Morocco’s diverse economy is attracting US businesses seeking to expand their footprint in Africa
Over the past two decades, Morocco has undergone exciting changes, positioning itself as a premier destination for US businesses to invest.
A new model for investment
In an era marked by economic shifts and evolving investment landscapes, Morocco stands as a beacon of opportunity for US investors.
With domestic stability and strong governance, Morocco’s positive momentum has been turbocharged by the royal vision of His Majesty the King Mohammed VI to develop a sustainable economy and an inclusive society. The agenda, which has led to significant public investment and infrastructure development, frames Morocco as a gateway for unparalleled business opportunities, particularly for the US, which overtook France as Morocco’s top foreign investor in 2022.
Morocco’s visionary economic transformation is underlined by a suite of policies that the US International Trade Administration (ITA) recently described as having “boosted employment, attracted foreign investment, and raised performance in key revenue-earning sectors.” These policies have seen billions of dollars poured into modern infrastructure development. Ports, airports, and rail links have all been radically transformed, connecting the country’s various economic regions like never before. Tanger Med now ranks in the top 20 busiest global container ports, according to maritime analysis company Alphaliner, creating 184 connections to over 71 countries.
Climate strategy has also been a major priority over the past 25 years. Aligned with the United Nations Sustainable Development Goals, recent projections indicate that 52% of the Kingdom’s power capacity will be sourced from renewable sources by 2030. Furthermore, its wind and solar potential opens the possibility of exporting green energy to neighboring regions, including Europe, and creating investment opportunities while doing so.
International collaboration and economic agreements have further enhanced Morocco’s reputation as a place to do business.
Morocco stands as a beacon of opportunity for US investors.
The country’s participation in the 2022 US Africa Summit has boosted investor confidence, along with an upcoming roadshow across the States and the US Africa Business Summit in Dallas in May 2024. Meanwhile the landmark US-Morocco Free Trade Agreement (FTA) has eliminated tariffs on 95 percent of qualifying consumer and industrial goods. This has led to a significant increase in bilateral trade, providing US businesses with even more opportunities to engage in Morocco’s economy.
Each of these developments, both at home and abroad, paints a portrait of a nation that is not only embracing stability and innovation but also championing sustainability. With every step forward, Morocco beckons investors with a promise of untapped potential.
An invitation to prosperity
Morocco’s appeal to US investors is best understood through the success stories of three pivotal industries – aeronautics, automotive, and digital – each of which contributes to what makes Morocco unique.
As one of the country’s fastest-growing sectors, aeronautics plays a significant role in the global field. With a young, dynamic workforce, Morocco covers parts production for major US commercial aircraft programs, including Boeing. Meanwhile, its strategic position at the crossroads of Europe, Africa, and the Middle East provides US companies with a unique opportunity to tap into a bourgeoning aero market with strong potential returns.
Morocco’s automotive sector has also undergone a remarkable transformation, fueled by a commitment to sustainability and supply chain optimization.
From producing fewer than 60,000 cars in 2010 to reaching a record production of close to 600,000 in 2023, the transformation of Morocco into Africa’s largest exporter of cars is a story of determination and innovation. The country has developed its auto industry around the future of car manufacturing, investing in everything from cobalt extraction to electric battery production. With the industry now employing over 220,000 highly skilled workers, and expectations to export over $14 billion worth of vehicles and automotive components in 2024, the auto sector continues to be a shining light in Morocco’s proposition to US businesses.
With every step forward, Morocco beckons investors with a promise of untapped potential.
Finally, in the digital arena, technological modernization is positioning Morocco as a regional leader in telecommunications and innovation. With public services evolving through digital transformation, and plans to deploy 5G across the country, Morocco offers a unique opportunity for US technology companies looking for a foothold in Africa.
From the data center market, which is estimated to be worth $51 million by 2028, to collaborations with US industry leaders like Oracle, Cisco, and IBM, which have contributed an estimated $2 billion in revenue, every year sees Morocco’s tech credentials grow.
Seize the opportunity
As the gateway to Africa, the commercial potential of Morocco is clear to US businesses looking to capitalize on new opportunities.
Multifaceted economic reforms and international collaboration have stimulated transformative growth within key innovation sectors. And as relations between the two countries continue to strengthen, the allure of Morocco shows no sign of slowing down.