor force at 30%. This underscores the sector’s importance in providing livelihoods and supporting rural economies.

In addition to his focus on agricultural policies, Sadiki addressed the significant role that academia plays in supporting and shaping effective agricultural policies. He praised the contributions of university professors and researchers, highlighting their role in developing evidence-based and impactful policies that address the needs of the agricultural sector. The collaboration between the government and academic institutions is crucial for driving innovation and ensuring that policies are informed by the latest research and technological advancements.

Sadiki also stressed the urgent need for qualitative higher education, recognizing its pivotal role in advancing Morocco’s socio-economic development. He outlined planned investments in the higher education sector as part of the Fez-Meknes Regional Development Plan (PDR) 2022-2027. This ambitious plan has a total budget of MAD 30 billion ($3 billion) and reflects the government’s commitment to enhancing educational infrastructure and fostering academic excellence.

As part of this broader investment strategy, nearly MAD 2 billion ($200 million) will be allocated to modernizing university infrastructure, establishing new centers of excellence, and strengthening research and innovation capabilities in the region. This includes a dedicated budget of MAD 40 million ($4 million) for scientific research and the creation of specialized institutes in artificial intelligence located in Fez, Meknes, and Taza. These investments aim to position Morocco as a leader in technological innovation and to support the development of a skilled workforce equipped to meet the demands of the modern economy.

In summary, Minister Mohamed Sadiki’s address highlighted the Moroccan government’s comprehensive approach to strengthening food sovereignty and advancing agricultural and educational development. Through strategic investments, adaptive policies, and a focus on collaboration with academic institutions, the government is working to address current challenges and lay the groundwork for long-term resilience and growth. The ongoing commitment to enhancing Morocco’s agricultural sector and higher education system reflects a broader vision for sustainable development and economic progress in the country.

Riva Industries Invests $290M in Moroccan Steel Complex

Riva Industries, a leading Moroccan steel manufacturer, celebrated the launch of a groundbreaking integrated industrial complex in Jorf Lasfar. This monumental project, bolstered by an impressive investment of approximately 2.9 billion dirhams (around $290 million), represents a significant advancement in Morocco’s industrial sector.

The new facility, sprawling over 75 hectares, is designed to produce a wide array of metallurgical products. These include reinforcing steel bars, wire rods, large-diameter coils, steel ingots, and specialized steels. The complex aims to meet the growing demands of both domestic and international markets, positioning itself as a key player in the steel industry.

One of the notable features of this industrial complex is its potential to generate around 3,000 jobs, with 1,100 of these being direct, stable positions. This job creation is expected to have a positive impact on the local economy and provide a boost to employment in the region.

The strategic vision behind this project aligns with Morocco’s broader economic goals. The complex is poised to not only fulfill national demand but also to explore and expand into international markets, particularly in Europe and Africa. By focusing on high-quality, high-value-added steel products, Riva Industries aims to enhance Morocco’s industrial profile and competitiveness on the global stage.

During a visit to the new facility, Moroccan Minister of Commerce and Industry, Ryad Mezzour, expressed his admiration for the project’s completion. He highlighted that the industrial complex would significantly increase national production capacity and diversify Morocco’s steel offerings with a higher degree of local integration. Minister Mezzour emphasized that this initiative is in line with royal directives aimed at enhancing Morocco’s industrial sovereignty. This involves reducing the country’s reliance on imports while simultaneously boosting exports.

In addition to its core manufacturing capabilities, the complex features advanced auxiliary units designed to support its operations. These include state-of-the-art systems for sorting and processing ferrous waste, recycling water and emissions, generating clean energy through renewable stations, and producing essential gases and materials needed for the plant’s operation.

The commitment to quality and regulatory compliance is evident in the recognition Riva Industries received. The company was awarded a certificate of compliance with Moroccan standards for wire rods, a testament to its adherence to high industry standards and practices.

Overall, the launch of this integrated industrial complex by Riva Industries marks a significant milestone for Morocco’s industrial sector, promising to enhance national production capabilities, create substantial employment opportunities, and strengthen the country’s position in the global steel market.

Sound Energy Gets 24-Month Anoual Exploration Extension in Morocco

British energy firm Sound Energy PLC has announced a significant development in its Moroccan operations. The company has received approval from Morocco’s National Office of Hydrocarbons and Mines (ONHYM) for a substantial 24-month extension of its Anoual exploration permits. These permits are located in Eastern Morocco and cover a vast area of 8,873 square kilometers, reflecting the scale and potential of this exploratory venture.

This extension represents a crucial step forward for Sound Energy, but it is also subject to final endorsement by the Ministry of Energy Transition and Sustainable Development. If granted, this extension will substantially extend the initial exploration period, pushing it to January 2025. Furthermore, the complementary period, which is an additional phase of the exploration timeline, has been extended to September 2028. As a result, the total duration of the Anoual exploration permits will now extend to an impressive 11 years. This extended timeline provides Sound Energy with ample opportunity to fully explore and develop the resources within the permit area.

Under this agreement, the remaining work commitments for the permits, including those for the complementary period, remain consistent with the company’s prior announcements. Sound Energy has committed to fulfilling these obligations by drilling the M5 exploration well. This commitment is detailed in a statement dated August 9, 2022, which outlines the company’s plans for this critical phase of the exploration.

