Morocco’s Industrial Acceleration Plan (PAI) and Its Impact on Local Businesses

Between globalization and everchangement, adaptation and change has become a

fundamental and primordial pillar of an organization’s or state’s economic survival. It’s

within this vision that Morocco has begun the PAI (=Plan d'accélération industrielle –

translating directly to Industrial Acceleration Plan) referring to a major Moroccan

government initiative launched in April 2014 and active through to 2020, with a follow-up

phase planned for 2021–2025. This plan aims to transform Morocco into a competitive

industrial hub by boosting job creation, enhancing industrial ecosystems, and accelerating

economic diversification, constituting a major revolution for the SMEs. Therefore, What does

the PAI concretely instills and changes in Morocco?

First and foremost, The PAI project encourages cooperation between big industrial

groups and SMEs, reinforcing flexibility and assuring a mutual transfer of expertise. For

example, the signing of a memorandum of understanding with BYD for the construction of

three factories in Morocco is also expected to lead to the establishment of new equipment

suppliers. Overall, this partnership pushes firstly companies to adopt new strategies and

approaches to stay competitive (or at least alive), but also pushes States to reassess the

components of their business climate, namely the attractiveness of their territories.

Furthermore, the PAI forces the state to reconsider its economic environment,

particularly the appeal of its regions, in addition to changing private-sector behavior. To meet

the demands of manufacturers and investors, the government has created turnkey industrial

zones, streamlined administrative processes, and established a 20 billion MAD Industrial

Development Fund to make it easier for SMEs to access infrastructure and funding. As a

result, more than 500,000 jobs have been created, and almost 40 industrial ecosystems have

been established in high-potential industries like textiles, automotive, and aviation. For

example, exports increased and local integration reached 60% in the automobile industry

alone, creating tens of thousands of employment. These results demonstrate how the PAI

causes a structural change by changing the link between territory, growth, and government

policy.

To sum up, the Industrial Acceleration Plan (PAI) represents a significant milestone in

Morocco’s development towards a modern, competitive industrial center. It fosters greater

cooperation between large companies and SMEs, territorial attractiveness and resource and

training access. The PAI reconfigures business dynamics and the role of the state. Its effects

are far from merely theoretical and are concrete and measurable, for example, in employment

and exports : from the structural transformation of local businesses. As Morocco moves into

the next stage of PAI, it’s clear that this initiative is acceleration-focused but also aims for a

more inclusive evolution of the economy.