Morocco’s textile waste recycling sector could attract $1.9 billion, IFC says

Morocco’s textile waste recycling sector could attract up to $1.9 billion in private investment and create more than 30,000 jobs, according to a report by the International Finance Corporation.

The findings come from a pilot program titled “Morocco Textile Circularity,” conducted in partnership with the Ministry of Industry and Commerce, the Moroccan Textile and Apparel Industry Association and the Spanish and Dutch embassies. Results were presented Tuesday in Rabat.

During the pilot phase, 427 metric tons of textile off-cuts were converted into new production materials, while an additional 2,400 tons were directed into recycling channels, exceeding initial targets, the IFC said.

The report found that fabrics incorporating recycled materials met commercial quality standards across all tested criteria, indicating they can be reintegrated into production without compromising finished products.

The environmental benefits are also significant. The use of recycled materials could reduce carbon emissions by about 18% and cut water consumption by more than 60% compared with conventional manufacturing processes.

However, the report highlights structural challenges within the sector. More than 80% of textile waste collectors operate in the informal economy. The IFC estimates that up to 75% could transition to the formal sector within five years with adequate institutional support.

The push for reform is partly driven by evolving European regulations. The European Union’s digital product passport is expected to take effect in 2027, alongside mandatory extended producer responsibility systems for textiles across member states. The EU currently accounts for 93% of Morocco’s textile exports.

The IFC recommends reclassifying industrial textile off-cuts as byproducts rather than waste, reforming customs rules to allow international brands to transfer ownership of materials to Moroccan manufacturers, and developing domestic spinning capacity to process recycled fibers locally instead of exporting them.