The building materials sector is of significant importance to national industry due to its relationship with the other economic activities, and most particularly with building, tourism, and infrastructure work.
In recent years, with the sector policies pursued by the government in housing, tourism, and the growth-driving industries, the building materials industry has seen an unprecedented development that the Industrial Acceleration Plan means to maintain and strengthen.
Professional federation of the sector:
Federation of Construction Material Industries (FMC)
Main companies of the sector:
LAFARGE MAROC, CIMENTS DU MAROC, SUPER CÉRAME, ROCA, GRANIMARBRE, BRIQUETERIE SLAOUI, SADET
Ecosystems of the sector
Ecosystems, are designed to reduce sectoral fragmentation and to promote integrated development of industrial activities. The aim is to integrate the local industrial fabric around leading companies by encouraging mutually beneficial partnerships with SMEs, first by acting as catalyst and second by providing perspective and visibility, which in turn bring creativity, a sense of innovation and dynamism.
Appropriate and targeted support is provided to companies in the ecosystems regarding finance, industrial land and training.
The Industrial Development Fund (FDI), operational since 1 January 2015, allocates 3 billion dirhams per year for the period 2014-2120 to ecosystem companies to enable them to realize their ambitions in upgrading, development and internationalization.
State support is also backed up with integrated and competitive bank financing.
The ecosystem companies can also:
In the framework of the Industrial Acceleration Plan an agreement was signed with the Federation of Construction Materials Industries (FMC) for the creation of industrial ecosystems around quarries to add value to material extraction, consolidate the position of the sector, and improve its contribution to the domestic industry.
With this in mind, a partnership between the Ministry of Industry, Trade, Investment and Digital Economy, and the Ministry of Equipment, Transport and Logistics intends to create a network of industrial ecosystems for a better exploitation of quarried materials in areas with large deposits, particularly in the provinces of Ben Slimane, Taza, Sefrou, Sidi Ifni and Es-Smara.
A performance contract was signed on 23 March 2016 in Rabat by the Minister of Industry, Trade, Investment and the Digital Economy, Mr Moulay Hafid Elalamy, the Minister of Economy and Finance, Mr Mohammed Boussaid, and the presidents of the professional associations of the sectors concerned.
This ecosystem, which involves five sectors (prefabrication, ceramics, marble, steel and cement), will contribute by 2020 to :
The development of this ecosystem is expected to address the issues relating to the industrialisation of the sectors, improve competitiveness for import/export and reduce energy costs (developing use of biomass and household waste), to make up for the shortcomings of the sector, particularly the weak value-creation of some activities, the inadequate balance between available training and the sectors' needs and the lack of innovation in construction products.
- Have access to quality industrial land thanks to the innovative concept of industrial rental parks;
- Benefit their employees through relevant staff training courses.
- Create 28,0000 additional permanent industrial jobs, of which 16,000 will be direct;
- Generate 10.1 billion dirhams in additional revenue;
- Create 2.9 billion dirhams worth of additional industrial added value;
- Achieve a positive impact of more than 4.8 billion dirhams on the balance of payment; 3.5 billion dirhams for exports and 1.3 billion dirhams for imports substitution.
- Generate an investment of about 2.75 billion dirhams for the sector.
Assistance and support
1. Support for the sector’s ecosystems
The support provided by the State for the benefit of the enterprises of the "building materials industries " ecosystem includes a range of measures tailored to the needs and expectations of operators:
The normative dimension will also benefit from such developments as norms will be strengthened, with the implementation of an efficient monitoring system as well as the systematic control of standards in the public procurement market.
2. Investment Promotion Fund (FPI)
Under the Investment Charter, the FPI offers partial coverage by the Government of certain expenses related to the acquisition of property (up to 20% of the cost of land), external infrastructure (up to 5% of the total amount of the investment programme, or 10% in the case of an investment in the sector of spinning, weaving or finishing) and vocational training (up to 20% of the cost of the training).
These contributions may be combined as long as the total contribution of the state does not exceed 5% of the total investment programme; or 10% in the case of investment in the sector of spinning, weaving or finishing; or when the investment project is located in a suburban or rural area.
