At the crossroads of Europe, sub-Saharan Africa and the Middle East, Morocco has been actively working to transform itself into a regional business hub by leveraging its strategic geographical location, political stability and world-class infrastructure to expand as a manufacturing and export base for international companies. The Moroccan government is implementing strategies aimed at boosting employment, performance and output as well as attracting foreign investment in key revenue-earning sectors, with an emphasis being placed on value-added industries such as renewables, automotive, aerospace, textiles, pharmaceuticals, outsourcing and agribusiness. All these policies are included in the vision- ary New Development Model released in April 2021, while a new investment charter has recently obtained parliamentary approval, broadening and improving the investment framework.
According to recent data from Morocco’s foreign trade watchdog, the Exchange Office, in the first half of 2022 the country received $578 million in investments from the US, which is now outpacing France as Morocco’s largest foreign investor. In the past 15 years, US investment into Morocco has been on a steady increase, having risen from $214 million at the end of 2007. Overall, Morocco’s industrial sectors have attracted the largest volume of foreign direct investment, followed by real estate.
Having rebounded strongly from the COVID-19 pandemic in 2021, the Moroccan economy experienced a confluence of negative shocks in 2022, from the impact of a severe drought on agricultural production to the impact of trade shocks resulting from the war in Ukraine, which fuelled inflation. But the recovery of tourism, strong remittances and resilient exports have partially offset these shocks. According to the latest IMF report issued in October 2022, GDP growth is projected at around 1.25% in 2022 and, assuming a gradual improvement of external conditions plus an average agricultural season, growth should accelerate to around 3% in 2023.
While the country has cemented its reputation as an international travel destination thanks to its blend of culture and amazing landscapes, more needs to be written about Morocco’s outstanding economic development and huge emphasis on ESG goals, including a determined national policy for reducing carbon emissions and fighting against climate change. The fact that the country is becoming a destination of choice for American firms wanting to benefit from its openness to investment and agile business environment also deserves wide and detailed coverage. Our project — Morocco: A business platform for Europe, Africa and the Middle East — will be published with USA Today and will provide this coverage.