2024-02-24 07:21:08
The African Continental Free Trade Area (AfCFTA) agreement offers four significant opportunities to the Moroccan automotive sector, which is already one of the most developed on the continent, namely affordable inputs, finished exports, a workforce advantageous work, and reduced customs tariffs, emerges from the 9th edition of the “CFC Africa Insights” report.
Greater commercial integration with African partners (particularly in North and West Africa) might create economies of scale, and while Morocco is particularly well placed to benefit from the creation of cross-border value chains, the sector also offers opportunities to the region’s economies, indicates this report on the theme “AfCFTA: harnessing the potential of intra-African trade”.
And to highlight that in 2022, international automotive trade totaled $1.6 trillion, surpassing that of crude oil and natural gas, and that automotive supply chains, extended across borders, enable many country to contribute to the production of vehicles, reports MAP.
The AfCFTA thus offers two key opportunities to the Moroccan automotive sector as a source of low-cost inputs and destination for exports of finished products, notes the said report prepared by Casablanca Finance City Authority (CFCA) and the BMI subsidiary of Fitch Solutions.
By integrating Morocco’s automotive sector with neighboring economies, Moroccan producers can benefit from lower labor and material costs in Africa, the document notes, specifying that Nigeria’s current tariff on unassembled cars is 5 %, but is expected to increase to 0% by 2030.
This would create jobs in both countries, providing an opportunity for Morocco to export its unassembled vehicles to Nigeria for processing, it is expected.
This edition of the “CFC Africa Insights” report was presented Wednesday in Casablanca by BMI economist John Ashbourne during the CFCA “CFC Insights” conference, marked by the presence of the Minister of Industry and of Commerce, Ryad Mezzour, the director general of Casablanca Finance City Authority (CFCA), Saïd Ibrahimi, and the special representative of the president of the African Development Bank (AfDB) for the Africa Investment Forum, Yacine Fal.
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