Rabat – In a victory for Morocco-sourced products, two partnership agreements signed on April 7 aim to ensure that, by 2024, at least 80% private label products and 75% of textiles sold through Marjane Holding (MH) will be of Moroccan origin.
Morocco’s Minister of Industry Moulay Hafid Elalamy, CEO of Marjane Holdings Ayoub Azami, President of the Moroccan Association of Textile and Clothing Industries Mohamed Boubouh, as well as President of the National Federation of Agribusiness (FENAGRI) Abdelmounim El Eulj signed the two partnership agreements, InfoMediaire reported.
The agreements aim to help MH adjust its sourcing towards local textile and agri-food manufacturers, in line with the national industrial recovery plan.
According to Elalamy, developing the economy around locally sourced manufacturers is the “perfect response” for reviving productive sectors and strengthening the capacity to create jobs.
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He continued by saying that supermarkets and hypermarkets “can play a role of a catalyst of the development of the local sourcing, of diversification and upscaling of the offer of the products meeting the quality and price criteria demanded by the Moroccan consumer.”
MH will adapt its purchasing policy to support local manufacturers by providing them with the logistical means to help secure local products’ presence in the stores. The local hypermarket chain will also set up a plan to develop the local sourcing of textiles, as well as work with local manufacturers to set up spring-summer and autumn-winter collections to meet Marjane’s needs.
Azami noted that “With regard to agro-industry, for example, the market share of local sourcing of private label products already represented 65% 2020 and we aim to reach 80% of our turnover in 2024. For textiles, we would like to increase our Morocco sourcing from 25% to 75% by 2024.”
The agreement resulted in an initial round of 13 local sourcing agreements amounting to $19.3 million (MAD 173 million).
FENAGRI will function as an intermediary, in consultation with the Ministry of Industry, providing MH with a list of local manufactures that can provide in-demand products for Marjane stores.
The ministry will implement the development plan to secure locally sourced products, as well as provide the manufactures with the necessary support in terms of investment and modernization.