Learning from Morocco which’s leading Africa minus South Africa in global exports of manufactured goods

By Edward Chisanga

Introduction

In a Lusaka Times article of August this year, I provided statistics to guide the Zambian government to emulate African countries that are breaking through in world exports of manufactured goods or value addition. The new dawn Zambian government is on mission to pursue value addition. I argued that if I were government, I would simply make trips to countries like Morocco whose proportion of exports of manufactured goods in total exceeds that of primary commodities. This is one trade indicator that is accepted internationally.

Morocco exports more manufactured good than primary commodities

I stated that when a country whose proportion of exports of manufactured goods exceeds 60 per cent in total, it implies that it is breaking through in export value addition. Morocco exhibits that behavior. As Figure 1 below shows, at 70%, the trajectory of Morocco’s proportion of global exports of manufactured goods in total has been firmly leading that of primary commodities. This is clearly the antipodal of most African countries, including Zambia whose exports are dominated by primary commodities and are in search of value addition. In most countries, public statements and national plans are full of value addition since independence but little or none is seen in action. For example, the proportion of world exports of manufactured goods in total for Zambia stood at 11% in 2021 while primary commodities register 89%.

Morocco’s accomplishment is unsung in Africa

Morocco’s accomplishment is unsung in most African countries because South Africa’ dominance dwarfs it. Yet, according to Unctadstat data, excluding South Africa, the Arab nation leads Africa in world exports of manufactured goods as shown in Table 1 below. In fact, this leadership spans two decades. At $25.4 billion relative to Zambia’s exports in absolute values in 2021, Morocco is running, flourishing and slowly but surely integrating in global value chains and networks while we continue to make speeches.

Table 1: Top African countries’ exporters of world manufactured goods in US$ Billions

Source: Unctadstat

Although its intra-Africa exports of manufactured goods as a proportion of its total manufactured goods to the world represents only about 7%, meaning it is quite low, because 93% goes to the rest of the world, Morocco dominates Africa excluding South Africa. It is also likely to be one of the top four African countries to dominate trade in manufactured goods in Africa under the free continental market. Morocco’s total intra-Africa exports of manufactured goods in absolute values reached $1.7 billion followed only by Kenya’s 1.5 billion while Zambia’s stood at less than $1 billion. At only 7% referred to earlier, statistics also show that Morocco’s degree of regional integration in Africa in the context of exports of manufactured goods is quite low.

In 2020, Morocco’s manufacturing value added as a proportion of the its GDP was 17.2% compared to Zambia’s 8.0%. 21.9% in 1985. In that same year, Zambia’s proportion was 27.5% and ranked number two after Ghana when South Africa is excluded.

Concluding

I’m recommending Morocco as a place to visit if Zambian leadership wants to learn something about value addition, I would rush to Morocco to learn how the country is breaking through. $25.4 billion exports of manufactured goods by Morocco means the figure is almost threefold that of Zambia’s total exports of all products to the world. There’s simply nothing better than seeing how successful countries are organizing themselves.