February 1, Casablanca Technopark, Casablanca, Morocco Fédération des Technologies de l’Information, des Télécommunications et de l’Offshoring Promoting Innovation and Entrepreneurship in the Middle East and North Africa: Strategies and Partnerships Track One Innovation and Entrepreneurship in the MENA Challenges & Strategies How can scaling up impact be achieved ? Regional perspectives from the private sector, industry players and professional associations M. Bachir RACHDI Chairman Apebi - Morocco February 1, Casablanca Technopark, Casablanca, Morocco Fédération des Technologies de l’Information, des Télécommunications et de l’Offshoring Promoting Innovation and Entrepreneurship in the Middle East and North Africa: Strategies and Partnerships

February 1, Casablanca Technopark, Casablanca, Morocco Fédération des Technologies de l’Information, des Télécommunications et de l’Offshoring Promoting Innovation and Entrepreneurship in the Middle East and North Africa: Strategies and Partnerships Objectives Highlight lessons from the private sector, industry players and organizations providing incubation, innovation and entrepreneurship services that are geared towards ensuring the growth of micro, small and medium enterprises (MSMEs) and their participation in economic activities. The Moroccan Case Study : Emergence Progress Contrat A national ICT strategy dedicated to the development of the ICT Moroccan industry February 1, Casablanca Technopark, Casablanca, Morocco Fédération des Technologies de l’Information, des Télécommunications et de l’Offshoring Promoting Innovation and Entrepreneurship in the Middle East and North Africa: Strategies and Partnerships

February 1, Casablanca Technopark, Casablanca, Morocco Fédération des Technologies de l’Information, des Télécommunications et de l’Offshoring Promoting Innovation and Entrepreneurship in the Middle East and North Africa: Strategies and Partnerships Structure Part 1 :The main obstacles for the growth of the moroccan ICT Sector : how can we go beyond ? Part 2 : The Emergence Progress Contrat : A model of partnership between the public and private sector Part 3 : Focus : Support to the innovation and R&D Part 4 :Focus : Financing and leverage funds February 1, Casablanca Technopark, Casablanca, Morocco Fédération des Technologies de l’Information, des Télécommunications et de l’Offshoring Promoting Innovation and Entrepreneurship in the Middle East and North Africa: Strategies and Partnerships

February 1, Casablanca Technopark, Casablanca, Morocco Fédération des Technologies de l’Information, des Télécommunications et de l’Offshoring Promoting Innovation and Entrepreneurship in the Middle East and North Africa: Strategies and Partnerships Part 1 The main obstacles for the growth of the moroccan ICT Sector How can go beyond ? February 1, Casablanca Technopark, Casablanca, Morocco Fédération des Technologies de l’Information, des Télécommunications et de l’Offshoring Promoting Innovation and Entrepreneurship in the Middle East and North Africa: Strategies and Partnerships

February 1, Casablanca Technopark, Casablanca, Morocco Fédération des Technologies de l’Information, des Télécommunications et de l’Offshoring Promoting Innovation and Entrepreneurship in the Middle East and North Africa: Strategies and Partnerships A real fact : Commitment of all within the framework of a real voluntary policy  Only the countries that undertook to implement a voluntary and global IT strategy are now benefiting from such policy and have an outstanding position in a globalisation context, dominated by the knowledge economy  All the assets of Morocco make it capable of holding a significant position in this so called knowledge technology 1- Public authorities would play role of the catalyser and facilitator 2- Private sector, as an engine for such development, would go further to next speed February 1, Casablanca Technopark, Casablanca, Morocco Fédération des Technologies de l’Information, des Télécommunications et de l’Offshoring Promoting Innovation and Entrepreneurship in the Middle East and North Africa: Strategies and Partnerships

February 1, Casablanca Technopark, Casablanca, Morocco Fédération des Technologies de l’Information, des Télécommunications et de l’Offshoring Promoting Innovation and Entrepreneurship in the Middle East and North Africa: Strategies and Partnerships How can we go beyond the main obstacles ?  Lack of support for Innovation & Research-Development  Need of more specific technopoles and incubators dedicated to the ICT and Offshoring sector  Legal and financial incentives The answer : Emergence Progress Contrat A gentleman agreement between the main public and private actors dedicated to the development of the Moroccan ICT sector and the information society February 1, Casablanca Technopark, Casablanca, Morocco Fédération des Technologies de l’Information, des Télécommunications et de l’Offshoring Promoting Innovation and Entrepreneurship in the Middle East and North Africa: Strategies and Partnerships

February 1, Casablanca Technopark, Casablanca, Morocco Fédération des Technologies de l’Information, des Télécommunications et de l’Offshoring Promoting Innovation and Entrepreneurship in the Middle East and North Africa: Strategies and Partnerships Part 2 The Emergence Progress Contrat A model of partnership between the public and private sector February 1, Casablanca Technopark, Casablanca, Morocco Fédération des Technologies de l’Information, des Télécommunications et de l’Offshoring Promoting Innovation and Entrepreneurship in the Middle East and North Africa: Strategies and Partnerships

