“The country has attracted around 40 billion dollars in greenfield industrial investments since 2020, placing it among the world’s top beneficiaries,” the publication noted in an article published Thursday under the title “Morocco is now a commercial and industrial power”.
As a direct result, Moroccan exports have jumped by two-thirds in the past five years, The Economist pointed out, highlighting the decisive role of investor-friendly policies driven by His Majesty King Mohammed VI.
According to the magazine, “the government has heavily invested in electricity production, ports, railways, roads, and solar infrastructure. Between 2001 and 2017, Morocco dedicated between 25% and 38% of its annual spending to such projects, one of the highest rates in the world.”
“These efforts made it possible, among other things, to launch a high-speed train running along the country’s west coast. On the road leading to Tanger Med, drivers pass endless wind and solar farms, as well as special economic zones ready to welcome investors,” the article added.
From Tanger Med, which is set to expand further in line with the country’s ambitions, ships depart every hour for Europe carrying vehicles, auto parts, and industrial components. Further south in Kenitra, an industrial zone hosts Stellantis, Lear (a leading U.S. supplier), Faurecia (a European auto parts group), and Nexteer (Chinese-owned), The Economist reported.
Thanks to the free trade agreement signed with the European Union in 2000, followed by preferential agreements with 60 other countries, Morocco has succeeded in attracting “major investments from carmakers such as Renault and then Stellantis,” the magazine explained, noting that this momentum also encouraged suppliers like Yazaki, a components manufacturer, to set up operations in the country.
Last year, Morocco became the leading exporter of cars and spare parts to Europe, ahead of China and Japan, a success the country is determined to replicate in other industries such as aerospace and pharmaceuticals, with more than 50 high value-added sectors in its sights, according to The Economist.
Since 2012, automakers have invested over 8 billion dollars in Morocco, nearly a quarter of all foreign investments, supported by groups such as U.S.-based International Paper in the packaging sector, the magazine added.
In Kenitra, SIMRA manufactures parts for Airbus, Bombardier, and Safran that represent 5% of an A320’s value, while in Fez, Alstom produces electrical housings and railway cables, The Economist noted.
“These activities make the EU Morocco’s top trading partner, but investments from China are also pouring in. Chinese companies have announced at least 10 billion dollars in projects related to electric vehicles and batteries, representing about 5% of total global investment under the Belt and Road Initiative over the past two years,” the magazine wrote.
Highlighting Morocco’s geographic position at the gateway to Europe and the northern entry point to Africa, the publication also recalled the country’s leadership in developing a 5,600 km gas pipeline linking Nigeria and crossing 11 other countries.
At Casablanca Finance City, a financial hub oriented toward the continent, companies such as South Korea’s POSCO and France’s Engie have already established themselves, the magazine underlined, noting that this momentum confirms Morocco’s determination to become a major industrial and commercial hub.
With massive investments, a strategic location, and investor-friendly policies, Morocco is consolidating, The Economist stressed, its position as an essential industrial and commercial hub, capable of attracting Europe, Africa, and Asia alike, while continuing to climb the ranks of the global economy.
Editorial team/le7tv