LMG presentation at the B2B event organized during Maroc Expo 2013 (Dec 28-29 2013 in Nieuwegein, The Netherlands)
LMG believes that the downgrade of Morocco from MSCI Emerging Markets to MSCI Frontier Markets index is not necessarily bad for the country. It is better to be large in a smaller index than a rounding error in a bigger one.
The country is relatively stable - both economically and politically - and under the guidance of King Mohammed VI the new moderate Islamic government has expanded the network of international good contacts (in which EU; mainly FRA and SPA; and USA were the most important ones) with closer ties to the GCC and Saudi Arabia. This will further reduce the dependance of the country on Europe.
LMG believes that in this setting the potential gateway role of Morocco in Africa - where it is according to us one of the top-5 economies - is a solid one. Within Western Africa Nigeria is often considered still too risky by many investors with Morocco then becoming an option when one wants to enter West Africa (with the knowledge of the French language being a nice bonus), also taking into account that within North Africa Egypt is currently struggling with economic recovery and political restructuring issues.
The potential of Islamic Finance opportunities in the country can - supported by the government, legal system and Middle Eastern partners - add more fuel to this investment perspectives upgrade.
Sectors that we believe in: Tourism, Phosphates, (Renewable) Energy, Textiles/Apparel, Sub-components, Selected IT and Communication Services and some others mentioned in the presentation