Rabat – The European Bank for Reconstruction and Development (EBRD) has granted €15 million loan to Varroc Lighting Systems Morocco with the aim of setting up training and creating jobs for young skilled workers.
Through the loan, part of the EBRD’s efforts to support the automobile industry in Morocco, Varroc Engineering will provide the Renault plant in Tangier and the Peugeot PSA plant in Kenitra with exterior lighting systems in addition to other automotive companies based in Morocco, including Volkswagen and SEAT, said the EBRD in a statement.
EBRD added that the funding will also create an engineering center and laboratories, noting that 100 jobs in the automotive industry, including engineering posts, will open up between 2020 and 2026 in Morocco.
The statement asserted, “this is in line with the government’s efforts to increase the rate of regional integration to 60% by 2020.” This means that Morocco is aiming to produce 60% of the car parts locally.
The financial institution gave a similar loan to Varroc Lighting Systems Maroc, the Moroccan subsidiary of India’s Varroc company, in September 2018 for the same purpose.
Varroc Lighting Systems is a global automotive supplier and manufacturer of Automotive exterior lighting systems. On December 11, 2017, the company announced it would establish a manufacturing and product development factory in Tangier’s economic free zone.
The automotive sector as a growth engine for the economy
Morocco has become a hot destination for automotive investments, mainly due to the country’s investor-friendly policies, proximity to Europe and gateway to the rest of Africa, and its large skilled labor force in addition to regional stability, security, and competitiveness.
Morocco has not only gained expertise in the sector but also created job opportunities for 116,000 people and generated an export turnover of MAD 50 billion (€4.76 billion) in 2017.
By further developing the sector, Morocco aims to raise the number of vehicles manufactured and exported from 400,000 to 800,000 by the end of 2020, generating a turnover of MAD 100 billion (€95.33 billion) and create 160,000 jobs.
The infrastructure quality of two of Morocco’s free zones (Tangier Automotive City and Kenitra Atlantic Free Zone) is also playing a major role in stimulating the economy.
Attracting foreign automotive, as well as aeronautics, investors is part of Morocco’s Industrial Acceleration Plan (PAI) 2014-2020.