John Argent, Vice President of Geosciences at Sound Energy, expressed his gratitude for ONHYM’s continued support and underscored the importance of the forthcoming steps in their exploration program. “We are eagerly anticipating the necessary ministerial approvals that will allow us to proceed with the drilling of the M5 prospect,” Argent remarked. “This represents a significant opportunity to explore a potentially rich TAGI reservoir section, located within a large and promising structure at the heart of the Tendrara Basin. The potential for discovering a substantial gas reserve in this area is considerable, and we are keen to advance this exciting project.”

This extension follows a previous 18-month prolongation granted at the end of April this year, which demonstrates ongoing support and a positive trajectory for Sound Energy’s exploration efforts. The company’s strategic planning and persistence in securing these extensions reflect its commitment to maximizing the potential of its Moroccan assets.

In a notable recent development, Sound Energy Morocco East Limited, the Moroccan subsidiary of Sound Energy, has come under the umbrella of the Managem group. This strategic acquisition involves Managem taking a 55% stake in the Tendrara exploitation concession, a 47.5% stake in the Greater Tendrara exploration permit, and a 47.5% stake in the Anoual exploration permit. This partnership represents a significant shift in the operational landscape and is expected to bolster Sound Energy’s capabilities in exploration and production. The integration with Managem is anticipated to bring enhanced resources, expertise, and investment to the Moroccan operations, potentially accelerating progress and increasing the overall success of the exploration projects.

Overall, the approval of the extension for the Anoual exploration permits marks a critical milestone for Sound Energy PLC. It highlights the ongoing commitment to unlocking the potential of Morocco’s energy resources and demonstrates the company’s strategic focus on expanding its footprint in this promising region.

Stellantis Acquires Sopriam, Expands in Morocco

Stellantis, the prominent multinational automotive manufacturing giant, made a major announcement regarding its expansion strategy. The company revealed its decision to acquire Sopriam, a key subsidiary of the Al Mada group. This acquisition, which will unfold in two distinct phases, marks a significant step in Stellantis’ strategic plan to enhance its presence and operations in Morocco.

The acquisition process is set to commence with Stellantis gaining immediate majority control of Sopriam. The full acquisition is scheduled to be finalized by early 2025. This phased approach reflects Stellantis’ strategic planning and commitment to ensuring a smooth and effective integration of Sopriam into its global operations.

In a press release, Stellantis highlighted that this acquisition signifies a pivotal “new chapter” in the company’s ongoing efforts to strengthen its foothold in Morocco. This initiative is part of a broader strategic partnership with the Moroccan government, which was established in 2015 and has been instrumental in expanding Stellantis’ activities in the region. The partnership has facilitated significant investments and developments, positioning Stellantis as a major player in Morocco’s automotive sector.

Samir Cherfan, Stellantis’ Director of Middle East and Africa Operations, elaborated on the significance of the acquisition, emphasizing its alignment with the company’s long-term strategic goals. “The acquisition of Sopriam reflects our steadfast commitment to the development and growth of the automotive industry in Morocco. Our Stellantis factory in Kenitra has already achieved notable success, emerging as one of our most significant industrial sites. This facility is integral to our regional strategy, which aims to reach an annual production capacity of one million vehicles by 2030, with local integration exceeding 90%,” Cherfan stated.

The Kenitra plant, a cornerstone of Stellantis’ Moroccan operations, is poised for a major expansion. The company plans to double its production capacity from the current levels to 400,000 vehicles by 2027. This ambitious expansion is a testament to Stellantis’ confidence in Morocco’s automotive sector and its strategic vision for future growth. Cherfan also highlighted Stellantis’ goal to capture more than 22% of the Moroccan automotive market by 2030. This target is part of Stellantis’ broader strategic framework, “Dare Forward 2030,” which outlines the company’s vision for achieving industry leadership and driving innovation in the automotive sector.

Yves Peyrot des Gachons, General Manager of Stellantis Morocco, also weighed in on the acquisition, expressing enthusiasm about the potential benefits for the company and its customers. “We are excited about the acquisition of Sopriam and the opportunities it brings. Our commitment to providing a consistent and high-quality experience for our customers remains a top priority. With this acquisition, we will be able to offer an expanded range of vehicles and deliver increasingly innovative mobility solutions. Our goal is to ensure that every customer receives the high standards and customer-centric approach that Stellantis is known for,” Peyrot des Gachons remarked.

The Moroccan automotive sector has been experiencing a significant boost in recent years, attracting major international players. According to a report from Morocco’s Exchange Office, the sector grew by 12% to surpass MAD 67.4 billion (approximately $6.4 billion) by the end of May. This growth is driven by increased shipments in various sectors, including construction, wiring, and the manufacturing of vehicle interiors and seats. This dynamic environment presents a favorable backdrop for Stellantis’ strategic expansion and investment in Morocco.

Overall, Stellantis’ acquisition of Sopriam represents a major milestone in the company’s strategic expansion plans. It underscores Stellantis’ long-term commitment to strengthening its operations in Morocco and advancing its position within the global automotive industry. The acquisition not only highlights the company’s confidence in Morocco’s growing automotive sector but also sets the stage for future growth and innovation in the region.