AfCFTA offers ‘significant’ opportunities for Morocco’s automotive industry – Report – The North Africa Post

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The African Continental Free Commerce Space (AfCFTA) settlement provides 4 vital alternatives to the Moroccan automotive sector, which is among the many greatest developed on the continent, particularly for its reasonably priced inputs, completed exports, advantageous labor, and diminished customs tariffs, the ninth version of the CFC Africa Insights report outlined.

The report, titled “AfCFTA: unlocking the potential of intra-African commerce,” means that elevated commerce integration with African companions, notably in North and West Africa, might result in economies of scale. Morocco is well-positioned to profit from the institution of cross-border worth chains, whereas the sector additionally holds promise for economies throughout the area.

In 2022, worldwide automotive commerce reached 1.6 trillion {dollars}, surpassing that of crude oil and pure fuel, the report notes. It additionally emphasizes how automotive provide chains, spanning throughout borders, enable quite a few international locations to contribute to car manufacturing.

Underneath the AfCFTA, the Moroccan automotive sector stands to realize two key alternatives, particularly entry to low-cost inputs and an outlet for completed items exports.

By integrating Morocco’s automotive sector with neighboring economies, Moroccan producers can capitalize on decrease labor and materials prices in Africa. The report highlights that Nigeria’s present tariff on unassembled vehicles stands at 5%, however is anticipated to lower to 0% by 2030.

This shift might generate employment alternatives in each international locations, enabling Morocco to export unassembled automobiles to Nigeria for additional processing.

The presentation of this report, collectively drafted by Casablanca Finance Metropolis Authority (CFCA) and Fitch Options’ BMI subsidiary, befell on Wednesday in Casablanca.

BMI economist John Ashbourne at CFCA’s CFC Insights convention attended the presentation together with Minister of Business and Commerce, Ryad Mezzour; Director Normal of Casablanca Finance Metropolis Authority (CFCA), Saïd Ibrahimi; and the Particular Consultant of the President of the African Growth Financial institution (AfDB) for the Africa Funding Discussion board, Yacine Fal.

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