Private Investment Climate of Morocco
From International Business Wiki
Morocco, located at the northern tip of Africa, is a developing country that has industries such as tourism, agriculture, phosphate mining, leather goods, textiles and construction. There are many factors the influence the rate of private investment in Morocco. According to the [US Department of State] , Morocco “actively encourages investment”. In 1995 Morocco created an investment code [1995 Morocco Investment Code] that applied equally to foreign and domestic investors, with the exception to a slight favoritism to outside private investors. In 2006, Morocco and the US created the [Morocco Free Trade Agreement] . This agreement eliminated all dutys and tariffs along with provisions for improving accessibility for American firms in the service industry in Morocco. Morocco also has many free trade agreements with Europe. Morocco’s conversion and transfer policies have a significant effect on its private investment levels. The [CIA Factbook] states that even with the help of the [IMF, [[http://www.worldbank.org/ / World Bank] and the [Paris Club] through structural adjustment programs, the [dirham] is only a fully convertible currency for current account transactions. The Central Bank of Morocco sets the exchange rates of the dirham against the dollar. According to the [Moroccan American Business Council] , there has been no known expropriations of business property since the 1970’s. The dispute resolution system set up for commercial disputes in Morocco consists of six commercial courts and three appellate courts. According to the [ICA Pilot Investment Climate Assessment] , the level of corruption in Morocco is relatively low, but the amount of bureaucracy and red tape seriously hinders private investment. Morocco’s rights to private ownership and establishment for foreign companies is very equal in comparison to domestic companies, except for the restrictions concerning the ownership of land used for agriculture. Morocco is a member of the [World Intellectual Property Organization] . According to the Moroccan American Business Council, the transparency of the regulatory system has improved through Morocco’s efforts to reduce the government role in the economy, the liberalization of the foreign exchange allocation system, and the import regime. Morocco has not succeeded in correcting deficiencies in the labor laws that restrict a firm’s ability to dismiss workers. In addition, the Moroccan American Business Council claims that the Moroccan banks are “generally sound” with the exception of limited competition with respect to deposit and lending rates. The CIA Factbook states that Morocco is politically stable and that the last instance of mass political violence was in December of 1990.
