The expatriate managers at the helm of multinational subsidiaries are replaced by senior Moroccan executives with recognized skills. Analysis of a basic trend.
Coca-Cola, Microsoft, Capgemini TS, Renault, L’Oréal, Lesieur…, if these multinationals operate in Morocco in different sectors, they all share one thing in common: they are managed by a Moroccan.
Over the past two decades, we have witnessed a “Moroccanization” of foreign firms. A fundamental trend that began in the mid-2000s. Since this period, the expatriates appointed to head the subsidiaries of multinationals in Morocco have been gradually replaced by Moroccans whose skills are widely recognized.
For Essaid Bellal, CEO of the Diorh firm, the beginnings of this Moroccanization date back to the 1980s and 1990s. , sales managers, etc.,” he notes. And to continue that “since, certain firms of the place began to internationalize the Moroccan competences to make them return as CEO locally”.
As a reminder, the headhunting firm IBB Executive Search had published a study a few months ago on 152 subsidiaries of multinationals established in Morocco, covering the period from 2010 to 2022. The study in question shows a large presence of bosses Moroccans at the head of these groups: while they were only 30% in 2010, they are 57% in 2022. Another telling figure: the number of Moroccans at the head of the subsidiaries of multinationals has doubled between 2010 and 2022. In 2022, there are 6 Moroccan CEOs for 4 expatriates, while there were only 3 Moroccans for 7 expatriates in 2010.
The Moroccan CEO costs 2 to 3 times less than an expatriate
There are many reasons for this shift in posture. For Marie Agot, manager at IBB, “Morocco has a large number of leaders recognized for their technical and human qualities. They master the economic fabrics, the local socio-cultural codes and have an extensive network”. Spread the word, multinationals in the sector are now looking for local CEOs introduced into the business community and the public sphere.
But it’s not just that. With equal skills, the cost of an expatriate is 2 to 3 times higher, because it includes in particular high social charges and benefits in kind under expatriation which are not offered under local contracts. Multinationals also tend to create hubs by pooling certain functions at regional level to promote the emergence of “Country Managers” who are more focused on local activity. Alongside this, there is a “continuity” factor that comes into play: these companies want to ensure the stability and sustainability of activities by opting for local profiles, because the frequent departures of expatriates often create ruptures.
Finally, the local managers have a perfect command of English and their openness to international mobility facilitates their integration. In fact, “some Moroccan leaders also end up occupying positions in other regions of the world”, notes Essaid Bellal.
pioneering American multinationals in this field
By sector of activity, the majority of companies in the IT/Telecoms sector have been run by Moroccans since 2010. This sector has been at the forefront in appointing local executives to head their subsidiaries, as it is dominated by companies Americans, advances the study, and that IT skills are rather well represented in Morocco. Same topo for the financial sector, where Moroccan managers are gaining ground. A trend observed from 2018: while between 2010 and 2017, there were 4 Moroccan CEOs for 6 expatriates, in 2022, there are 7 Moroccan CEOs for 3 expatriates. In the consumer goods distribution sector, the trend reversed in 2019. While there were still 3 Moroccan CEOs for 7 expatriates in 2010, today there are 5 Moroccans for as many expatriates .
By nationality, American multinationals have been pioneers in this area, since in 2022 there are nearly 70% of Moroccan CEOs against 30% of expatriates, thus developing the culture of the “Country Manager”. French companies are also part of this trend, given that the number of Moroccans at the head of subsidiaries of French multinationals has doubled between 2010 and 2022, rising from 26 to 56%.
On the other hand, the other European companies (Italian, German, Spanish, etc.) are still mainly managed by nationals of their country of origin.
That said, everything suggests that without the pandemic episode, they would most likely have followed suit. In any case, the increase in the number of Moroccan CEOs should become generalized in the years to come, regardless of the nationality of the multinationals. On the other hand, Asian companies do not yet seem ready to take this step. Cultural differences, geographical distance and the strong centralization of their mode of management would explain this situation in particular.