Marrakech Region: 3rd Economic Region in Morocco

Interview with Hamid Narjisse, President of Conseil de la région de Marrakech – Tensift – Al Haouz

What is the role of the region of Marrakech in Morocco? Can you present the region to our audience?

The region accounts for almost 5% of the area of the country and a little bit over 10% of the total population. From an economic point of view, the region contributes to almost 9% of the National Domestic Product, and almost 13% to the total Domestic National Agriculture Product. Besides, the region is first in some crops like olives, oranges production, for example.

The region is also important for tourism because it represents over one third of the tourism activity in the country. Also, the region of Tensift-Al Haouz, represents over 20% of phosphate reserves in the country. The region is also known for its handmade craft that represents 20% of the total exportation of handmade craft of the country.

Overall, the region with its 9% of the NDP ranks third after Casablanca (21%) and Rabat (13%). Our ambition is to move toward the second position. We have the means for that and we are moving in that direction.

Besides tourism, what are the other aspects the region should be known for?

The economy of the region is mainly based on tourism and agriculture. Unfortunately, that puts us in a very fragile situation since both sectors are known to be extremely fragile. Tourism can be impacted very quickly by the international context and agriculture by climatic conditions. Therefore, we can’t allow ourselves to stay in this situation and this is why we are developing a strategy of economic diversification.

We have identified six clusters of activities. Two of them, the traditional ones, agriculture and tourism, need to be strengthen. We also have great opportunities in term of food processing. So far, we have exported the raw food production without profiting of the added value that results from processing the food. We have identified the renewable energies as one of the very promising sector. The region is known for its wind and solar energy potential; everywhere you go there is plenty of light. I believe that we have the will, the potential and the ambition to become a leader in the use and development of those energies.

Renovated handcraft is also a sector that is going to be very developed. Already, we are mixing designers from North America and Europe with local artists. That creates a very interesting dynamics and we are becoming a very important player when it comes to exporting that kind of products to Europe and North America.

Next, the new technology of information and communications. The region is home to the second largest university of the country (35 000 students), to seven schools of engineers, in different areas of engineering, and to a very new university that is being built right now that will be focusing on environment, agriculture and renewable energies. Our ambition is to develop that field in the region because, in the years to come, we believe that we will have the infrastructure and the human resources need to be competitive in that sector. The first phase of the project will be built on 40 hectares near Marrakech and will start in 2013. We are working in collaboration with the minister of Commerce and Industry to build a techno-park in Marrakech as well that will accompany and support young entrepreneurs that are willing to develop business in the sector of innovative technologies.

How will you build this new image for Marrakech? A Marrakech known for its tourism, yes, but for its other sectors as well?

What we call ‘‘territorial marketing’’ is an important dimension of our strategy and we would like to take actions towards that goal.  First, we want to provide the true image of what we are. It is very important in the national context dominated by misconception and misunderstanding. We also want to emphasize on the major economic, political, and social reforms that this country has initiated in the last 15 years.

Morocco has also concluded three trade agreements with countries that represent a market of over one billion people. Most importantly, Morocco is the first developing country in the world that has taken the challenge to go and conclude a free trade agreement that include the food products with some superpowers. Despite all the risks, we believe that our future will be assured by open economy. We think we may suffer in the beginning but that we will profit down the road.

Those agreements concern the whole country, how will they affect the region of Marrakech?  How will you promote the region? What strategies are you going to use? Will you do something specific in the region?

What benefits the country, will benefit us. That means that international companies in the area of information and technology that establish themselves in the region will be offered a free of duty market of over one billion people. Also, we have Regional Investment Centers (RIC) that helps investors to establish in the country. That will help us redefine our image in the international context and help us export our products abroad.

Something specific to Marrakech and its surrounding is its rich historical and cultural heritage. The cities of Marrakech and Essaouira, for example, are listed among the UNESCO’s Organization of World Heritage Cities list. When you take that heritage, add the beauty of the natural sites of the region and the availability of qualified human resources I think we have all the pieces of the puzzle: the attractiveness of the region, in terms of history, culture, beauty of the sites. This is a beautiful region to be living in and this is why we have thousands of European households that come establish in the region, and we are very happy to welcome them because they contribute to the economy of the region and their presence is an enrichment to an already rich region.

What are the advantages you can offer to the international investors considering that your neighbours (Casablanca, Meknes, Rabat) also profit from those agreements; why choose Marrakech?

We have been able to develop a unique internal organization leading to a very special governance: a synergy between the different actors such as the elected counsels, the local authorities, and the representatives of the Moroccan government. Thanks to that unique organization, we have been able to develop a very special social program that is worth 850 million Euro, that will be completed within the next five years, with the goals of providing a universal access to drinkable water and electricity to all the inhabitants of this region, an adequate access to health and social services, and also an access to adequate housing. We have achieved those goals thanks to solidarity, synergy, and excellent work relationships and we will be able to face the challenges that lie ahead of us thanks to that synergy and work ethic.

How will this synergy benefit, in reality, an investor coming to the Marrakech region?

And investor is looking for transparency, visibility and a good working administration, they need to know what to expect and they want to have access to information. We are better than anybody else to provide that information and that kind of transparency. When an investor comes to this region, he becomes trusty of the people surrounding him and this is extremely important.

What challenges may affect the region in the future?

The first challenge is to build a strong human resources capacity, because this is where it starts and Morocco is not a country very rich in natural resources: we don’t have oil, we don’t have gas, and we import 97% of our resources of energy. So, it is very important for us to have the best human resources possible because this is where we are going to make the difference. For that, we have an excellent foremen university and an excellent vocation training system.

Second, you can’t have economic growth without a good social program that assures social cohesion, solidarity at work and that creates a safety net. You can’t have prosperity on one hand and extreme poverty on the other hand. It is critical that we continue to create jobs, and to create jobs it is necessary to identify new clusters of activities. That is the third challenge. In what extent are we going to develop activities that raise our competitiveness? Again, we can only be competitive by our creativity and the strength of our human resources.

Finally, the continuous improvement of infrastructures is also challenging. We have limitation in terms of roads, especially in rural areas, and we need to make a huge effort in terms of road construction, because this will allow us to open new development areas. Also we need to enhance the port of Essaouira and eventually the port of Safi because the regional commission suggests including two more provinces to our region, including the Safi province that has a big port.

To conclude, where do you dream to see the region in five years? What are you hoping to achieve?

I don’t just want to dream, I prefer to have a plan to make my dreams come true and in a near future I believe the region will be a productive and dynamic region. Nowadays we live in globalized world and, like I said before, we have concluded free trade agreements with countries that represent a market of more than one billion of people.

Competitiveness is an important thing for us, but a society that is only competitive will be out of breath soon or later. Therefore, it is important to assure social cohesion, solidarity among people, it is important to humanize development. Of course, we must be attentive to the environment issues since we are in an arid region and that arid region’s ecosystems are fragile. It is not just wishful thinking, it is our ambition and we have the mean to achieve our goals.