Casablanca – German investment activity in Morocco is gaining momentum across multiple sectors, supported by rising foreign direct investment flows, expanding industrial projects, and growing strategic interest in the country’s southern provinces and logistics infrastructure. Recent data and official statements highlight a strengthening economic partnership between Morocco and Germany, driven by manufacturing, trade, and emerging technology services.

According to figures presented by German officials, foreign direct investment flows from Germany to Morocco reached approximately $2.27 billion in 2024. Nearly 300 German companies are currently established in the country, collectively employing around 35,000 skilled workers. These investments are part of a broader economic relationship that continues to expand, with bilateral trade in goods reaching about $7.99 billion in 2025. Moroccan exports to Germany were valued at roughly $3.78 billion, while imports from Germany reached approximately $4.21 billion, positioning Germany as one of Morocco’s key trading partners in Europe.

Officials from both countries have emphasized that this dynamic reflects structural economic changes in Morocco over the past two decades. Speaking in Berlin during a forum dedicated to small and medium-sized enterprises, the Director General of the Moroccan Agency for Investment and Export Development stated that Morocco has become a stable and reliable industrial destination, particularly in a global environment marked by uncertainty and shifting supply chains. He highlighted reforms aimed at improving competitiveness, including a new Investment Charter designed to simplify administrative procedures and enhance investor support.

Infrastructure development remains a central pillar of Morocco’s investment attractiveness. The Tanger Med port complex continues to serve as a major logistics hub linking Morocco to global markets, while additional port projects such as Nador are expected to further strengthen maritime connectivity. These developments are increasingly seen by international companies as strategic assets for nearshoring production to Europe and expanding access to African markets.

The southern provinces, particularly the Dakhla region, are emerging as a focal point for international investment discussions. German business organizations, including the Federation of German Small and Medium-Sized Enterprises, have identified the region as a promising area for future cooperation. Delegations visiting Dakhla have pointed to improving infrastructure, institutional support, and long-term development potential as key factors supporting investment interest.

Industrial expansion is particularly visible in the automotive sector. The German supplier Leoni is leading several large-scale projects in Morocco. In southern Morocco, the company is planning an industrial investment of around $248 million in Agadir, expected to generate approximately 3,000 direct jobs by 2027. This project represents one of the first major automotive investments in the southern regions and is expected to attract additional suppliers. Leoni is also expanding its industrial footprint in central Morocco through facilities in Bouskoura and Berrechid, with ambitions to reach around 10,000 employees in these areas and a national workforce target of 23,000 across multiple sites by 2027. Additional operations are underway in Kenitra’s Atlantic Free Zone, as well as in Aïn Sebaâ and Bouznika.

Logistics is another expanding area of cooperation. The German logistics group Dachser is planning a major development in Tanger Automotive City, including a facility covering 75,000 square meters and a warehouse of 20,000 square meters, scheduled for completion by the end of 2027. The company is also evaluating future investments in the southern provinces, particularly in connection with the planned Dakhla port, which is expected to strengthen trade routes with West Africa. The development of port infrastructure is also influencing strategic planning in the north, where the future Nador port is viewed as a complementary platform to Tanger Med, particularly during periods of maritime disruption in the Strait of Gibraltar.

The chemical and pharmaceutical sectors also play a role in German investment activity. The Bayer Group maintains a strong presence in Morocco through partnerships and industrial operations. The company recently invested approximately $20.6 million to expand production capacity at its Nouaceur site, which exports to 45 countries across the Europe, Middle East, and Africa region. While interest in Morocco’s chemical sector continues to grow, some investors remain cautious due to high operational costs and global market uncertainty.

Beyond heavy industry, German companies are increasingly active in high-value services and technology. Firms specializing in software and enterprise solutions are expanding their operations in cities such as Casablanca and Khouribga, with plans to scale up employment significantly over the coming years. A new IT training academy planned in Fez is expected to support workforce development and strengthen Morocco’s talent pipeline in digital industries.

Business representatives from Germany have described Morocco as a strategic hub at the intersection of Europe and Africa, benefiting from political stability, geographic proximity to Europe, and improving energy transition policies that increasingly rely on renewable sources. These factors are seen as key advantages in attracting long-term investment and integrating Morocco into European industrial value chains.

The German SME federation, which represents more than 900,000 companies, has also expanded its presence in Morocco through dedicated offices aimed at facilitating bilateral cooperation and supporting business partnerships between the two countries.