FOM Newsletter Fall 1999: News Round Up   10/28/99 

DOMESTIC COMPANIES SEEK EQUAL TREATMENT.  FOREIGN FIRMS ACCUSED OF UNFAIR PRACTICES

The cancellation of the contract for the extension of the Agadir fishing port has revived the debate on competition between domestic and foreign companies, and in particular those involved in the construction sector.

Major Labor Agreement Signed by Spain and Morocco A major labor agreement was signed this month between Morocco and Spain. The agreement places the Moroccan population that regularly crosses the northern border under the protection of Spanish law. This agreement is expected to reduce the level of migration, but would also regulate the entry of workers into a continent in desperate need of a fresh and young labor force.

The Moroccan government and Maroc Phosphore, a wholly owned subsidiary of the phosphate company OCP (Office Cherifien des Phosphates) signed an agreement last week which would provide exoneration of customs tax, value add tax and other types of taxes. The agreement between the government and Maroc Phosphore was conducted in the context of the current finance law, which focuses on providing incentives to investors that invest DH 500 million or more.  Prime Minister Youssoufi signed the agreement during a ceremony in Rabat with the presence of Fathallah Oualalou, the finance minister, Youssef Tahiri, the energy and mining minister, and Alami Tazi, the trade minister. Representing Maroc Phosphore was its CEO Mourad Cherif.  The agreement is set to accompany a series of investments to be made by the company in Safi and Jofr Lasfar. The company is estimated to spend DH 2.5 billion this year and in 2000. The purpose of these investments is to increase output of phosphoric acid and fertilizers. A percentage of the investments will be dedicated to environmental clean-up and protection projects. Output of phosphoric acid will be raised from its current level of 2.8 million tons to 3.2 million tons per year, while fertilizer output would rise to 2.1million tons, up from 1.7 million tons today.  The largest share of the investments (DH 1.85 billion) will be in Safi and the remaining will be invested in Jofr Lasfar.  Through these investments, Maroc Phosphore seeks to strengthen its position in the international market.

The Moroccan government is selling a majority stake of 51% of the Fertima fertilizer company. The 1.173 million shares of Fertima are expected to raise DH 230 million. Labor Affairs/Cooperation Spanish and Moroccan Trade Unions Discuss Cooperation Labor organizers from Morocco and Spain held their second meeting. The meeting, known as  Interreg-2,was organized by the European Regional Development Fund, the Andalusian labor organization, the Andalusian government and the Tangier-Tetouan region.  Interreg-2 followed the first meeting held last April in the city of Malaga, Spain. Both meetings focused on labor issues and cooperation between trade unions.  Both Spanish and Moroccan representatives made recommendations to set up bilateral organizations that would promote development projects in northern Morocco, utilizing the experience of Spain. Common projects may include tourism, the fisheries sector and agriculture.  But most the debate has focused on human migration and the promotion of immigrant rights.

German Company to Manage Atlantic Palace Palm Dorint Hotels & Resorts was hired to manage the Atlantic Palace, a five-star hotel in Agadir.  Palm Dorint Hotels & Resorts is a German hotel chain with sites primarily located in Europe.  With a capital of DH 3.5 million, Palm Dorint Hotels & Resorts-Morocco will be led by Rochdi El-Bouab, the founder of the Kenzi Hotels. He will be aided by a German Vice President, Wolfgang Von Hagen. The hotel's managing director is expected to be Gunter Fischer. Hicham Ouahdani was appointed head of marketing.  With El-Bouab, who established and managed a 17 hotel chain in Morocco and the German chain which has over 130 hotels and 30,000 rooms in Europe and North America, Dorint Hotels & Resorts hopes to grow its business in Morocco and compete with well established names.

Three regional banks known as Banques Populaires signed a merger agreement in mid-September. The Banques Populaires are those of Agadir, Ouarzazate and Tiznit. The merger agreement was signed in the presence of the Chairman of the Groupe Banque Populaires, Mr. Abdallah El-Maaroufi. The event is considered another step toward further consolidation for the banking institution.  The new unit will be called Banque Populaire du Centre-Sud and will cover the Souss-Massa-Draa region. The merger will allow the new bank to benefit from an economy of scale in assets and capital and is expected to improve its financial performance. The bank will focus on high growth industries throughout the region, namely agriculture, fisheries, tourism, and the traditional craft industry.  The new bank will have 34 branches and 567employees.

The head of the tourism promotion office Office National Marocain du Tourisme (ONMT), Samir Khaldouni Sahraoui, will soon leave his job as CEO for a new position abroad. Mr. Sahraoui was appointed President of the ONMT in November 1997.  In a recent press conference, Sahraoui listed the achievements of the ONMT and the tourism sector in Morocco under his leadership.  He said "the number of tourists who visited Morocco during the 1999 tourism season reached 2.5 million, representing a 57% increase compared to 1996." He warned, however, "lodging capacity remains limited and risk to jeopardize growth in the sector."

The first Morocco-Spain agricultural forum was held earlier this month in Casablanca. The forum saw the participation of professionals of the agricultural sector, and government officials of both countries including Habib El-Malki, the Moroccan minister of agriculture and his Spanish counterpart Jesus Posada Moreno.  The forum focused on bilateral cooperation, including the difficult topic of fisheries and the fishing agreement between Morocco and the EU.  El-Malki reiterated his country's decision not to renew the agreement last month, a position that was confirmed by Moroccan Prime Minister Abderahman Youssoufi during his recent meeting with the governor of Andalusia, Manual Chavez.

Return to Friends of Morocco Home Page