Phosphate production influences Morocco’s growth in industry sector

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The production of phosphate rock and derivatives has contributed a significant role in the Phosphate production influences Morocco’s growth in industry sectorgrowth of the Morocco’s secondary sector despite difficult global economic conditions according to the most recent figures. The Global Arab Network stated that the government of Morocco is soliciting additional foreign investment in specific manufacturing segments to help boost industrial industry in the medium term with pressures to improve employment figures and increase household consumption as Oxford Business Group (OBG) reported.
Morocco is one of the world’s largest phosphate producers and the sector comprises the largest contribution to the country’s industrial gross domestic product (GDP). The first three quarters of 2012 noted an increased growth in value from Dh9.26bn to Dh9.71bn by the end of September despite the fell of the volume of unprocessed phosphate exports from 7.04M tonnes in 2011 to 4.87M tonnes in 2012.
The state-owned Office Cherifien des Phosphates (OCP) dominating the phosphate sector has engaged in a Dh130bn investment plan aimed at modernizing sector infrastructure and boosting production capacity form 30M tonnes to 50M tonnes by 2020. The OCP plans to oversee the construction of four new mines in Khouribga and Benguerir, expected to provide an additional capacity of 20m tonnes of phosphate rock per year.
Growth in the industry has attracted foreign investments such as the conclusion of financing agreements with the French Development Agency, the European Investment Bank, and the African Development Bank between May and October 2012. Another work on a 300-km mineral pipeline system with the capacity to transport 55m tonnes of raw materials to processing and export centres each year has been operational since April 2013.
The industrial infrastructure on phosphates is not the only sector that contribute to the growth in industry but also the manufacturing field, where in the 2010-11 period ranged from 5% increased in the values of shoes and electronics exports to more than 20% in aeronautic and automobile exports, according to the Observatoire Marocain de I’Industri (OMI) in September. To maintain healthy growth in the manufacturing fields is crucial to investors.