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Key in your market entry strategy is some market research. Of course there are reports on market size and market growth, but often these are general. Specific knowledge on how your product is perceived and what your competitions is, is harder to get but more valuable.
Morocco is one of the further developed African countries, with an estimated population of around 37 million people, reflecting a blend of Arab, Berber, and African influences.
The Moroccan economy, with an absolute GDP per capita of approximately $3,400 USD as of 2023, is diverse and growing. The main economic drivers include agriculture, tourism, and manufacturing. Agriculture, particularly the cultivation of cereals, olives, and citrus fruits, plays a significant role in the rural economy. Tourism is also crucial, with Morocco’s historic cities, Mediterranean and Atlantic beaches, and mountain ranges attracting millions of visitors annually. Moreover, the manufacturing sector, especially textiles, automotive, and aerospace, is expanding rapidly, driven by foreign investment and government initiatives.
Morocco is increasingly becoming an important industrial player in the EMEA region due to its location as it serves as a stepping stone to Africa and the Middle East.
Having experienced an average growth of 4.4% in its GDP over the last 15 years, there are strong indications that its economic growth in Morocco will continue to improve. Being the third largest recipient of foreign investment in 2014, the nation is favorable for its financial services and telecommunication sectors.
Trade agreements have eased the state of imports as well as exports to and from other countries. Morocco has trade agreements with the EU, US, Turkey, and the Arab nations.
As per country data, top exports in 2019 were:
Morocco has also shown progress in the following areas:
Measures to strengthen the macroeconomic base have resulted in decrease in budget and current account deficits. Morocco has maintained its macroeconomic stability and shown positive growth. Morocco has maintained an average GDP growth between 5% and 10% from 2000 to 2014. It has kept inflation below 5% during this phase as well as reduced the public debt from 63% in 2015 to 66% in 2019.
Morocco is the leader in FDI in North Africa. Historic ties and close proximity to Western Europe, a proactive FDI policy and having more skilled workers available as compared to most developed markets have benefited Morocco. It is increasingly considered as a favorable gateway for investors from US and Europe to invest in the fast growing African continent. This is due to its stable business environment and support services, combined with good air links to many other African countries.
The most promising sectors in Morocco are as follows:
The best preparation for doing business in any country is visiting it. This way you can experience the culture, check the shops and build your network.
Where it comes to hotels, research shows that if you check these platforms, in 80% of the cases you have the lowest room rates.
If you have a consumer product that you can’t sell directly from your home country to your end customer, you need at least one step in between. This can be a distributor (who also acts as wholesaler or importer), a big retailer directly, or it can be a large web shop. Let’s look at the pro’s and con’s of each option.
For a B2B product that is not a commodity or for customized solutions the story is different. Here sales needs to be done in alignment with the department that actually delivers the service or that determines the price case by case. Also then you have three different options.
As counts for any country: you first have to define the target group that you want to sell to. If these are businesses, then you can reach out directly through emails and targeted advertisements, e.g. on LinkedIn. If this arouses interest and gives a sufficient response rate, then you may have found an easy way to get the market’s attention.
If your target group is more diffuse, or is a consumer group, then you have to rely more on advertising such as on Facebook or Instagram.
With the tooling of our partner Instantly.ai you can define your target group, whether it’s 50 or 50.000 people. Send them a sequence of emails, directly in their inbox, for typically under 10 dollarcents per persoon.
First determine who are the end-users of your product or service. And where do they buy it now? The best way to determine the right entry strategy is to approach these parties. Would they consider your product or service as an alternative? Do they agree with the positioning that you have in mind? And what competitors are they buying from now? These data will help you determine the right strategy.
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