JOHANNESBURG-- South Africa may be about to surrender its status as Africa's biggest motor industry to Morocco, according to theSouth African financial daily, Business Day.
It reported here Tuesday that new investments in Morocco are forecast to push up automobile production in the kingdom, noting that Morocco has set an annual production target of one million vehicles within 10 years while South Africa is targeting 1.2 million by 2035.
The Kingdom has become a base for European exports and some Moroccan politicians are talking about turning the country into a production base for the whole of Africa, the newspaper reported. Renault, the original investor, has been joined by Peugeot-Citroen, while manufacturers from other countries are starting to take interest, Business Day pointed out.
"Renault's Tangier car plant is planned to have an eventual annual production capacity of 400,000 vehicles, nearly twice as many as South Africa's largest (automobile plant)."
Investment incentives provided by Morocco include a five-year corporate tax exemption for automotive industries setting up in the kingdom, and a 25-year exemption if most production is exported, Business Day said, adding that other benefits include VAT exemptions, land purchase subsidies and rebates of up to 30 per cent on investment costs.
According to the International Organization of Motor Vehicle Manufacturers, vehicle production across Africa grew 3.9 per cent last year, to 1.1 million units, the paper pointed out.
Source: NAM NEWS NETWORK