The project

In July 2023, STOA invested €30 million in the Morocco-based FMCG logistics company Building Logistics Services (BLS), a subsidiary of H&S Group. The proceeds will contribute to funding the company’s development plan.

This transaction is STOA’s second investment in Morocco and its first in the logistics sector.

What’s at stake

Improving the competitiveness of the Moroccan logistics sector

In 2008, Morocco launched its National Strategy for the Development of Logistics Competitiveness. Since then, the country has initiated several projects aimed at developing transport infrastructures and upgrading logistics services. This strategy’s goal is to accelerate growth through the development of a competitive logistics sector, facilitated by the improvement of urban logistics and promotion of logistics outsourcing to specialized third-party logistics (3PL) players.

BLS is a major 3PL player, particularly active in the FMCG and pharmaceutical sectors. As of today, the company mostly cover the Casablanca-Settat region. BLS is however looking to expand its footprint in order to provide its customers with a high value-added service through better geographical coverage. In particular, the company will be broadening its offer for the pharmaceutical sector, one of the fastest growing in Morocco. It plans to build 7 new warehouses, most of which will be in the northern part of the country or in its inland regions.

A key project for the Sustainable Development Goals

BLS’s activities will contribute to improving trading infrastructures through the construction of new warehouses and to optimizing distribution channels through infrastructure pooling and distribution network integration. This will help reduce the country’s logistics costs, which currently amount to roughly 20% of its GDP. These projects will thus contribute to achieving Sustainable Development Goals 8 (decent work and economic growth) and 9 (Industry, Innovation and Infrastructure).

With STOA’s support, BLS will also be implementing a sustainability plan for its activities. It will include actions such as reducing energy consumption, improving warehouse technical characteristics, and promoting renewable energy (e.g., rooftop solar power).

This transaction is also in line with STOA’s commitment to channel at least 50% of its investments towards African markets.

Expected outcomes

• More than 170,000 m² of warehouse capacity;
• implementation of a sustainability plan.