May 30, 2023

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Morocco is an African hub for foreign investment

By Fatin El FatinI am

Morocco’s main objective is to improve the investment climate. In this sense, the kingdom has devised various strategies to strengthen its attractiveness and encourage foreign investment. Kearney’s latest Foreign Direct Investment Confidence Index 2023 helped position Morocco as the 2nd most attractive African country for investors according to the “FDI Confidence Index”.

Morocco is part of a path that puts investment at the center of a new growth model. Therefore, many reforms and initiatives have been undertaken by the government to create a more favorable business environment and make the Kingdom an attractive destination for Foreign Direct Investment (FDI).

With this in mind, on December 6, 2022, the Executive promulgated n°03.22 Structural Law creating the Investment Charter. The charter promises to revolutionize state policy in terms of growth and investment promotion. This is what Stephen Orr, President of the British Chamber of Commerce in Morocco (BRITSAM) said during a webinar held on April 13.

“New investment charter published in December 2022 creates a strategic roadmap to breathe new life into investment in Morocco”. And to continue: “This will make it possible to make Morocco a more competitive economy,” he said.

In addition to issuing a new investment charter, the administration has also initiated economic reforms and is working to consolidate Morocco’s legal framework to strengthen its attractiveness. Knowing that the country has strong potential to attract investors.

In fact, thanks to advanced infrastructure, highly qualified human resources and a strategic position that provides access to potential markets around the world, the Kingdom manages to provide a favorable business environment and enormous opportunities for companies and foreign investors. This has helped record a steady increase in FDI flows in recent years.

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31.5% increase in foreign direct investment

Actions taken by Morocco in line with High Government instructions are already beginning to bear fruit. Data from the Office des Changes clearly attests to this. In fact, the monthly indicators of foreign trade for the month of February show that FDI inflows increased by 19.8% or more than 830 MDH to 5,028 MDH at the end of February 2023, from 4,198 MDH at the end of February 2022. By the end of February 2023.

Hence, the net flow of FDI increased by 53.6% and recorded 3,368 MDH as against 2,192 MDH at the end of February 2022.

Morocco is the 2nd most attractive African country for investors

According to Gurney’s Foreign Direct Investment Confidence Index 2023 (FDICI), Morocco has made progress to become one of the 20 most attractive emerging countries for investment.

In fact, the Kingdom overtook South Africa to become the second most attractive African country for investors, after Egypt and ahead of South Africa, thus ranking 16th in the TOP25 of emerging markets.

China, India, United Arab Emirates, Qatar, Thailand and Saudi Arabia occupy the top six positions in the emerging market rankings.