Casablanca – Morocco is emerging as a dominant force in Africa’s automotive industry, with significant implications for the nation’s economic trajectory, according to a recent report by Spanish daily El Economista. The country’s automotive sector has seen rapid growth, which analysts predict will drive substantial GDP expansion in the coming years.

Strategically positioned at the crossroads of Europe and Africa, with a skilled workforce and advantageous free trade agreements, particularly with the European Union and the United States, Morocco has become a key player in global vehicle production. As noted in the El Economista report, Morocco’s vehicle output surged by 15% in 2023, surpassing 500,000 units and outpacing traditional automotive producers like Hungary and Romania. The country is now set to challenge established European markets such as Poland in vehicle production, reinforcing its reputation as a rising automotive hub.

Renault’s factories in Casablanca and Tangier have been pivotal to this transformation. Since opening in 2005 and 2012, respectively, these plants have collectively produced over four million vehicles, a milestone that underscores Morocco’s growing importance in global automotive supply chains. Citroën, another French automotive giant, is also expanding its operations in the country, aiming to produce 100,000 vehicles annually by 2027.

The pandemic has only fueled the growth of Morocco’s automotive sector, as the global shift toward electric vehicles (EVs) and the need for diversified supply chains have created new investment opportunities. Several Chinese manufacturers, including Gotion High-Tech and BTR New Material, are making significant investments in Morocco, with plans to build factories that will produce critical components for the electric vehicle market, such as batteries and cathodes.

In addition to its competitive labor costs and strategic location, Morocco benefits from favorable infrastructure, particularly its ports, which rank among the best in emerging markets. This is expected to enhance the country’s export capacity, positioning it as an essential gateway for automotive products to European, African, and global markets.

The rise of Morocco’s automotive industry is not only seen as an industrial achievement but also as a critical driver of economic growth. El Economista highlights that the sector’s expansion is expected to significantly contribute to Morocco’s GDP growth over the next few years, particularly as the country continues to attract foreign investment. In fact, direct foreign investment (FDI) in Morocco has surged, with new projects increasing fivefold in the past two years.

In line with this growth, Morocco’s renewable energy strategy also plays a crucial role in enhancing its competitiveness. With one of the best solar and wind resources globally, Morocco is investing heavily in clean energy, which will provide long-term cost advantages for energy-intensive industries like automotive manufacturing. By 2050, the country aims to generate 80% of its energy from renewable sources, strengthening its position as a low-cost, sustainable manufacturing hub.

While Morocco’s economic growth has been modest in the past, analysts are now optimistic about its future prospects. Capital Economics projects the country’s GDP growth to accelerate to 5% annually in the next two years, with significant improvements in per capita income over the longer term. As the country continues to develop its automotive sector and other industries, it is set to become one of the fastest-growing economies in the emerging world.

With a young and expanding workforce, improving infrastructure, and a strategic focus on high-value industries, Morocco is well-positioned to capitalize on its automotive sector’s success. As foreign investment continues to flow into the country, Morocco is on track to solidify its role as the “factory of Africa,” an industrial powerhouse poised to lead the continent’s economic transformation.