A source of good advice

Notably due to its free-trade agreements with the European Union, the United States and Turkey, Morocco has, for the last few years, gained a reputation for itself as a production platform for international operators. Leading sectors include renewable energy and energy efficiency, water management optimistion, logistics and infrastructures, real-estate engineering, trade, education and training, as well as health. “Average yearly growth in Morocco has stabilised at 6% in recent years,” states Maghnouj Choukry, Consultant and Partner at Ernst & Young, Morocco. “This rate should remain the same in 2009 despite the recession.”
Abdelmejid Faiz, Tax and Auditing Consultant and Partner confirms this forecast: “The financial crisis has had a very limited impact on the Moroccan financial system as a result of strict exchange rate regulations which restrict and subject to monitoring financial investments made by national players overseas. However, the real economy of Morocco will probably be indirectly affected from this year onwards – especially in export-geared sectors: textiles, part of the mining sector, industrial subcontracting, particularly that which relates to the automobile sector… However, the crisis can also offer opportunities by allowing foreign investments to tap into sectors where Morocco offers competitive advantages and by accelerating certain major public construction sites for the mid-term.”
A member of the Ernst & Young network since 1993, the Casablanca firm today employs some 150 employees, producing a 2008 turnover of over 90 million dirhams (in other words around 8.5 million euros). Its organisation is based on that of the network, divided into streams: auditing (certification of accounts, conversion to IFRS norms…), Transaction Advisory Services (mergers and acquisitions, financial assessment and modelling…), legal and tax advice, as well as broader consultancy services providing a typology of activity-specific solutions. Ernst & Young Morocco has met with an average annual growth rate in double figures in the last few years.
“Ernst & Young is a leader in the Moroccan markets of auditing and consultancy,” sums up Abdelmejid Faiz. Amongst its clients: major international groups in the firm’s global network with subsidiaries or joint ventures in Morocco, most large private and public Moroccan groups, as well as the government and certain national agencies.
“We are an important player in the support of foreign investment procedures, notably those initiated by the Moroccan government, for which we work on the implementation of attractive set-ups for international investors,” confides Maghnouj Choukry. “For the last two years, we have notably taken part in a programme instigated by a national agency that focuses on improving the competitiveness of SMEs, allowing us to be at the heart of the preoccupations of such companies.”
“In terms of numbers, SMEs make up 40 to 50% of our global portfolio,” says Abdelmejid Faiz. “These are companies wishing to develop either in Morocco or else to export overseas from Morocco.” Amongst these companies are high-potential Moroccan SMEs, still in the process of taking off in markets often yet to be developed, subsidiaries of large international groups classified as SMEs due to their size in the national market, but also European SMEs. “We are very familiar with the Moroccan environment and sectorial strategies for international operators wishing to set up in Morocco,” explains Maghnouj Choukry.
“We can assist clients in all domains and whatever their requesst,” continues
Abdelmejid Faiz. “Specialised experts can support them in identifying the trade potential that Morocco offers their activity, answer questions – on business regulations, tax, exchange rates… – before they set up over here in order to allow them to better identify potential dangers, help them implement adequate structures and support them in carrying out their projects, whether in relation to financial management, trade strategy, the organisation and monitoring of activity or legal and tax advice. Not to mention the fact that we enable our clients to take advantage of the strength of the Ernst & Young network.”