For his first trip since taking office as Minister of Investment, Convergence, and Evaluation of Public Policies, Karim Zidane chose Japan. Accompanied by the Director General of the Moroccan Investment and Export Development Agency (AMDIE), Ali Seddiki, along with representatives from the Caisse de Dépôt et de Gestion (CDG), the General Confederation of Moroccan Enterprises (CGEM), and Casablanca Finance City (CFC), the minister led a roadshow from November 25 to 27. The objective was to showcase Morocco’s strengths to Japanese companies and explore new opportunities to attract investors in the coming years.
Renew alliances
To this end, a memorandum of cooperation was signed by Karim Zidane and Japan’s Minister of Economy, Trade, and Industry, Yoji Muto. The objectives are to provide a platform for strengthening economic relations between the two countries, open new collaboration opportunities, encourage expertise sharing, and promote technology transfer to fully leverage the potential for cooperation in key strategic sectors, particularly the automotive industry.
« Our economic relations with Japan are not new. They were further strengthened with the entry into force (in 2022) of two agreements on investment promotion and protection, as well as the elimination of double taxation, which have solidified confidence in the national ecosystem. During this roadshow, we became aware of the strong interest Japanese companies have in Morocco and the advantages it offers today. We must capitalize more effectively on our strengths for a long-term, mutually beneficial partnership, » stated Ghita Lahlou, Vice-President of CGEM and Honorary Consul of Japan in Morocco, to TelQuel.
Among Morocco’s key advantages are its free trade agreements with the major European and American markets. Japanese companies are also drawn to the kingdom’s political and economic stability, its ties with neighboring African countries, and especially its young workforce, which could help offset Japan’s labor shortages due to its aging population, according to Ghita Lahlou.
« Morocco offers numerous advantages, including a highly skilled workforce and a strategic geopolitical position close to the powerful European market, further supported by the incentives announced for the Moroccan offer. On the other hand, Japan, lacking natural resources such as oil, has long developed a strong focus on conservation and recycling. Japanese technologies could therefore be valuable in addressing local challenges, particularly in energy efficiency and water resource management, » emphasized Masahide Honda, Director General of the Japan External Trade Organization (JETRO) in Rabat.
Underutilized potential
To date, Japan remains the largest foreign employer in Morocco. The 70 Japanese companies established in the kingdom generate over 50,000 jobs, more than half of which are in the wiring sector. Sumitomo, Fujikura Automotive, and Yazaki alone employ approximately 30,000 people. According to the Honorary Consul of Japan in Morocco, Japanese investors are showing increasing interest in sectors beyond the automotive industry, including renewable energy, aerospace, and rail.
However, significant potential remains untapped, both in terms of investments and the strengthening of trade relations between the two countries, as the trade balance remains heavily tilted in Japan’s favor. In 2023, imports from Japan increased by 13.8% compared to the previous year, reaching $269.37 million, primarily consisting of automotive parts. Meanwhile, Moroccan exports decreased by 35.4%, amounting to $300.53 million, mainly driven by agricultural and seafood products.
This imbalance largely stems from cultural differences and a mutual lack of awareness between the private sectors of both countries, which hinders collaboration and prevents better alignment with economic opportunities, regrets Ghita Lahlou. She calls for the creation of a Morocco-Japan Business Council capable of bridging this cultural gap and establishing dialogue channels between businesses from both nations. This would help keep companies informed about joint investment opportunities and encourage more frequent prospecting trips to facilitate connections between economic stakeholders.
« Japanese companies, particularly in the manufacturing sector, can contribute to improving Morocco’s international competitiveness and further expanding employment. However, these companies will not invest without access to new markets and clients. It is essential to build a mutually beneficial relationship today for both parties. We aim to act as a bridge between the economic players of both countries, considering the interests and preferences of the Moroccan government and local entrepreneurs, » explains Masahide Honda.
To further strengthen commercial ties between the two countries, the Director General of JETRO in Rabat also emphasizes the need to reduce the language barrier, which prevents a permanent dialogue between the two sides. « Many Japanese companies face challenges with French. It would be ideal to have more English-speaking staff in Morocco to facilitate smoother exchanges, » he concludes.
Written in French by Safae Hadri, edited in English by Eric Nielson
