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Rabat – Mobility and Automotive Centre (ATC) has secured a MAD 127 million ($13.6 million) loan from the European Bank for Reconstruction and Development (EBRD) to equip “the first automotive testing center of its kind in Africa,” EBRD reported in a press release.
ATC is a greenfield company jointly owned by FEV North Africa and UTAC Maroc, subsidiaries of German vehicle service provider FEV Group and French automotive testing company UTAC Group.
EBRD and ATC signed the loan agreement during the EU Africa Business Forum 2022. Co-organized by the European Commission, the African Union Commission, and EU and African business organizations, the forum takes place in Brussels on February 14-18.
Expected to start operating in 2022, the automotive testing center “will contribute to the sector’s competitiveness and the extension of supply chains in the country by introducing new types of service at different stages of the production process or distribution channels that are currently unavailable on the market,” explained EBRD.
The EBRD emphasized that its project comes in response to the ongoing COVID-19 crisis, which has negatively impacted the Moroccan automotive sector. The EBRD described the sector as “a key driver of exports and employment in the country, contributing to 25% of exports, involving more than 260 suppliers, and supporting over 148,000 jobs.”.
“Morocco has four integrated industrial clusters for the industry, in Casablanca, Kenitra, Rabat, and Tangier,” the European bank added.
Yet, Moroccan automotive sales and production were severely hit by the economic fallout resulting from the ongoing COVID-19 pandemic.
In February, Morocco’s association of automobile vehicle importers in Morocco (AIVAM) reported that automotive sales reached 12,439 units in January 2022, marking a 6.72% drop compared to January 2021.
Read Also: Automobile Market in Morocco Grew by 5.7% in 2021
Morocco’s automotive manufacturing also suffered a shortage in semiconductors, burdening the market’s productivity. However, AVIAM expects 5% to 15% market growth by the end of the year.
In order to address the needs of the Moroccan market, the EBRD-ATC partnership aims to boost the Moroccan automotive sector by meeting international production standards while developing human capital.
The center is set to receive the ISO 9001 certification on the quality management system to meet international standards. The certification covers all aspects of the center’s activities, including “testing, analysis, construction of equipment, and prototyping of vehicle powertrains and powertrain components,” the bank added.
Additionally, ATC will create and implement a training program for youth in the technical skills of automotive testing in Oued Zem. The program aligns with EBRD’s Equality of Opportunity Strategy 2021-2025.
The bank’s strategy recognizes inequality as an intersectional socio-economic issue related to gender, place of birth or residence, age, disability, skills types and levels, displacement, and sexual orientation, among other factors.
To promote equal access to opportunities, the European bank focuses on developing beneficiaries’ skills as well as creating inclusive and gender-responsive public goods and services as well as business environments.
To date, EBRD has invested nearly MAD 34 billion ($3.6 billion) in Morocco through 80 projects.
Through the bank’s Strategy for Morocco, EBRD, the Moroccan government, EU Institutions, and other international financial institutions plan to improve regional economic integration and the business environment in Morocco.
