MOROCCO – The European Bank for Reconstruction and Development (EBRD) has granted €15 million (about US$16.33 million) loan to Varroc Lighting Systems Morocco.
This funding will allow the company to set up training and creating jobs for young skilled workers, according to Morocco World News.
EBRD said that the loan to Varroc formed part of its effort to support the automobile industry in Morocco.
It will enable Varroc Engineering provide the Renault plant in Tangier and the Peugeot PSA plant in Kenitra with exterior lighting systems in addition to other automotive companies based in Morocco, including Volkswagen and SEAT, said the EBRD in a statement.
EBRD added that the funding will enable Varroc build an engineering center and laboratories in the country.
EBRD further noted that the as a result of the funding, Varroc will be in a position to create sevenoting that 100 jobs in Morocco’s automotive industry, including engineering posts, between 2020 and 2026.
According to EBRD, the funding objected was also is in line with the government’s efforts to increase the rate of regional integration to 60% by 2020- implying that Morocco is aiming to produce 60% of the car parts locally.
Varroc Lighting Systems is a global automotive supplier and manufacturer of Automotive exterior lighting systems.
On December 2017, the company announced it would establish a manufacturing and product development factory in Tangier’s economic free zone.
Attracting foreign automotive, as well as aeronautics, investors is part of Morocco’s Industrial Acceleration Plan (PAI) 2014-2020.
This Industrial acceleration plan with its investor friendly policies has Morocco a hot destination for automotive investments.
Its proximity to Europe and gateway to the rest of Africa, and its large skilled labor force in addition to regional stability, security, and competitiveness have also made it attractive to automotive companies
Morocco has not only gained expertise in the sector but also created job opportunities for 116,000 people and generated an export turnover of MAD 50 billion (€4.76 billion) in 2017.
The infrastructure quality of two of Morocco’s free zones (Tangier Automotive City and Kenitra Atlantic Free Zone) is also playing a major role in stimulating the economy.