Moroccan textile sector accelerates transition to circular economy with IFC support

The Moroccan textile industry is taking a significant step towards a more sustainable future, driven by a strategic transition to a circular economy model. With the support of a $1.7 million program funded by the International Finance Corporation (IFC), the sector is aiming to establish a recycling and waste valorization system for post-industrial waste.

Addressing Environmental and Commercial Challenges

As a key pillar of the Moroccan economy, the textile sector faces increasing environmental and commercial pressures. Growing international regulations, particularly those under the European Union's Green Deal, are pushing industry players to rethink their production methods. In response, the IFC is helping the sector by promoting circular economy practices to reduce the environmental footprint of businesses.

The initiative, running through 2027, focuses on minimizing losses from the manufacturing process, such as fabric trimmings, unsold stock, and non-compliant products. The goal is to integrate these materials into a sustainable value chain, reducing environmental impact and enabling Moroccan businesses to meet stringent market standards for circularity.

A Strategic Move for Sector Competitiveness

Adopting circular practices is a critical factor for the competitiveness of the Moroccan textile industry. By cutting waste and lowering its carbon footprint, this transition aligns with Morocco's decarbonization strategy and addresses the rising demands of international buyers. The European Union, Morocco's primary trading partner in this area, is enforcing increasingly stringent sustainability criteria through its Green Deal.

This project also aims to build the sector's capacity by providing technical and financial support. The IFC is working with the Moroccan Association of Textile and Apparel Industries (AMITH) and the Ministry of Industry to raise awareness among companies about circular practices and help them secure a supply of recycled raw materials.

Towards a Comprehensive Sustainable Textile Chain

This initiative is part of a broader strategy that began in April 2023 with an agreement between the IFC, the Ministry of Industry, and AMITH focused on the sustainable development of Moroccan textiles. In February 2024, another partnership was established with the Moroccan Agency for Investment and Export Development (AMDIE) to encourage private investments in sustainable textiles.

A 2023 report from the IFC and AMITH outlined several recommendations to build a circular value chain, including creating an efficient system for collecting post-industrial waste, modernizing recycling infrastructure, and developing upstream systems for better product traceability. It also encouraged manufacturers to strengthen their collaboration with the EU to enhance export opportunities.

With the backing of the IFC and the mobilization of national stakeholders, the Moroccan textile sector is gradually establishing itself as a model of sustainability and innovation, strengthening its competitiveness in the global market.