Morocco :The key to doing business with the British

Detailing the ingredients of the business approach of his country, Matthew Smith, Executive Director of the Middle East Association based in England, says the British business model combines punctuality, pragmatism and networking. He was speaking during a meeting under the theme "Doing Business with the UK", organised by the British Chamber of Commerce in Casablanca and reported on by the French language daily Le Soir. This approach, which measures the practical implications "is based on facts and figures," a question of minimizing the risks associated with foreign investments.Matthew Smith sent the message to Moroccan business leaders aiming to encourage them to do business in the UK.

Offering significant business opportunities, Britain , which is the seventh largest economy, however, is not easy to penetrate. In addition due to mastering the language, the investor who aims to set foot in this market is bound to know the culture and habits of the British. Another constraint is the costs associated with compliance. The requirements of this market in compliance with safety regulations are also the greatest difficulty raised by local exporters. Whatever one can say about the investment opportunities in both countries, trade is still not up to the expected level compared to the countries of European Union objectives. According to the figures put forward by Matthew Smith, the bilateral trade volume to the end of January 2013 totalled 83,409,612 pounds sterling (1 pound = 13 dirhams).

673 million pounds for exports

An evolution that reveals the upward trend of foreign trade over the past three years. In 2010, British exports of goods and services to Morocco totalled 673 million pounds, a significant increase of 44% over the previous year. At the end of 2011, British sales continued on their advance to rise to 739 million pounds, an annual increase of 9.8%. The Moroccan shipments in this market are located at 739 million pounds. Most of Moroccan export sales consists of food and agricultural products, finished consumer goods, textiles and leather, electronics, capital goods and semi-finished products.

Goods bought from Britain consist mainly of natural gas and petroleum products, cars, textiles and clothing and other product groups. The UK is in the top 10 foreign investors in Morocco. In 2011, the total bilateral trade stood at £ 1 billion against $ 24 billion for the European Union.

If one looks over the last twenty three years at the opportunities that existed for British Moroccan trade and the opportunities that have actually been taken up the results are indeed disappointing although there have been bright spots,such as the ready made and fitted garment trade in the 1980's and 1990's where British companies like Courtaulds flourished in Morocco and Marks and Spencer's and other great stores in the UK were large customers of Moroccan ready made garments. The Chinese and greater competition eroded this industry. Tourism has many examples of British success such as the Riads and boutique hotels which have been highly entreprenurial. British oil and gas companies are working in Morocco's drive to find as yet ellusive oil and gas. Examples of British Moroccan cooperation exist . British companies work all over the world and have been extremely successful in the Middle East. There are many British companies in Libya .

Certainly oil and gas have played a large role in the development of British business abroad. They provide wealth and many advantages for over companies associated with them to grow their business. There is no doubt that the French presence in Morocco is extensive and it makes market penetration for British companies difficult. The Francophone system is very different from the British and language is a barrier whatever is said to the contrary. Many British companies have been put off doing business in Morocco by heavy bureaucracy and a lack of transparency, things have of course got a lot better but Morocco remains less business friendly than it could be.

Morocco is creating its own industrial base with the automotive and aviation industries in Tangier Med Freezone and Casablanca. Morocco's IT industry is developing fast and Morocco's banking sector is developing fast as are the plans for the Casablanca Finance City. Morocco is presenting itself as a gateway to Africa but many British businessmen remain unconvinced that Morocco can open doors to English speaking African markets.

Britain has grown as a private sector entrepreneurial led economy encouraged along the way by the late Margaret Thatcher's revolutionary economic policies. The private sector in France is still dwarfed by state enterprises and it looks like its going to stay that way for quite awhile with unfortunate economic consequences,manly unemployment. Morocco has only recently begun a drive to develop its private sector and entrepreneurship.

Morocco and Britain are still looking at each other and thinking about business opportunities but despite strenuous promotion efforts by diplomats and government ministers it has not yet taken off as everyone hopes it will. The reason is that in the UK the economy is sustained by businessmen not government, it is businessmen who decide their own affairs. In France business is actively led by government and the formidable MEDEF which brings its support to French business in Morocco in a way the the British government and UK Trade and Investment (UKTI)can never do, except perhaps in instances like India where David Cameron the British Prime Minister has led a very active trade campaign.

Language and a different bureaucracy are a substantial part of the problem but it is not just a problem on the British side. English language teaching has progressed in Morocco but it is nowhere near the level it should be,this has nothing to do with national preferences, English is a global language which is another asset which can help young Moroccans to gain an important skill and job opportunities. Call centres in French and Spanish are fine but to gain a greater market share Morocco needs English language proficiency. It is also a question of a different way of thinking, private sector development and entrepreneurs demand a greater freedom of expression and the development of commercial and marketing skills on a global scale.

Hopefully it will not take another twenty years before greater business development and trade can be achieved between Britain and Morocco. A note to the Moroccan press; please stop calling us Anglo Saxons ,a term the French use – we are British.