DIRECT HELP GIVEN TO INDUSTRIAL ECO-SYSTEMS
•The FDII (The Industrial and Investment Development Fund), created by the 2015 finance law was attributed a budget of 20 billion MAD up to 2020;
•The process for direct aid given to industrial ecosystems was established by the Ministry responsible for Industry, and the Ministry for the Economy and Finances during the implementation of the “2014–2020 Industrial Acceleration Plan”.
Signature of an investment agreement as part of eco-system performance contracts or offset agreements signed between the State and its partners.
Two categories of projects can benefit from FDII support: “Strategic” and “Structuring”.
1. “Strategic Project” Category
a) “Locomotive” Project
This is a project brought by a key economic actor who is looking to expand and develop its activities with a significant subsequent structuring impact on the economic fabric of its suppliers and clients. The project improves the overall competitiveness of its eco-system and deepens the company’s roots in Morocco.
Investment over 50 Million MAD (Before Tax)
Creation of at least 200 permanent jobs.
b) “Contractor” Project
This is a project brought by a contractor who holds a public order and hopes to carry out industrial compensation measures with a significant, long-term economic impact. This is particularly the cases of direct and joint-venture investment, as well as investment in training, R&D or the transfer of technology.
Public order of at least 200 Million MAD (Before Tax).
2. “Structuring Project” Category
a) “Pioneer” Project
This is a project that aims to develop a business that has never been carried out in Morocco previously or that would complement the value chain of a sector within an existing eco-system.
b)"Added value resource” Project
A project that adds value to natural resources or waste products.
c) “Local Integration” Project
This is a project brought by a contractor that aims to develop its sourcing activities from Morocco or an industrial actor based in Morocco that aims to improve the rate of local integration.
d) “Sourcing” Project
This is a project brought be a local company that is looking to establish itself and ensure the sourcing of contractors either at a local level or at an international one.
e) Project for Engineering and R&D centres
This is a project that aims to create centres for the design, development, testing and investigation of aspects of industry.
Eligibility Criteria for a “Structuring Project”
Investment of over 20 Million MAD (Before tax) or the creation of at least 50 permanent jobs.
a) An overall bonus for tangible and intangible investment, up to 30% of the total investment amount (before tax). This bonus covers the following areas:
•Cost of purchasing or renting real estate, professional buildings and industrial equipment;
•Technical assistance charges;
•Expenses related to research and development, innovation and creation (including the cost of developing new models/ collections, taking care of skilled salaries, charges related to control and testing, purchase of the collection, and external expertise linked to innovation and creativity);
•Start-up costs for the first three years following the actual start of business.
b) An export growth bonus, up to 10% of the additional export turnover;
c) Annual award for the substitution of imports:
Companies that are part of an eco-system and that have transferred at least 60% of their input purchases initially carried out abroad to industrial suppliers installed in Morocco, can benefit from an annual bonus for the substitution of imports. This can be up to a maximum of 2% of said purchases.
d) Annual aid to install in Morocco:
During the 2015–2020 period, foreign companies that are not industrially based in Morocco, and clients of companies that are part of ecosystems subject to a performance contract that then open representation offices in Morocco, can benefit from an annual aid incentive to install in Morocco. This aid can reach a maximum of 2% of the additional annual turnover generated by their orders addressed in Morocco.
DIRECT AID GRANTED AS PART OF THE INVESTMENT CHARTER
The Industrial and Investment Development Fund (FDII) covers operations relating to the certain advantages granted to investors and taken care of by the State. The Investments must respond to specific criteria and conform to the investment charter and its application decrees (decrees n°2-15-625 modifying decree n°2-00-895 taken in application of articles 17 and 19 of the framework law n°18–95 that forms the basis of the investment charter).
Signature of an investment agreement with the State.
The investment project must respond to at least one of the follow criteria:
• Invest an amount of at least 100 Million MAD;
• Create at least 250 stable jobs;
• Be carried out in at least one of the provinces or prefectures covered in Decree n° 2-98-520 of 5 Rabii I 1419 (30 June 998);
• Ensure the transfer of technology;
• Contribute to protecting the environment.
• Real Estate Support: State participation in charges related to the purchase of the necessary land for the investment program. This can reach up to 20% of the total cost of the land;
• External infrastructure: State participation in the external infrastructure expenses necessary to carry out said program. This can reach a total of 5% of the overall investment program amount. That said, this rate may reach 10% when it involves investment in the spinning, weaving or textile embellishment sector;
• Professional Training: State participation in the professional training fees anticipated in the investment program. This can reach up to 20% of the cost of this training.
NB. The advantages anticipated in the present article can be accumulated however total State participation cannot go beyond 5% of the overall amount of the investment program. That said, in cases where the investment project is planned in suburban or rural areas or when it involves investment in the spinning, weaving or textile embellishment sector State participation can reach 10% of the overall investment amount.