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Morocco: Leather sector to generate 70% of the industrial growth

- Mohammed Almasri

Sunday, 27 June 2010 14:39

The leather sector covers three main activities: footwear; leather made cloths and goods; and tanning and tawing. Strongly oriented towards exportation, footwear is considered as the most significant industry. Leather made cloths and goods activities are more oriented towards the local markets.

The leather industry has a great export potential. Being an integrated part of the Emergence Plan, this industry is considered as one of the 8 Moroccan worldwide businesses which should generate 70% of the industrial growth by 2015 to achieve three objectives: stimulate growth, create a strong industrial sector and consolidate foreign currency inflows. As such, it is part of the National Pact for an Advanced Industry adopted by the government.

Six initiatives aiming at creating a favorable environment for investment were encouraged to enable leather and textile industries to develop their respective potentials:
1.    A development plan for export opportunities
2.    An adaptation program for actors in terms of export market development
3.    A plan for an aggressive development on the national market
4.    A modernization system for companies operating in the sector
5.    A training program tailored to the sector
6.    A plan to improve conditions in the sector

Dedicated to exportation, the leather sector in the Export Plus Plan seeks greater international openness and relies on several approaches:
•    Diversifying products,
•    Increasing quality
•    Sub-contracting
•    Products with high added value
•    Creativity
•    Service quality.

The strategy is founded on the many advantages Morocco offers:
•    Strategic geographic situation
•    Long tradition in the leather sector
•    International standards relative to environmental protection
•    Availability of raw material
•    Permanent logistic organization
•    Internationally recognized know-how
•    Trained and competent workforce
•    Simplified customs procedures
•    Several free trade agreements: with the European Union, USA, Turkey, Tunisia, Egypt, Jordan.
The leather sector is a high potential sector in the Moroccan industry.

Key figures
The leather industry, traditional sector in Morocco, has grown considerably since the 1980s and currently plays an important role in the economy.

In 2008, the sector registered a production of 227.23 million Euros, bringing its share in the overall production of transformation industry to 0.8%.

The added value reached 82, 59 million Euros, i.e. 1.2% of the generated total of the transformation industry. It is to be noted that the footwear activity is the first category in this sector. It contributes with 80% (65.9 million DH). Leather made cloths and goods contribute with 9% (8.8 million DH) while tanning and tawing branch worth 7.6 million Dirhams.

In 2008, the sector of leather and leather made products achieved 259.8 million Euros.

In 2008, the industry of leather and leather goods counted 360 companies and employs more than 17,500 employees, i.e. 3.48% of the transformation industry.

From 2003 to 2007, investments varied significantly from one year to another. However, they recorded a decline in 2008 (-36%).

The share of footwear branch, being the first investment contributor in this sector and industry, is maintained. With 7.63 million Dirhams in 2008, this activity recorded a total of 84.7% of investments in the sector. Tanning and tawing branch registered 9% (800,000 DH) of investment, while leather made cloths and goods reached 600 000 DH.

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