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Morocco: OBG talks to Abdoulaye Wade

OBG recently met with Abdoulaye Wade, president of the Republic of Senegal, to discuss relations between Senegal and Morocco. The president emphasised the close relations between the two countries, which he qualified as family relations. Among the topics raised during the discussion was the issue of cultural cooperation, bilateral trade, investment flows and socio-political cooperation in terms of migration flows coming from Senegal.

Under the reign of Mohammed V, Hassan II and today Mohammed VI, relations between the two countries have always been marked by solid cultural links while Islam has played a major role in unifying cultures, helping to cement exchanges. The president welcomed Morocco's skills and its long tradition of transfering knowledge and expertise.

"Morocco brings many things in a wide range of areas" Wade told OBG. "I often refer for instance to Moroccan architects who work in Senegal because I admire their sense of precision."

However, nowadays, economic relations and business have become central and are consolidating simultaneously, deepening relations at the highest political level.

"This kind of relations are pushed forward with or without the cooperation of officials in both countries," said Wade. "We also need to reiterate that the private sector also comprises the informal sector."


The integration of the private sector is not limited to the informal sectors of both countries. The partnership between Royal Air Maroc and Air Senegal is a perfect example of a successful match of skills between the two economies. "This is the union between Morocco's sense of organisation and Senegalese understanding."

The head of state of Senegal also emphasised the presence of Moroccan banks in Senegal, stressing the important progress seen by BMCE bank, which has been in Senegal since 2003 and Attijariwafa Bank , since 2006.

However, steps have to be taken to further develop trade exchanges. While the balance of trade between the two countries reached $55m in 2006, Wade bemoaned the lack of information available to Senegalese about how Morocco can contribute to the economic development of the country. Bilateral exchanges show enormous potential according to the head of state, who cited as an example the natural dye carpets made in Morocco, which are exported to France before being imported to Senegal.

To correct this kind of occurrence, he said there should be a permanent exhibition of Morocco products and services in Dakar.

The president called on investors and Moroccan businessmen to establish, or at least commit to, technical assistance. Ranking agriculture at the top of the agenda of the national development strategy, Wade welcomed the efficiency and the experience of Moroccan companies engaged in irrigation systems.

"Senegal needs the technical assistance of Moroccan firms to make the most of the 240,000 ha available along the Senegal River," said Wade.

The increasing cooperation between the two countries and the prospective development of trade exchanges does not yet necessarily involve increased competition between the two economies. Although Senegal tries to corner some niches of Moroccan business, such as offshoring through call centres, they show differing levels of development. Indeed, according to Wade, "We cannot as yet speak of competition in this sector." Moreover, considering the market potential of information technologies and offshoring activities, it seems clear that there will be room for everyone. The president nevertheless praised the benefits to be derived from competition in a market-based economy.

On the political front, speaking about the sensitive issue of immigration, Wade defined two kinds of immigration movements in Morocco. Direct immigration and transit immigration to Europe. Wade mentioned the significant measures introduced to limit illegal immigration to Europe and reviewed the history of Senegalese immigration to Morocco, whether for study, training or work purposes.

The issue of emigration, from a Senegalese point of view, is necessarily linked to the economic development of the country. Wade said the creation of 200,000 jobs for young people by his government served to alleviate the pressure on young people to move to Europe.

Speaking about the growing trend towards cooperation between the two countries, Wade alluded to the creation of cinema studios in Senegal, following the model of Morocco. After the visit of King Mohammed VI, Said El Alj and Souhail Ben Barka, Wade took the decision, in May, to transform some premises into integrated cinema studios.

Wade added that the Senegalese market should not be viewed merely as a domestic market. Thanks to monetary union (UEMOA) and fiscal union (CEDEAO), Senegal is the gate to 70m consumers and 15 countries in the region.

© Oxford Business Group 2007