Morocco is increasingly becoming an important industrial player in the EMEA region due to its location as it serves as a stepping stone to Africa and the Middle East.
Having experienced an average growth of 4.4% in its GDP over the last 15 years, there are strong indications that its economic growth in Morocco will continue to improve. Being the third largest recipient of foreign investment in 2014, the nation is favorable for its financial services and telecommunication sectors.
Top exports to Morocco
Trade agreements have eased the state of imports as well as exports to and from other countries. Morocco has trade agreements with the EU, US, Turkey, and the Arab nations.
As per country data, top exports in 2019 were:
- Machinery– 18.1%
- Vehicles– 13%
Morocco has also shown progress in the following areas:
- It is rated as the 3rd most friendly country in the world
- 74% of all Moroccans have access to the internet
- Duty free access is provided to one billion consumers
Measures to strengthen the macroeconomic base have resulted in decrease in budget and current account deficits. Morocco has maintained its macroeconomic stability and shown positive growth. Morocco has maintained an average GDP growth between 5% and 10% from 2000 to 2014. It has kept inflation below 5% during this phase as well as reduced the public debt from 63% in 2015 to 66% in 2019.
Foreign direct investment in Morocco and North Africa
Morocco is the leader in FDI in North Africa. Historic ties and close proximity to Western Europe, a proactive FDI policy and having more skilled workers available as compared to most developed markets have benefited Morocco. It is increasingly considered as a favorable gateway for investors from US and Europe to invest in the fast growing African continent. This is due to its stable business environment and support services, combined with good air links to many other African countries.
Promising investment opportunities in Morocco
The most promising sectors in Morocco are as follows:
- Cancer care
- Renewable energy
Morocco as superpower in renewable energy
Morocco plans to fulfill half of its energy needs using renewable energy resources by 2030. A bill has been approved by the Moroccan government to raise its target share of renewable energy from 42% by 2020 to 52% by 2030.
Additional features include:
- Morocco is currently building the world’s largest solar power plant with a total capacity of 580MW of electricity.
- Morocco’s hydropower capacity plans to increase from 80 MW in 2010 to 2000 MW in 2020 using small and medium size wind energy farms.
- GDF Suez and Nareva will start the construction of the 300 MW Tarfaya wind farm in Morocco, which will be the largest wind project in Africa.
- Morocco will also host the upcoming 22nd Conference of the Parties (COP22) in November 2016. This conference will focus on innovation in adaptation to climate change and mitigation of climate change effects.
In the current scenario, it’s helpful to engage the services of a professional market research agency to facilitate the process for domestic as well as international market players.