News
Wednesday 30 May 2018

Morocco Strives to Overtake South Africa as Home of Africa’s Biggest Motor Industry

Vocal synthesis
Morocco Strives to Overtake South Africa as Home of Africa’s Biggest Motor Industry


South Africa (SA) may be about to surrender its status as the home of Africa’s biggest motor industry to Morocco, South African newspaper "Business Day" wrote.

New investments in Morocco are forecast to push up the production, the source said, adding that Morocco has set an annual production target of 1-million vehicles within 10 years while SA is targeting 1.2 million by 2035.

The Kingdom has become a base for European exports and some Moroccan politicians are talking about turning the country into a production base for the whole of Africa, it added.

“Renault, the original investor, has been joined by Peugeot-Citroen, while manufacturers from other countries are starting to take interest,” the paper pointed out.

"Renault’s Tangier car plant is planned to have an eventual annual production capacity of 400,000 vehicles – nearly twice as many as SA’s largest," the source added.

Investment incentives include a five-year corporate tax exemption for automotive industries setting up in Morocco, and a 25-year exemption if most production is exported, it said, adding that other benefits include VAT exemptions, land purchase subsidies and rebates of up to 30% on investment costs.

According to the International Organisation of Motor Vehicle Manufacturers, vehicle production across Africa grew 3.9% last year, to 1.1 million units, the paper pointed out.

MAP 29 May 2018