TEXTILE
INDUSTRY
OCTOBER 2021
WHY MOROCCO ?
Large & rich textile …to serve the world’s …leveraging a unique combination ...in an overall attractive
industry… largest markets… of competitive advantages… environment for investors
• Large existing local market • Competitive lead time • Strategic position 14km to Europe • Green production with access
157k jobs • Trade Agreements with more • 1st sea connectivity in Africa to renewable energies and new
• 1bn items annual production than 50 countries eco-friendly Industrial zones
• Highly qualified and well-trained
• 7th largest supplier to Europe • International recognition workforce • Developement of the Upstream
from leading textile players industries through the use of
• An anchored historic know- • Attractive export costs new local raw materials as
how hemp
• Markets diversification
TEXTILE INDUSTRY OCTOBER 2021
TEXTILE INDUSTRY AT GLANCE
THE TEXTILE INDUSTRY IN 6 KEY FIGURES
27% 1bn PIECES USD 3.6bn
of industrial jobs produced annually export turnover
> 157K JOBS >1,075 12%
Among the 1 industrial
st companies of Moroccan exports
employer in Morocco
TEXTILE INDUSTRY OCTOBER 2021
STRATEGIC POSITIONING WORLWIDE
MOROCCO IS THE 7TH EXPORTER …SHOWING A ROBUST PERFORMANCE
OF APPAREL ITEMS TO THE EU… OVER H1 2021
MARKET SHARE IN EU IMPORTS (%)
S1-2021
1 CHINA 26,4%
2 BANGLADESH 20,7%
3 TURKEY 13.4%
4 INDIA 5.8%
5 VIET NAM 4.1%
6 PAKISTAN 3.7%
7 MOROCCO 3.6%
8 CAMBODIA 3.2%
+23.2% growth in textiles exports compared
9 TUNISIA 2.9%
with the same period of 2020*
10 MYANMAR 2.2%
11 OTHERS 14%
Source: HS codes 61 & 62 / Source: Trademap
*1st semester 2021
TEXTILE INDUSTRY OCTOBER 2021
MULTIPLE SEGMENTS WITH EXTENSIVE
PRODUCTION CAPABILITIES
A MULTI-SEGMENT POSITIONING (by value) EXTENSIVE CAPABILITIES
5% 10% 11% 13% 14% 25%
1bn ITEMS a year
SWEATER T-SHIRT DRESS SHIRT PARKA & JEANS &
JACKETS TROUSERS
Morocco’s total installed textile
production capacity
OTHERS: 22%
Source: Evalliance
TEXTILE INDUSTRY OCTOBER 2021
A UNIQUE COMBINATION
OF COMPETITIVE ADVANTAGES
CAPACITY TO QUICKLY ADAPT TO CHALLENGES SHORT LEAD TIME
• Swift reallocation of capacity towards health • 14km from Europe: Closest African country to
equipment during the pandemic (e.g. masks) the US and Europe
• High connectivity: The 1st transhipment
platform in Africa
SET OF GOVERNMENT INCENTIVES
• Government Subsidies TRADE AGREEMENTS
• Tax Free Zones • More than 50 free Trade Agreements
MOROCCO’S worldwide among which the US & EU
• Special Economic Zones
OFFER • Only African country having an FTA with
the US
ABUNDANT AND WELL-TRAINED WORKFORCE
SUSTAINABLE TEXTILE
• Large and young workforce
• Morocco’s proximity to the main retail markets
• Dedicated training centers & schools is an opportunity to a lower carbon footprint
• Predominantly feminine work force textile
Source: BCG Analysis
TEXTILE INDUSTRY OCTOBER 2021
HIGHLY QUALIFIED AND
WELL-TRAINED WORKFORCE
A LARGE AND YOUNG A PREDOMINANTLY FEMININE
WORKFORCE WORK FORCE
A DEDICATED TRAINING
1/3 of total Moroccan ECOSYSTEM Women represent 60% of
population between 20 and the Moroccan textile industry
45 years old Education offer from work force
production engineering and
manufacturing to fashion design
TEXTILE INDUSTRY OCTOBER 2021
STRONG TRADE TIES WITH US & EUROPE
FREE TRADE AGREEMENT MOROCCO – USA FREE TRADE ZONE EU28 - MOROCCO
SINCE 2005 SINCE 1996
Free access to the US Market:
Triple transformation rule
• Complete dismantlement of tariffs on textile products
• Products triply transformed on Moroccan soil can be
exported in the US with 0% tariffs
• Steps: Thread, fabric & garnment manufacturing
• Mandatory EUR1 certification
• Exception of the triple transformation for textile
products manufactured with cotton produced in
sub-Saharan LDCs
Pan-Euro-Mediterranean rules of origin
• Applied between Morocco & 42 countries, among which
• Morocco, the only African country having an FTA with EU, EFTA or Turkey
the USA • Enables the transformation of imported raw material
TEXTILE INDUSTRY OCTOBER 2021
COMPETITIVE LEAD TIME AT A GLOBAL SCALE
AN EASY ACCESS TO EU MARKET
LEAD TIME TO EUROPE: PRODUCTION & SHIPPING We have produced almost one million pieces since the beginning of this
year. All these items are made in Morocco and we present them in our
Moroccan stores as “Made in Morocco” items, and this is now a source
8 WEEKS of pride for us
Elif Cam
Director of Global Sourcing DeFacto Group
6 WEEKS
6 WEEKS
3 WEEKS At the time when the health crisis reached its highest level, we signed
a memorandum with the Ministry of Industry in July 2020, We chose to
settle in Morocco for its political stability, its privileged location and its
available and skilled workforce
OUTSOURCING FINAL PRODUCT
Cai Jie
Country Manager Omega Groue
Minimum lead time Maximum lead time
Source: BCG Analysis
TEXTILE INDUSTRY OCTOBER 2021
GOVERNMENT INCENTIVES
AN ATTRACTIVE INCENTIVE PACKAGE
GOVERNMENT SPECIAL GOVERNMENT
SUBSIDIES ECONOMIC ZONES SUPPORT
• Investment: tailor-made • Land, office space, and industrial • Support from Moroccan Investment &
offer for investors. plants in main economic zones Export Development Agency (AMDIE):
end-to-end assistance
• Recruitment & Training: financial • Financial support for building and
incentives to cover costs equipment
TEXTILE INDUSTRY OCTOBER 2021
A BRIGHT AND GREEN FUTURE
Green investment, today a strategic priority
UPSTREAM INDUSTRIES
GOVERNMENT SUPPORT MARKET DIVERSIFICATION
DEVELOPMENT
Access to competitive renewable Development of alternative raw Access to new markets as
energies materials scandinavian countries, Japan and
New law of the valorization of hemp United Kingdom
Availability of new eco-friendly
industrial zones generation
TEXTILE INDUSTRY OCTOBER 2021
