Rising costs and competition threaten Moroccan textiles sector

15/07/2008

Competition and the rising price of raw inputs threaten to kerb the success Morocco's textile market enjoyed in 2007.

By Hassan Benmehdi for Magharebia in Casablanca – 15/07/08

[Hassan Benmehdi] The Moroccan Association of Textile and Clothing Industries warned of a potential slowdown in the sector at their General Assembly meeting last week.

The Moroccan Association of Textile and Clothing Industries (AMITH) is sounding the alarm: difficult times may lie ahead for the textiles sector, the country's largest employer.

Speaking at an AMITH General Assembly in Casablanca on Tuesday (July 8th), The association’s president, Mohamed Tamer, said that although the textiles and clothing industry sector provided more than 213,000 jobs and saw strong growth in the quarter of the year, there is a risk of a major drop in production in the near future.

Textiles and clothing exports were down 2% at the end of May, he added.

Observers say the sector is expecting a crisis from sharp international competition and continually rising prices for raw materials, particularly energy inputs such as oil.

As the source of one third of Morocco's total exports, the need to save the sector from decline is urgent.

Jaâfar, a clothing manufacturer in Casablanca, told Magharebia that it is high time for the state to review its fiscal policy plans for the sector, in order to make it more competitive on the world market. He pointed to the example of Egypt, where he said state support led to a 13% increase in textiles exports in 2007.

Abdelkader El Kouhil, who owns a textiles factory in Casablanca, thinks the problem lies in a lack of professional training in recent years.

"This has had a negative impact on the competitiveness of Moroccan textiles and clothing businesses," he said.

One teacher at a Rabat textiles school indicated that the problem is circular. Students flee the training centres, he said, because they consider the sector to be going through a crisis.

Participants at the AMITH meeting also took the opportunity to assess progress made on the 2008 action plan, which centred on projects including Nassij MED, Vision 2015, Fibre Citoyenne, Maroc in Mode, Programme S2C, and Fashion and Design School. These action plans aim to improve competitiveness in order to allow the Moroccan textiles industry to hold its own against international economic risk factors.

Speaking at the conference AMITH Director General Mohamed Tazi made it clear that the association was aware of the many difficulties facing the sector. Real opportunities remain within the grasp of the Moroccan industry, he said, particularly if it transforms itself into a fashion industry. The geographical proximity of the European market is a determining element, he said.

AMITH President Tamer echoed that view.

"As long as Morocco remains 14km from the European continent, the sector will continue to do well."