Casablanca Finance City (CFC) officially launched in December 2010 to serve as an economic and financial hub in Morocco.
The project is eminently regarded due to its ability to connect African businesses with foreign investors. In my view, CFC has played a key role in driving investments into Africa partly because of its strategic positioning within the continent as well as, political stability in the country.
The financial centre was formed under Law No.44-10 which granted CFC to be established in Casablanca. The Morrocan government also created the Casablanca Finance City Authority, an organisation responsible for promoting and regulating business activities in the financial centre.
Undoubtedly, CFC’s robust approach has served its purpose in driving business into the continent. Take for example its attract incentives for companies with CFC status. Companies registered under CFC are exempt from paying corporate tax in the first 5 years and a rate of 8.75% is applied thereafter. CFC also offers exchange control facilitation measures in which companies can export capital easily to distribute dividends and cover technical fees. Other incentives in place include fast-tracked administrative and work permit procedures.
Since its launch multinational firms such as Boston Consulting Group, BNP Paribas and DLA Piper have been granted CFC status. The centre currently host over 150 companies most of which are Europe-based. It’s fair to say that the centre’s achievements are recognised globally – since 2015 it has been ranked the number one African financial centre in the Global Financial Centres Index.
Emmanuel Chilamphuma is a Senior Analyst at Edgebold Capital