Morocco

Brighten Consulting, Morocco – Global Accounting Alliance Member

Economic Overview & Business Opportunities – Morocco

Morocco is a bustling gateway into Africa, with one of the largest commercial shipping ports in the Mediterranean. Its dynamic infrastructure, rich and diverse cultural heritage and business-friendly ecosystem make Morocco a sought-after international business hub. It also has just the right mix of policies and incentives to create exciting business opportunities in Morocco. 

With a population of 37.8 million people, Morocco is part of western North Africa. It enjoys a strategic geopolitical location connecting the Middle East, Europe, and Sub-Saharan Africa. Morocco has a long historical lineage that includes the Roman Empire, an Arab conquest, and a French protectorate. Gaining its independence in 1956, the country is now a monarchy under the rule of King Mohammed VI.

 

The Economy of Morocco

Morocco’s international presence is gaining in strength with its 2021 African Continental Free Trade Area launch. The country’s gross domestic product (GDP) shows rebound growth with a forecast of USD122 billion by 2023. Morocco’s economy, the sixth largest in Africa, primarily relies on the services industry. This sector is responsible for 54% of the overall GDP, contributing significantly to the economy.

Agriculture is another traditional sector, and the Government’s Green Generation Plan is driving its expansion with foreign direct investment (FDI). Morocco’s main exports in 2022 include phosphates, textiles, citrus fruits, vegetables, fish, and electric components. However, other industries, such as automotive, aerospace, electronics, etc., are starting to attract serious investment. Topping the list is vehicles and aircraft, with a 13.8% and 3.1% increase in export value in 2021.

Morocco’s export partners include France, Spain, Brazil, Italy, the US, Germany, and India. Relevant figures relating to its economic performance as of mid-2022 include the following:

• Total exports of USD3 billion 
• Total imports of USD6.2 billion 
• Lower unemployment averaging 11.2% 
• Foreign exchange reserves of USD31 billion

While the war in Ukraine and extreme weather are having an impact on the economy, its monetary policies remain stable. Tourism and industrial performance are on an upward trajectory of post-pandemic recovery. The Government’s commitment to fiscal stability contributes to a steady economic front, greater job creation, and business opportunities in Morocco.

 

Why Invest in Morocco

Morocco continues to strengthen its standing in international business with robust economic plans. Its macroeconomic recovery policies, strategic reforms, and strong manufacturing exports continue to drive business opportunities in Morocco. The Government’s strategy centres on the New Development Model 2021 and the Mohammed VI Fund. These schemes aim to position Morocco as the ideal destination for entrepreneurs and investors by:

• Increasing and encouraging equity investments
• Modernising state-owned enterprises 
• Enhancing job creation
• Raising industrial and manufacturing performance
• Supporting SMEs (small and medium enterprises) in strategic industries
• Promoting projects and financing commercial infrastructure developments

Morocco is known for its active investment incentives and strategies, including focusing on renewable energy. It also has a bilateral Free Trade Agreement with the US, strengthening business and investment opportunities. Along with its trade liberalisation policies, Morocco is the future of international business in this part of the world.