February 1, Casablanca Technopark, Casablanca, Morocco Fédération des Technologies de l’Information, des Télécommunications et de l’Offshoring Promoting Innovation and Entrepreneurship in the Middle East and North Africa: Strategies and Partnerships Main principles and targets for 2012  Pull up the development of the Information Society  Ensure the positioning of Morocco to gain international recognition as a hub for technological ICT offshoring activities  Participation to the economic growth and the creation of job opportunities  Building up a strong ICT industry and a significant and performant national ICT know-how A voluntary public policy, in charge of the development of the Moroccan ICT industry and the Information Society, has been drawn both by Apebi and the Ministry of Economic and General Affairs February 1, Casablanca Technopark, Casablanca, Morocco Fédération des Technologies de l’Information, des Télécommunications et de l’Offshoring Promoting Innovation and Entrepreneurship in the Middle East and North Africa: Strategies and Partnerships

February 1, Casablanca Technopark, Casablanca, Morocco Fédération des Technologies de l’Information, des Télécommunications et de l’Offshoring Promoting Innovation and Entrepreneurship in the Middle East and North Africa: Strategies and Partnerships Related targets  A turnover amounting to MAD 80 billion in 2012 (Telecom & Offshoring) - Telecom: more than MAD 38 billion - National ICT Industry: more than MAD 20,9 billion (Including MAD 8 billion at export) - Offshoring: more than MAD 21,1 billion  Creation of 125,000 job opportunities in the ICT sectors in 2012 (including 90,000 related to Offshoring) - ICT Industry: 33,000 job opportunities - Offshoring: 90,000 job opportunities February 1, Casablanca Technopark, Casablanca, Morocco Fédération des Technologies de l’Information, des Télécommunications et de l’Offshoring Promoting Innovation and Entrepreneurship in the Middle East and North Africa: Strategies and Partnerships

February 1, Casablanca Technopark, Casablanca, Morocco Fédération des Technologies de l’Information, des Télécommunications et de l’Offshoring Promoting Innovation and Entrepreneurship in the Middle East and North Africa: Strategies and Partnerships Investment Vs Return On Investment  An average investment amount of MAD1,4 billion for the whole action plan  A real return of investment ensured for the Government - Output : more than MAD 10,5 billion of taxes revenues from 2006 to 2012) February 1, Casablanca Technopark, Casablanca, Morocco Fédération des Technologies de l’Information, des Télécommunications et de l’Offshoring Promoting Innovation and Entrepreneurship in the Middle East and North Africa: Strategies and Partnerships

February 1, Casablanca Technopark, Casablanca, Morocco Fédération des Technologies de l’Information, des Télécommunications et de l’Offshoring Promoting Innovation and Entrepreneurship in the Middle East and North Africa: Strategies and Partnerships An operational action plan based on real facts and datas  Support to the innovation and R&D  Upgrading the access to the domestic market for the national ICT operators  Financing and leverage funds  Support and Accelerate the e-government policy  Attract foreign investments and support export and international promotion  Training and human resources development  Ensure the creation of technopoles  Establishment of a digital confidence environment  Support the development of Internet in Morocco  Sustain the liberalization of the telecom sector and the development of dedicated infrastructures February 1, Casablanca Technopark, Casablanca, Morocco Fédération des Technologies de l’Information, des Télécommunications et de l’Offshoring Promoting Innovation and Entrepreneurship in the Middle East and North Africa: Strategies and Partnerships

February 1, Casablanca Technopark, Casablanca, Morocco Fédération des Technologies de l’Information, des Télécommunications et de l’Offshoring Promoting Innovation and Entrepreneurship in the Middle East and North Africa: Strategies and Partnerships Organisation and operation  Identification of the main financial resources in process  Creation of a stakeholders Committee led by the Prime Minister  Ministry of Economic and General Affairs  Ministry of Industry and Commerce  Ministry in charge of the Modernisation of the Public Sectors  DEPTTI – Department of Post, Telecommunications and Information Technologies  E-Gov National Comity  Directorate of Foreign Investment  ANRT – National Agency for the Regulation of Telecommunications  CETIC – Moroccan Centre for Information Technologies and Communication for Companies  National Agency for the promotion of SMEs  General Confederation of Moroccan Companies  Vocational Training and Employment Promotion Office February 1, Casablanca Technopark, Casablanca, Morocco Fédération des Technologies de l’Information, des Télécommunications et de l’Offshoring Promoting Innovation and Entrepreneurship in the Middle East and North Africa: Strategies and Partnerships

