Friday , January 22 2021

Le Matin – Draft private equity strategy

The government is working on a private investment promotion strategy for the Argan sector. The goal is to accelerate its development in terms of production,
performance, export and value added.

Argan village promised a new take-off. The government is working on a private investment strategy to accelerate the development of this sector in terms of production, productivity, exports, and value added. The draft of this roadmap, which should be ready by 2019, is being implemented by the Ministry of Agriculture in partnership with the National Agency for the Development of Oasis and Argan Districts (Anzoa). “Morocco is making significant efforts to improve the investment environment in this sector, especially in the context of Green Morocco … However, this sector represents a significant development gap, requiring significant innovation and investment to increase the momentum that the cooperative sector of the sector has begun over the years” – emphasizes the top manager of Andzoa.
Morocco produces between 4,000 and 5,000 tons of argan oil per year, of which almost a third is exported. “At the end of 2016, Argan oil exports amounted to 298.5 million Dirhams, which amounts to 1,387 tons on the international market, whereas by 2000 this volume did not exceed 36 tons,” indicates the Agency.

As a developing sector, the Argan tree has experienced a big leap since signing a contract program between the government and the intersectoral division in 2012. The country seeks to double production to 10,000 tons per year by 2020–2022, with strong value added for production areas. So far, the locals have won little. According to Anzoa, despite the structuring efforts, domestic producers account for a small share of value added (almost 17% of export value added). Perspectives. After recovering 101,487 hectares from 2012 to 2017, Morocco began a project last March to build 10,000 hectares of argan gardens in eight provinces and prefectures in the Sousse-Massa, Marrakesh-Safi and Helmim -Oued areas.
The total cost of this project is 49.2 million dollars. US (about 451 million DH) funded by the Green Climate Fund for $ 39.3 million. United States, with the co-financing of Morocco $ 9.9 million. USA. In addition, by 2022, it is expected that the global market for argan oil will grow by 20% on average annually, reaching 600 million dollars against just over 100 million dollars in 2014 (the American company Grand Vie Research). Hence the need for a private investment strategy for this sector. To this end, the Ministry of Agriculture and Andzoa is preparing to conduct a study to develop this strategy, which will also cover aromatic and medicinal plants.

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