Morocco Attracts Record FDI of $1.6B at end of May 2024

At the start of July 2024, the National Commission for Investment of Morocco released key figures about #FDI into Morocco. At the end of fiscal year ending May 2024, Morocco has attracted FDI worth MDH 173 billion (USD 16.1 billion). The figure represents a 20% increase compared to the previous year.

By some estimates, the 16 billion dollar investment covers a total of 115 projects and will lead to the creation of 96,000 jobs. Furthermore, 82% of the projects have entered implementation phase.

Sectoral Breakdown of Investments in Morocco
Sectoral Breakdown of Investments in Morocco

According to the Spokesperson of the Moroccan government, Mr Mustapha Baitas, this significant increase in FDI is also the second largest in the history of Morocco. It is too be recalled that Morocco managed to secure some USD 4.5 billion in FDI in 2007.

He attributes the excellent results to the enhancement of the business climate and Ease of Doing Business (#EDB). In particular, the government of Morocco has come up with a number of measures as follows:

  • Institutionalize a propitious legal framework for FDI
  • Implement a promotion strategy on regional basis
  • Provide targeted sectoral financial incentives
  • Promote Morocco as an ideal location for delocalization of industries

In addition, Morocco has set up an Inter-ministerial Committee on Investment in order to fast-track investment projects and remove administrative barriers for any project worth MDH 200 million (EUR 20 million). In complement to the Central Government ICI, several regions have also set up Regional Investment Centers to provide single-window service to investors.

Morocco's Interministerial Committee on Investments
Morocco’s Interministerial Committee on Investments

Since 2009, Morocco has signed the Declaration of OECD on International Investment and Multinational Enterprises. It is worth highlighting that Morocco has inked IPPA with 61 countries and enacted DTAT with 33 countries, of which 25 also adhere to the Marrakech Declaration. Morocco has ratified agreements pertaining to thee International Centre of Mediation and Arbitration (CIMAC), the World Bank Multilateral Investment Guarantee Agency (MIGA), and the Arab Investment and Export Credit Guarantee Corporation (Dhaman).

Recently, Morocco has been positioning itself as a manufacturing hub with easy access to EU, US and AfCFTA. As part of its #EnergyTranstion roadmap, Morocco has been promoting the development of Wind and Solar farms across the country and is also positioning itself as an #EV manufacturing hub with an eye on the lucrative EU market.