23 October 2006
E-commerce is continuing to evolve as Moroccans, in increasing numbers, are connecting to the internet.
So far in 2006, several business to consumer sites have been launched. These have largely been in the form of merchant galleries. As most Moroccans remain unequipped with credit cards, these online galleries have adapted to the local market, operating on a cash on delivery model.
Since 1995, 400,000 internet users have signed up, 96% of which have broadband. The number of internet subscribers could reach 500,000 by the end of the year. It is also one of the fastest growing broadband markets in the world.
Business to business sites are also taking off with companies such as Von Trebber allowing its network of retailers in Morocco to order its IT products online. Sites such as these can also help Moroccan consumers by giving them a wider selection of merchants and products, which could lead to more efficient business practices and knowledge transfer from companies like Von Trebber, which is a German-Moroccan partnership.
This is in addition to the e-commerce platform launched bank in 2001 by Banque Centrale Populaire (BCM), Banque Marocaine du Commerce et de l'Industrie (BMCI), Credit du Maroc, Societe Generale Marocaine de Banques, and Intelcom, a Moroccan company focusing on infrastructure, licensing and security.
The platform, called Maroc Telecommerce, supports about 10 merchant sites, which sell services including hotel reservations, car hire, airline tickets and administrative services for businesses. The site serves both businesses and individual consumers, and includes businesses such as Diala, an auction site, and Laetistyle, which sells specialty gifts.
Yet, the growth of e-commerce continues to be hindered by the small number of credit card holders in the kingdom. There are only about 200,000 at present, compared to about 2m debit cards. To date, only Banque Populaire, BMCI and BMCE Bank have set up internet payment services for certain types of credit cards. In fact, only about 25-35% of the population hold bank accounts, making the cash-on-delivery option necessary to any online retailer in Morocco.
According to regional press, e-commerce will likely be most affected by large businesses that can offer products for mass consumption at good prices, including such utilities as telephone, water and electricity services. La Poste Export Solutions meanwhile says that there is a genuine interest developing the sector in Morocco, and should therefore become quite successful in the future.
And with such developments of course comes the need for greater security. And here Morocco may be ahead of the curve in some areas compared to other emerging markets. A draft law on e-signatures, vital for the growth of the industry, that had lingered for some two years, was passed in March 2006, while other laws on data protection and e-commerce are also due to be passed before the end of the year.
With the coming into force of the free trade agreement (FTA) with the US in January 2006, the country has been beefing up penalties for violations of intellectual property rights. Piracy, for instance, is now punishable by between six months and four years in jail and fines up to $68,000.
According to the Moroccan Copyright Office (BDMA), the country loses some $226m each year through piracy. The government also recently began an information campaign to raise awareness about the issue among its citizens with television and radio announcements.
The FTA contains provisions concerning data protection, which the US State Department says are part of a broader framework in the kingdom. Indeed, Morocco has not been listed on the US Trade Representative's (USTR) Special 301 Report, which monitors the state of copyright protections in countries around the world.
While piracy does remain a problem, falling from 100% of music recordings sold to 95% in the past year according to the USTR, government efforts to protect intellectual property rights were acknowledged in a 2006 Special 301 Special Mention by the USTR.
The government is also working on its e-Maroc 2010 project, which is planned to facilitate internet banking, along with all necessary international regulations, checks and norms.
All of these developments are making Morocco increasingly attractive to foreign investment, not least to European IT firms such as leading networking and systems provider SATEC Group, which hit $3bn in 2005, up from only $1.07bn in 2004. Some $2.31bn has already been invested since January of this year.
E-commerce is continuing to evolve as Moroccans, in increasing numbers, are connecting to the internet.
So far in 2006, several business to consumer sites have been launched. These have largely been in the form of merchant galleries. As most Moroccans remain unequipped with credit cards, these online galleries have adapted to the local market, operating on a cash on delivery model.
Since 1995, 400,000 internet users have signed up, 96% of which have broadband. The number of internet subscribers could reach 500,000 by the end of the year. It is also one of the fastest growing broadband markets in the world.
Business to business sites are also taking off with companies such as Von Trebber allowing its network of retailers in Morocco to order its IT products online. Sites such as these can also help Moroccan consumers by giving them a wider selection of merchants and products, which could lead to more efficient business practices and knowledge transfer from companies like Von Trebber, which is a German-Moroccan partnership.
This is in addition to the e-commerce platform launched bank in 2001 by Banque Centrale Populaire (BCM), Banque Marocaine du Commerce et de l'Industrie (BMCI), Credit du Maroc, Societe Generale Marocaine de Banques, and Intelcom, a Moroccan company focusing on infrastructure, licensing and security.
The platform, called Maroc Telecommerce, supports about 10 merchant sites, which sell services including hotel reservations, car hire, airline tickets and administrative services for businesses. The site serves both businesses and individual consumers, and includes businesses such as Diala, an auction site, and Laetistyle, which sells specialty gifts.
Yet, the growth of e-commerce continues to be hindered by the small number of credit card holders in the kingdom. There are only about 200,000 at present, compared to about 2m debit cards. To date, only Banque Populaire, BMCI and BMCE Bank have set up internet payment services for certain types of credit cards. In fact, only about 25-35% of the population hold bank accounts, making the cash-on-delivery option necessary to any online retailer in Morocco.
According to regional press, e-commerce will likely be most affected by large businesses that can offer products for mass consumption at good prices, including such utilities as telephone, water and electricity services. La Poste Export Solutions meanwhile says that there is a genuine interest developing the sector in Morocco, and should therefore become quite successful in the future.
And with such developments of course comes the need for greater security. And here Morocco may be ahead of the curve in some areas compared to other emerging markets. A draft law on e-signatures, vital for the growth of the industry, that had lingered for some two years, was passed in March 2006, while other laws on data protection and e-commerce are also due to be passed before the end of the year.
With the coming into force of the free trade agreement (FTA) with the US in January 2006, the country has been beefing up penalties for violations of intellectual property rights. Piracy, for instance, is now punishable by between six months and four years in jail and fines up to $68,000.
According to the Moroccan Copyright Office (BDMA), the country loses some $226m each year through piracy. The government also recently began an information campaign to raise awareness about the issue among its citizens with television and radio announcements.
The FTA contains provisions concerning data protection, which the US State Department says are part of a broader framework in the kingdom. Indeed, Morocco has not been listed on the US Trade Representative's (USTR) Special 301 Report, which monitors the state of copyright protections in countries around the world.
While piracy does remain a problem, falling from 100% of music recordings sold to 95% in the past year according to the USTR, government efforts to protect intellectual property rights were acknowledged in a 2006 Special 301 Special Mention by the USTR.
The government is also working on its e-Maroc 2010 project, which is planned to facilitate internet banking, along with all necessary international regulations, checks and norms.
All of these developments are making Morocco increasingly attractive to foreign investment, not least to European IT firms such as leading networking and systems provider SATEC Group, which hit $3bn in 2005, up from only $1.07bn in 2004. Some $2.31bn has already been invested since January of this year.
© Oxford Business Group 2006
