The Moroccan private corporation Groupe Chaabi continues to expand in the African market and has been able to find opportunities in economies that have shown positive growth prospects. The company is already well entranched in the most advanced economies of the continent, including Tunisia, Egypt, Cote d'Ivoire and of course its home market Morocco.
Chaabi operates like many other Moroccan peers. It has subsidiaries that focus on particular sectors such as construction and public works, real estate development, paper and cardboard production, petrochemical manufacturing, supermarket distribution, and tourism.
Although not unique in its structure and the way it operates, the Groupe Chaabi has been the biggest Moroccan investor in the rest of continent. And now its management is seeking to consolidate its lead given the potential of good return in key markets and the help it is getting from heads of states and the King of Morocco.
Burkina Faso, Benin, Mali, and Equatorial Guinea are among the countries where business opportunities are currently being explored. The company is also eyeing the infrastructure market in countries like Gabon and Cameroon. Both countries have been in discussion with the company and projects are likely to include some sort of participation from Chaabi.
But the company says the most profitable segments in these two countries remain by far housing and distribution. In Gabon, the government has invited Chaabi to invest in real estate and in developing commercial centers and supermarkets. Shortages and high prices in that country are often attributed to the lack of a dense and efficient distribution network, and with its ownership of the Asswak Assalam supermarket network, Chaabi is well positioned to help develop such distribution infrastructure and lower the cost of food. With Chaabi driving the mass retail market in Gabon, Moroccan products could also find a new market as well. But Chaabi says these investments can be profitable only if the volume of business is large enough and reaches mass levels. Aware of this fact, the Gabon government is offering the Chaabi company four major cities where it can expand its distribution network. They are Libreville, Port-Gentil, Franceville and Oyem.
In real estate development, the focus is on creating new towns or expanding existing ones. Chaabi intends to use its skills learned from the Essaouira El-Jadida expansion in Morocco to create integrated cities in Gabon. Already, specific regions have been set aside for the construction of new towns and commercial and industrial centers. For now, Chaabi is conducting feasibility studies to assess the technical and financial aspects of launching these projects. The company is likely to review the results of its research in the coming month of September
In Cameroon, Chaabi has been asked by the Moroccan monarchy to look into a number of potential projects, in particular in the areas of housing. The company's involvement in Cameroon is driven by high-level contacts between the two countries.
The diplomatic relations between Morocco and Sub-Sahara Africa have been important in the creation of business opportunities for Moroccan companies. For example, contacts have involved the Moroccan monarchy and the office of president Paul Biya of Cameroon. King Mohammed V has reportedly personally asked both Miloud Chaabi, the chairman of the Chaabi company to look into projects in various countries and sources say president Omar Bango of Gabon sent his private jet to fly Miloud Chaabi and the Moroccan transport minister. These contacts are largely the outcome of King Mohammed's recent tour of African nations that paved the way for Chaabi's increased exposure in the continent.
© The North Africa Journal 2004
