Leveraging investment to create sustainable industrial parks in Morocco
April 24, 2023
Annie Thompson, Associate Director, Land and Agricultural Economy
Zaidoon Khouri, Director for Finance Investment and Trade
Well-managed industrial parks are the foundation of a strong manufacturing sector and a diversified economy. The Millennium Challenge Corporation’s Employability and Land Compact has fortified Morocco’s foundation to catalyze industrial and economic growth.
Industrial parks are areas that are zoned and planned for industrial development, rather than for commercial or residential purposes. The availability of well-located and well-run industrial parks, with high quality infrastructure and services, has been a major challenge to businesses looking to establish their operations in Morocco. To address this constraint, MCC invested $131 million in Morocco’s industrial land sector to introduce a market-driven blended finance approach for developing industrial parks, with a focus on good governance and long-term sustainability.
Thanks to this investment, Morocco has gained eleven new or improved industrial parks, from the north in Tangiers to the south in Agadir. In addition, the Government now has a better way of developing such parks that leverage private sector expertise and financing, respond to business demands, create jobs, and protect the environment.
Three industrial parks were developed or upgraded using a public-private-partnership (PPP) approach, with the public partner being represented by the Government of Morocco through MCA-Morocco. As such, MCA-Morocco prepared the project, provided the land at a discount, and constructed the major “off-site” infrastructure such as wastewater treatment plants, paved roads, and adequate lighting.
This public contribution is critical for making the sites attractive to a private developer, who will then invest their own financing to develop and market the industrial parks and ensure their long-term operation at high standards of service, environmental and social protection, and governance.