The investment project must meet at least one of the following five criteria:
3. Tax incentives
Tax incentives are provided for by article 123-22°-a) of the General Tax Code and Article 7.1 of finance law No. 12-98 for the 1998/9 budget year as amended and supplemented by the following:
3. Tax incentives
SMEs in the sector may benefit from special support within the programmes developed by the National Agency for the Promotion of Small and Medium-sized Enterprises (ANPME):
5. Free zone status
A free trade zone (ZFE) is a specified area of land devoted to export activities for industrial purposes and related service activities. Each free zone is created and delimited by a decree that determines the nature and business activities that can be established there.
The operational free trade zones are located at Tangier (Tanger Free Zone – TFZ and Tanger Automotive City – TAC), at Kenitra (Atlantic Free Zone – AFZ), at Casablanca (Midparc), at Rabat (Technopolis) and at Oujda (Technopole d’Oujda).
To obtain free zone status under law No. 19-94, companies must have obtained authorization from the local commission of the free export zone, which is presided over by the wali or governor of the region, and must make at least 70% of their turnover from exports.
Free zone status allows for the exemption of foreign trade and exchange controls, as well as access to the following state aid:
Tax incentives resulting in:
- Access to attractively priced property, with the provision of 210 hectares of rental property;
- Arranging a training plan covering 100% of the ecosystem's needs;
- Arranging a joint government approach/process for managing marble quarries;
- Proactive help for investors in the recovery of household waste;
- Support for the structuring of the ship dismantling industry.
- Represent an amount of 200 million dirhams or more over a 3-year period;
- To be located in one of the provinces or prefectures mentioned in Decree No. 2-98-520 dated 5 Rabii I 1419 (30 June 1998);
- Create a minimum of 250 stable jobs over 3 years;
- Provide technology transfer;
- Contribute to the protection of the environment.
- The exemption from import duty on capital equipment, materials and tools necessary for the implementation of an investment project with a total cost greater than 200 million dirhams during 36 months after the signing of the investment agreement; this exemption is extended to parts, replacement parts and accessories imported at the same time as the aforementioned equipment;
- The exemption from VAT on imports of capital equipment, materials and tools necessary for the implementation of an investment project with a total cost greater than 200 million dirhams until 36 months after the start of activity by the company or from the date of issuance of the building permit, and which may be extended by six months in the event of force majeure (renewable once); this exemption is extended to parts, replacement parts and accessories imported at the same time as the aforementioned equipment.
- Exemption from income tax (IR) during the first 5 years, and then a reduction of 80% of tax on gross earned income during the following 20 years;
- Exemption from corporation tax (IS) for the first 5 years, and then a rate of 8.75% for the following 20 years;
- Exemption from professional tax for the first 15 years;
- Exemption from urban tax for the first 15 years;
- Exemption from participation in national solidarity;
- Exemption from tax on income from corporate rights, dividends and similar income for non-residents and a reduction in tax to 7.5% for residents;
- Exemption from import duties, and simplified customs procedures;
- Unlimited exemption from value added tax in respect of products delivered and services supplied to the free export zones and from the subjected territory;
- Exemption from registration fees and stamp duty on instruments of incorporation or increases in the capital of the company, as well as on land acquisitions;
- The establishment of a one-stop service to the investor.
The training of human resources is a strategic activity of the Industrial Acceleration Plan (IAP) 2014-2020. The availability and quality of human resources determine the attractiveness of Morocco as a destination, and increase the productivity and competitiveness of the companies.
Amongst other things the strategy aims at providing the ecosystems in place with skilled profiles.
The detailed mapping of training needs - with a quantification of the human resource requirements by sector, profile, region and year - and the identification of training opportunities available in Morocco are ongoing, which will enable the development of a national training plan.
In the framework of the Industrial Acceleration Plan, the Ministry plans for the mobilization of 1,000 hectares to create Integrated Industrial Rental Parks (PIL) with turnkey premises: each park will include a one stop shop for administration, a local job pool, ad hoc services and a training programme.
In parallel general and sectoral Integrated Industrial Platforms (P2I), possibly benefiting from the free zone status, guarantee the availability of property at an attractive price, comprehensive and diverse real-estate and logistics options conforming to the best international standards, as well as on-site services and a one stop shop for administration.