As you all know, Morocco has very close economic ties with Spain, to the point that we are the leading exporter to Morocco, having overtaken France, which for many years was its main trading partner.
Morocco is a market that is growing considerably in recent years, especially in several major sectors such as agriculture, automotive, infrastructure and services.
At Onura, in fact, we have been working for several years in specific niches, hand in hand with leading Basque companies such as the food, wind, water and automotive industries.
Morocco is a purely importing market, but being a market of opportunities, due to its growth, not all companies have potential in the short term and it is therefore advisable to analyse, always on the ground, the "micro" reality as far as each company is concerned.
- In our experience, even though Morocco is evolving rapidly, there are still processes that prioritise "productivity" for which it is not sufficiently mature. Thus particularly technical products have narrower market shares, except in specific cases..
- It is also a market where local presence and face-to-face contact with customers/buyers is very important to build a relationship. This means that with local competition it is difficult to go direct from European markets and in many cases it is advisable to find a local partner or at least have staff on the ground.
- In multinational environments many of the decisions are still made at headquarters, but this is changing and management teams are gradually taking more responsibility. It may be a good time to position oneself locally, perhaps with little short-term live business, but with medium-term potential.
- Obviously, in everything to do with infrastructure, the public sector at both regional and national level has great influence when it comes to preparing tenders and approving suppliers. There are also a significant number of local and foreign engineering companies with local offices and staff that should be taken into account.
Current situation and expected developments.
Currently, as in all markets: Uncertainty, but with activity..
The current reality is that it is not a good time to close sales, but it can be a very good time to start working towards 2021.
According to analysts, GDP in 2020 will fall by 3-5% due to the COVID effect, pointing to a growth rate in 2021 of 4-5%.
In the current situation:
- Companies are in most cases open to meet new potential suppliers, as long as we have, as in all markets, a competitive product for the time of the market.
- As a general rule, decision-making has slowed down.
- In the short term, in view of the uncertainty at the borders, local suppliers are being given priority and changes of supplier, especially if they are "foreign", have been "paused".
Therefore, although it is not a good time to generate sales in the short term, it is a good time to initiate relationships, which will form the basis of sales in 2021.