2023-10-21 09:24:27
Morocco is increasingly establishing itself as a destination of choice for foreign investment, attracting billions of dollars in new projects in electric vehicles and renewable energy. This exceptional performance demonstrates the country’s efforts to diversify its economy and create a favorable business environment.
Thanks to the rise of the electric vehicle and renewable energy industry, Morocco is recording an exceptional performance in foreign direct investment (FDI) projects in 2023, ranking first among countries setting new records. Nuance: do not confuse planned FDI and actual FDI. The difference lies in the stage at which the investments are made. As explained by Marouane Hatim, economist and Doctor of Economic Sciences, contacted by Challenge, “the planned FDI represents the investment intentions declared by foreign companies, while the actual FDI represents the investments which have actually been made. The distinction is important, because not all planned FDI necessarily materializes into actual FDI, and there may be a gap between initial announcements and investments actually made.”
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According to fDi Intelligence, the Kingdom attracted nearly $34 billion in new FDI projects during the first eight months of the year, doubling the previous all-time record of $15.8 billion set in 2008. Note that fDi Intelligence is a publication specializing in foreign direct investment (FDI), part of the portfolio of investment products and services of the Financial Times, a renowned and respected newspaper in the field of business and economics. According to the publication, moreover, shared by the Ministry of Investment, Convergence and Evaluation of Public Policies, and several AMDIE officials, Morocco ranks first ahead of Malaysia, Iraq, Israel, DRC Congo and Finland. This remarkable performance is mainly due to the influx of investments entering the electric vehicle (EV) supply chain and the renewable energy sector.
The key role of the electric vehicle industry
The electric vehicle industry has played a key role in the investment boom in Morocco. The country has attracted a large number of Chinese companies operating in the EV supply chain. Among these, Chinese battery manufacturer Gotion High-Tech signed an agreement with the Moroccan government to establish its first gigafactory in Africa. Chinese mining giant Huayou Cobalt also plans to invest 200 billion dirhams ($19.5 billion) in an EV battery component factory. So many investments demonstrate the confidence of Chinese companies in Morocco’s potential as an EV production hub.
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At the same time, Morocco has also managed to attract significant FDI projects in renewable energies. As the transition to clean energy sources gains importance globally, the Kingdom has leveraged its natural resources, favorable climate and investment-friendly environment to attract energy projects. renewable energy. Investments that contribute to both the diversification of the Moroccan economy and the reduction of its dependence on fossil fuels.
Beyond electric vehicles and renewable energies
Besides electric vehicles and renewable energy, Morocco is also attracting major FDI projects in other key sectors. The chemical sector, for example, has benefited from the establishment of international companies seeking to exploit the opportunities offered by the Moroccan market. Additionally, the tourism sector has continued to attract investment, strengthening Morocco’s position as a popular tourist destination. This exceptional performance of Morocco in terms of FDI in 2023 demonstrates the country’s sustained efforts to attract foreign investment and diversify its economy. Investor-friendly policies, structural reforms and incentives have helped create a business-friendly environment and strengthen international investor confidence.
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However, it is important to emphasize that Morocco’s success in FDI should not obscure the challenges the country faces. Despite the progress made, there remain areas such as improving the business climate, reducing inequality and promoting innovation that require continued attention. It is by continuing these reforms and investing in human capital that Morocco will be able to consolidate its position as an attractive destination for foreign investment and stimulate sustainable economic growth.
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