Morocco's Competition Council proposes a strategic overhaul of the country's cement sector to strengthen competitiveness and secure national supply.
The council recommends regional ecosystems that use local materials such as earth and dry stone for the reconstruction of Al Haouz after the earthquake of 2023 with construction supported by the 2013 seismic regulations. The acceleration of R&D in green cements with alternative raw materials and raising awareness among engineering companies regarding the specification of natural materials is also part of diversifying supply and streamlining the value chain.
The council also emphasises the formalisation of retail depots (facilitators of self-build projects), strengthened oversight of concrete plants (mandatory certification, testing laboratories, OFPPT training), distinctive packaging for cement from the southern Provinces to combat diversion, promotion of bulk cement for equipped construction sites and an overhaul of quarry permitting procedures to secure access to remaining deposits. In addition, independent grinding units, which account for less than five per cent of the market, must benefit from a code of conduct, managed by the country's cement association APC and which extend the clinker and cement separation commitments to all integrated operators. To defend their interests, the grinding centres should create a professional association.
The role of independent grinding units should also be strengthened by rebalancing their representation based on two criteria:confirmation of the benefits of the technical requirements and proportionality to the objectives pursued. Integrated cement producers dominate the NM Cement brand advisory committee. It is also necessary to standardise the rules for incoming inspections to avoid competitive distortions. These measures aim to transform a concentrated market (80-90 per cent held by three operators) dependent on global energy costs into a more resilient, innovative and competitive ecosystem - key to controlling construction costs in the country.
Furthermore, to monitor prices and volumes in a transparent way, cement must be included in the Ministry of the Economy and Finance's price monitoring basket. The main driver of price increases in 2022, the sector's dependence on petcoke must be reduced by accelerating the transition to LNG and implementing regulations on the sulphur content of imports. The council also recommends the systematic recovery of waste in industrial processes and that research tax credits should support carbon capture, utilisation and storage.
