Last week, Moroccan king Mohammed VI has paid a visit to several West African countries countries, including Guinea, Ivory Coast and Gabon and stopped over in Mali for four days. In this war torn country, he signed 17 cooperation agreements. And, perhaps more important for Morocco, obtained full support for Moroccan policies and positions in the Western Sahara.
It is therefore true that the visit not only focused on Economic issues. Security and terrorism was also high on the agenda. This represents, parallel to proving Morocco's value to Europe and the US as an ally in the war against terrorism and Islamic Radicalism, a new front in the constant friction and competition with its neighbour, Algeria.
The Economist blog said today : " Algeria has long been the dominant north African power in West Africa, but Morocco is now vying for clout. Over the past year, it has engaged with Africa more than anytime since 1984 when it quit the Organisation of African Unity". It did so because this organization recognised the Polisario Front, fighting for the independence of the Western Sahara.
So from a security and political perspective, the visit could not have gone better for Moroccan interests, which has had a moderate Islamic Government in power for the past few years, even though foreign policy remains under the direct responsability of the King ( domain reservé)
Economically, in the case of Mali, Morocco is highly present in the capital of the four major banks and also in the telecommunications sector. The visit should further foster these already close relations in the near future.
Moroccan exports to West African countries have grown eightfold over the last decade, as rapid development in the region drives demand for primary exports, according to a report by the Arabia Monitor.
As West Africa booms, minerals and fertilisers have been the region’s largest imports. Primary products account for a sizeable chunk of Morocco’s exports.
Moroccan banks are also looking to benefit from the region’s underdeveloped financial infrastructure, according to the report. Bank accounts per capita are among the lowest in the world, while only 3 per cent of adults in Sub-Saharan Africa have credit cards, according to data from the World Bank.
Morocco has several of Africa’s largest banks, which means it has ample opportunity to offer retail banking services to the continent’s customers, the report argues.
So Moroccan investments in the area target sectors with high added value like telecommunications, banks and transport. Royal AIr Maroc, the national airline, is present in all West African nations from its hub in Casablanca. Connections are not only considerably cheaper than travelling through/from Europe, but often schedules are far more convenient for business travellers.
The African continent is steadily growing and opportunities are increasingly there for foreign capital and businesses. As we know, for five straight years, consumer spending in Europe and the United States has dwindled in the aftermath of the financial crisis.
Companies have responded by looking for new markets for their products. Luckily for them, consumer spending in Africa has risen over the same period and the trend is expected to continue.
A recent report by the consultancy McKinsey found that even before the financial crisis, less than a third of Africa’s GDP growth was attributable to resources while 45 per cent came from consumer-facing sectors. The Boston Consulting Group (BCG) recently concluded a 10,000-person consumer study in Egypt, Morocco, Algeria, Nigeria, South Africa, Angola, Kenya and Ghana that highlighted rising incomes as a cause of higher spending. In 2001, 104 million people had an annual income in excess of US$2,700. By 2011, this reached 184 million and may rise to 257 million by 2020, BCG said.
Spain and, in particular the Canary Islands, the nearest portion of Europe to West Africa, is once again lagging behind in taking active part in the blooming economies of the area. I think it is imperative for Spain to open frank and in-depth discussions with Morocco, and jointly study all the implications of events in the area, both from the security and terrorism aspects, and from the economic and business point of view.
Cooperation between Spain and Morocco is working well bilaterally in many ways. Perhaps the moment has arrived to partner up and reap mutual benefit from neighbouring West Africa. Spain has to accept that contributing actively to Moroccan security and economic presence and stability in the southern borders we share in effect, is also vital to its security, A small presence in a Moroccan bank is far from enough in this scenario.
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