Morocco plans training project in bid to lure offshore investors

2008-03-28

Morocco sees its potential as a "magnet" for foreign companies. To maximise its appeal to investors and benefit young people who are working for the first time, Morocco will pay the full cost of training thousands of new "offshoring" employees in 12 work specialities.

By Sarah Touahri for Magharebia in Rabat – 28/03/08

[casanearshore.com] Morocco is marketing itself as a destination for international operators. Five regions, including Casablanca, Rabat, Tangiers, Fez and Marrakesh, are set to welcome offshoring workers.

Many western companies have benefitted from cheaper labour costs by outsourcing work to foreign countries in a process known as "offshoring". To develop the offshoring sector and position the country as a premier destination for foreign businesses, Morocco plans a large-scale employee training programme to provide a ready supply of workers.

"This sector is at the heart of our interests, because it is bursting with development potential, due to the high demand for services which will come from European countries over the next ten years," Prime Minister Abbas El Fassi said after the first meeting of the new Offshoring Strategy Committee on Wednesday (March 19th). El Fassi, who chairs the committee comprised of government officials and business managing directors, added, "Morocco is a magnet for many companies who want to relocate."

The offshoring sector looks to play a big part in Morocco's goal of boosting GDP by more than 110 billion dirhams and creating 100,000 jobs by 2015. According to Trade and Industry Minister Ahmed Reda Chami, a large number of international operators have already established bases in the country and signed memoranda of understanding with the Moroccan government.

Five regions are set to welcome offshoring workers: Casablanca, Rabat, Tangier, Fez and Marrakesh. In Casablanca and Rabat alone, some 35 companies have already signed leasing contracts. "We have made huge progress in this field," Chami said, adding that the foreign business influx has enabled the creation of 5,300 jobs.

In order to grow this sector, however, a large-scale training initiative is needed, said a member of the new offshoring committee. Mohammed Lasri, who manages a business park entirely dedicated to offshore investors, told Magharebia, "We must work on the human resources aspect, so that we can have highly-qualified personnel capable of keeping up with the work over the long term."

A national programme for offshoring employees plans to train 22,000 graduates by 2009 in 12 work specialities. The Office for Professional Training and Work Promotion (OFPPT), the National Agency for Promoting Employment and Skills (ANAPEC) and Moroccan universities will partner with the state for the training initiative.

To benefit young people who are working for the first time, the state will pay the full cost of the training assistance programme. It could run as high as 65,000 dirhams per person over a period of three years.

Companies set up in the offshore zones will also benefit from a state contribution limiting the income tax burden for employees and total exemption from corporate tax for the first five years. Given the intense competition for offshore investment, these measures should put Morocco in a favourable position, officials say.

Economist Majidi Abderrahim agrees that Morocco will certainly be competitive. He argued, however, that the government should widen application of the incentive proposals. "We must also think about rolling out these positive measures to other areas not set aside for offshoring, so that investment is consistent."