Casablanca – Morocco has realized an unprecedented achievement in its investment landscape, with foreign direct investment (FDI) revenues reaching $1.35 billion by the end of April 2024. This record-breaking figure highlights the success of recent government initiatives aimed at enhancing the business climate and attracting foreign investors.
Strategic reforms and governance enhancements
The Ministry of Investment, Convergence, and Evaluation of Public Policies attributes this significant achievement to several key factors, foremost among them the new Investment Charter. The Charter is part of a broader strategy under Framework Law 03.22, which reforms state investment policy to align with major institutional, economic, social, environmental, and technological changes at both national and international levels.
To streamline and decentralize governance, the traditional Investment Committee was replaced by the more powerful National Investment Committee. This body has broader authority and has approved 115 investment projects worth a total of $17.84 billion over five sessions. These projects are expected to create 96,000 jobs, underscoring the impact of the new governance structure on job creation and economic growth.
Government priorities and support systems
Boosting Morocco’s attractiveness for both national and foreign investments and facilitating the investment process are top priorities for the government, in line with the directives of King Mohammed VI. The government has implemented both a basic support system and a special support system tailored for strategic investment projects. These systems provide substantial incentives and support to investors, ensuring a favorable environment for their ventures.
In addition to these support systems, the ministry emphasized that the adoption of the Investment Charter seeks to capitalize on the diverse potentials of all regions and provinces within the kingdom. This decentralized approach ensures that investment benefits are spread evenly across Morocco, promoting balanced regional development.
2023-2026 Business climate roadmap
The 2023-2026 roadmap for improving the business climate, launched in March 2023 during the National Business Climate Conference, outlines a comprehensive strategy to further enhance Morocco’s investment environment. According to the ministry, 70% of the roadmap’s initiatives were launched in 2023, with 44% already completed. The remaining initiatives are scheduled for future implementation.
This roadmap focuses on four key pillars:
1. Enhancing structural conditions for investment and entrepreneurship.
2. Supporting national competitiveness through improved financing, access to real estate, and renewable energies.
3. Fostering a conducive environment for entrepreneurship and innovation.
4. Upholding ethics, integrity, and preventing corruption.
Overcoming global challenges
Despite global challenges, including the COVID-19 pandemic and geopolitical crises, Morocco has shown resilience in its investment sector. In 2022, global FDI levels fell by 12%, and Africa experienced a 44% decline. However, Morocco managed to return to 2019 FDI levels, with 2022 being an exceptional year within the past decade in terms of FDI.
The ministry noted that these global changes initially affected Morocco’s FDI, leading to reductions in planned foreign investments in 2020 and 2021. However, the situation improved significantly at the start of 2024, with FDI revenues soaring to $1.35 billion by the end of April 2024.
Ongoing efforts and future prospects
The Moroccan government remains committed to enhancing the kingdom’s investment attractiveness. Efforts include fully implementing the new Investment Charter, maintaining the activation of investment support systems, and continuing global promotional campaigns to highlight Morocco’s investment opportunities. The government also focuses on developing promising sectors and strengthening the role of regional investment centers to support investors across the kingdom.
With these strategic initiatives and reforms, Morocco is poised to continue its upward trajectory in attracting foreign investments, driving economic growth, and creating job opportunities, thereby solidifying its position as a leading investment destination in Africa and beyond.
