Morocco's Textile Recycling Push Could Create 30,000 Jobs

More than 80 percent of Morocco's textile waste collectors currently work in the informal economy, often without stable income or legal protections.

Morocco is emerging as a promising player in textile recycling after a pilot program demonstrated that turning factory textile waste into new materials can work on a commercial scale while opening the door to major economic opportunities. The initiative, carried out through the Morocco Textile Circularity program led by the International Finance Corporation (IFC), found that expanding textile recycling across the country could attract nearly US$1.9 billion in private investment and support the creation of more than 30,000 jobs.

The results exceeded expectations. During the pilot phase, 427 metric tons of textile offcuts were transformed into new manufacturing materials, while an additional 2,400 tons were secured for future recycling activities. Tests carried out on fabrics made with recycled content showed that they met standard quality requirements, allowing manufacturers to use them in production without sacrificing performance or durability.

Environmental gains add momentum to industry transformation

The findings highlight environmental benefits alongside economic returns. A life-cycle assessment conducted during the program showed that recycled textile materials can cut carbon emissions by roughly 18 percent compared with conventional production methods. Water consumption also dropped by more than 60 percent, offering a practical solution for an industry facing growing pressure to reduce its environmental footprint.

These results arrive at a critical time for Morocco's textile sector, which relies heavily on exports to the European Union. The EU accounts for 93 percent of Morocco's textile exports and is introducing stricter sustainability requirements for suppliers. New rules such as the Digital Product Passport, scheduled to take effect in 2027, will require greater transparency regarding how products are made, tracked, and recycled throughout their lifecycle.

Formalizing waste collection could strengthen livelihoods

More than 80 percent of Morocco's textile waste collectors currently work in the informal economy, often without stable income or legal protections. Research conducted through the program suggests that as many as three-quarters of these workers could move into formal employment within five years if supportive policies and institutions are put in place.

Industry leaders believe the groundwork for growth has already been established. David Tinel, IFC Regional Manager for the Maghreb, said the pilot project provides clear evidence that Morocco can build a competitive textile recycling industry while creating jobs and strengthening its position in sustainable manufacturing.

The program's recommendations include changing regulations so factory textile offcuts are treated as industrial by-products rather than waste, updating customs rules that would allow brands to transfer ownership of unused materials to local manufacturers, creating a national traceability platform aligned with EU requirements, and expanding domestic spinning capacity to keep more recycling activity inside the country.

The initiative brought together government ministries, customs authorities, industry representatives, international brands, factories, recyclers, and waste collectors, creating Morocco's first coordinated platform focused on textile circularity and laying the foundation for a more sustainable and inclusive industry.