Summary
Morocco's textile and apparel sector is a cornerstone of the national economy, employing 246,000 people and generating MAD67.8 billion (approximately USD7.4 billion) in revenues. With 93 percent of textile exports flowing to the European Union, the sector's future is closely tied to the EU's tightening sustainability and circularity requirements. This report presents the conclusions of the Textile Circularity Exchange, a three-year initiative (2023–26) established by IFC to help Morocco navigate this transition by engaging the full textile value chain, from brands and factories to collectors and recyclers, in building circular systems for post-industrial cutting waste, known as chute.
Drawing on real-world pilot trials, a Life Cycle Assessment, and a first-of-its-kind survey of Tangier's collector ecosystem, the Exchange reached a clear and consequential conclusion: circularity in Morocco's textile sector is attainable. Pilot supply chains demonstrated that recycled-content fabric can meet commercial quality benchmarks, while the LCA found that even modest levels of recycled cotton deliver significant environmental gains, cutting climate impact by 18 percent and water use by 61 percent at just 20 percent recycled content. At the same time, the research identified persistent gaps in regulation, infrastructure, brand commitment, and financing that must be addressed before circularity can scale.
The report also sheds light on the informal collectors who underpin Morocco's textile waste collection system, a workforce that is over 80 percent informal, operates without legal recognition, and yet performs a role that factories depend on daily. With the right institutional support, up to 75 percent of these collectors could transition to formal status within five years, unlocking both social and economic value.
Set against Morocco's broader strategic priorities and the EU's evolving regulatory landscape, the report closes with targeted recommendations spanning regulatory reform, mandatory factory sorting, national traceability infrastructure, and blended finance mechanisms. Citing the World Bank Group's Country Private Sector Diagnostic (CPSD 2.0), it notes that realizing these reforms could attract US$1.9 billion in additional private investment and create 30,800 jobs, positioning Morocco as a regional leader in circular textile production.
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