February 1, Casablanca Technopark, Casablanca, Morocco Fédération des Technologies de l’Information, des Télécommunications et de l’Offshoring Promoting Innovation and Entrepreneurship in the Middle East and North Africa: Strategies and Partnerships Part 3 The Emergence Progress Contrat Focus Support to the innovation and R&D 750 Dhs million over 5 years February 1, Casablanca Technopark, Casablanca, Morocco Fédération des Technologies de l’Information, des Télécommunications et de l’Offshoring Promoting Innovation and Entrepreneurship in the Middle East and North Africa: Strategies and Partnerships

February 1, Casablanca Technopark, Casablanca, Morocco Fédération des Technologies de l’Information, des Télécommunications et de l’Offshoring Promoting Innovation and Entrepreneurship in the Middle East and North Africa: Strategies and Partnerships Support to the innovation and R&D  Principle : A division of the risk between the companies which wish to invest on innovating projects, and the State, by a direct financing. The refunding of the financed amount (50 % of total) is conditioned by technical and commercial successes  2 models of approach : Top – Down or Bottom – Up  Investment amount : MDhs over 5 years - 45 Mdhs in Will evolve/move gradually to reach 280 MDhs in 2010 February 1, Casablanca Technopark, Casablanca, Morocco Fédération des Technologies de l’Information, des Télécommunications et de l’Offshoring Promoting Innovation and Entrepreneurship in the Middle East and North Africa: Strategies and Partnerships February 1, Casablanca Technopark, Casablanca, Morocco Fédération des Technologies de l’Information, des Télécommunications et de l’Offshoring Promoting Innovation and Entrepreneurship in the Middle East and North Africa: Strategies and Partnerships

February 1, Casablanca Technopark, Casablanca, Morocco Fédération des Technologies de l’Information, des Télécommunications et de l’Offshoring Promoting Innovation and Entrepreneurship in the Middle East and North Africa: Strategies and Partnerships Part 4 The Emergence Progress Contrat Focus Financing and leverage funds 590 Dhs million over 5 years

February 1, Casablanca Technopark, Casablanca, Morocco Fédération des Technologies de l’Information, des Télécommunications et de l’Offshoring Promoting Innovation and Entrepreneurship in the Middle East and North Africa: Strategies and Partnerships Financing and leverage funds  Principle : Incite with the creation of job and the investment in the R&D and the actions of opening of the markets to export  Refundable Research Credit Tax : The credit is calculated in % of the expenditure of R/D: - To a total value of 70% of the total of this expenditure during the first 5 years - To a total value of 50% of their increase of one year on the other, beyond the 5 years February 1, Casablanca Technopark, Casablanca, Morocco Fédération des Technologies de l’Information, des Télécommunications et de l’Offshoring Promoting Innovation and Entrepreneurship in the Middle East and North Africa: Strategies and Partnerships

February 1, Casablanca Technopark, Casablanca, Morocco Fédération des Technologies de l’Information, des Télécommunications et de l’Offshoring Promoting Innovation and Entrepreneurship in the Middle East and North Africa: Strategies and Partnerships Financing and leverage funds  Principle : Incite with the creation of job and the investment in the R&D and the actions of opening of the markets to export  Reductions of the loads on wages for the new created jobs. The first employment contract : - Exemption of the loads on wages for 24 months plus one year additional, with a ceiling of 6000 Dh. - Measurement integrating the new graduates February 1, Casablanca Technopark, Casablanca, Morocco Fédération des Technologies de l’Information, des Télécommunications et de l’Offshoring Promoting Innovation and Entrepreneurship in the Middle East and North Africa: Strategies and Partnerships

February 1, Casablanca Technopark, Casablanca, Morocco Fédération des Technologies de l’Information, des Télécommunications et de l’Offshoring Promoting Innovation and Entrepreneurship in the Middle East and North Africa: Strategies and Partnerships Financing and leverage funds  Principle : To facilitate the access to the direct and indirect financing for SME of the sector  Form financings : - Cofinancings of material and immaterial credits - Requirements for treasury met by guaranteed loans (in particular for the companies providing the public sector) - Guarantee of the investments in particular to support the reinforcement of the own capital stocks  Financings : - Creation of funds of specialized financing and guarantee TIC or not - Use of existing funds and/or their adaptation February 1, Casablanca Technopark, Casablanca, Morocco Fédération des Technologies de l’Information, des Télécommunications et de l’Offshoring Promoting Innovation and Entrepreneurship in the Middle East and North Africa: Strategies and Partnerships

February 1, Casablanca Technopark, Casablanca, Morocco Fédération des Technologies de l’Information, des Télécommunications et de l’Offshoring Promoting Innovation and Entrepreneurship in the Middle East and North Africa: Strategies and Partnerships Thanks for your attention Moroccan Information Technologies, Telecommunications and Offshoring Federation جمعية مهنيي تكنولوجيا المعلومات February 1, Casablanca Technopark, Casablanca, Morocco Fédération des Technologies de l’Information, des Télécommunications et de l’Offshoring Promoting Innovation and Entrepreneurship in the Middle East and North Africa: Strategies and Partnerships