Thanks to its proximity to Europe, business friendly climate and sound infrastructure, Morocco offers an alternative to Japanese automotive manufacturers in a context marked with Post-Brexit uncertainties, the Asian Review wrote.
One of these companies, Sumitomo Corp aims at making of Tangier its entry into African industrial parks at stone’s throw from Europe
The Tanger Med port, the biggest in Africa and largest in the Mediterranean in terms of container capacity, is expected to reach an annual shipping container capacity of about 9 million 20-foot equivalent units in 2020 making any European port reachable within one week.
In this regards, the Japanese company was enlisted by The Tanger Med Special Agency to acquire five industrial parks spanning 13 square kilometers near the northern port of Tangier overlooking the Strait of Gibraltar.
“The two companies will consider a joint venture to create more such parks in the North African country,” the business publication said.
The Japanese company operates such parks in six Asian countries including Vietnam, Myanmar and India, and handles sales in four, including Thailand and Cambodia.
Morocco has heavily invested in developing its infrastructure and improving its doing business ranking. The country is home to Renault plant in the north and Peugeot in Kenitra near Rabat.
“Tanger Med and Sumitomo aim to attract manufacturers operating in Britain that are hunting for a new export base into the European Union as the UK’s drawn-out divorce from Brussels threatens to disrupt trade,” The Asian Review said.
Foreign direct investment in Morocco is on the rise, with Japan’s investment in the country soaring to 17.8 billion yen ($163 million) in 2018 from less than 1 billion yen the previous year.