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Business Brief: Casablanca Finance City Again Featured as Financial Center in Africa; Laureate University in Casablanca under New Ownership – Jean R. AbiNader

Jean R. AbiNaderMATIC
January 22, 2018

Jean R. AbiNader, Exec. Dir., Moroccan American Trade and Investment Center

Jean R. AbiNader, Exec. Dir., Moroccan American Trade and Investment Center

Morocco’s Casablanca Finance City (CFC) is showing its potential after only five years. Major tenants including Lloyd’s of London, Allianz, Thomson Reuters, and Clifford Chance are a few of the world class companies that now make CFC their headquarters for Africa. More than 120 companies representing 20 countries from four continents have already signed up and taken advantage of its tax incentives and geostrategic location to service Africa with finance, legal, investment, consulting, and a battery of other services.

First ranked 69th in the Global Financial Centers Index in 2014, it is now 35th, making it the first financial center in Africa, ahead of Johannesburg at 48th.  According to its President, Said Ibrahimi, CFCA (the parent company, CFC Authority) is aiming at a 500 member business community by 2025. Among the innovations to attract companies, according to Juene Afrique is “The Taechir system, which makes it possible to simplify and speed up the processing of work permit applications by expatriates from CFC-certified companies.” Ibrahimi points out that “This new reception desk, the first link in the SWC single window, complements the range of incentives and accompanying measures proposed.” To date, more than 90 people have benefited from this window where the processing time is twenty-four hours only.”

Despite competition from the Tangier Financial Center in the industrial north, CFC has a growth strategy for building complementary between the Centers, beginning with nation-wide incentives and regulations for investments that will moderate competition between the two entities. The Single Window Concept will require modifications to existing regulations and CFCA is actively involved in needed reforms, e.g. to the 2007 arbitration law that will enable CFC to be a regional arbitration center. “In the coming years, the Casablanca International Mediation and Arbitration Center (Cimac) will make a decisive contribution to strengthening the business environment by welcoming economic operators to find solutions to their problems,” Said Ibrahimi said in an interview.

There are some structural issues in the financial environment that also must be addressed such as the narrowness of Morocco’s capital markets, limiting offers on the Casablanca Stock Exchange, a drawback for investors and companies looking for local financing. The Reuters article noted that “The listing of African companies in dirhams and local currencies and the listing of project bonds or that of African funds in the Casablanca basket are all issues that remain unresolved.”

While the SWC may be helpful for promoting investments in Morocco, another major challenge is “the mobilization of more capital to finance the development of the continent.” It has been reported that “About $ 13 billion in investments are in the pipeline, with the result that CFC companies now make 75% of Morocco’s investments in Africa.”

Located in the historic Casa-Anfa area, CFC will soon see its first real estate project, construction of an office tower, realized later this year. More than 80% of the available 20,000 square meters has already been reserved. It will be part of the CFC campus covering more than 247 acres consisting of offices, open space, housing, shops, and education centers.

Casablanca International University (UIC) changed hands as its owner Laureate Education, Inc., the world’s largest global network of higher education institutions, signed an agreement with KMR Holding Pedagogique, the leading state-approved multidisciplinary private higher education platform in Francophone Africa to transfer ownership.

UIC opened its doors in 2010, and is the first and only comprehensive private university in Casablanca recognized by the government. UIC’s program offerings included undergraduate, graduate, and executive education programs in Business, Engineering and Health. It hosted former President Bill Clinton in 2013 when it announced its move into permanent facilities. UIC has a capacity of 12,000 students.

KMR hosts 7,500 students across Marrakech, Casablanca, and Dakar, delivering programs in medicine, health sciences, engineering, management, and hospitality, among others. Development Partners International (DPI), a leading Pan-African private equity firm, with US$1.1 billion of assets under management is a principal shareholder of KMR Holding Pédagogique.

Commenting on the transaction, Mohamed Kabbadj, CEO of KMR, said, “KMR Holding Pédagogique is committed to building on the strong legacy of UIC, which is distinct in the market for creating industry-aligned programs which maximize student employability, with an emphasis on internationality and project-based learning. UIC has grown from strength to strength since its inception and we believe UIC’s offerings will be complemented through the network of KMR Holding Pédagogique across Francophone Africa, Europe, and North America.”

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