Morocco “actively encourages and facilitates” foreign investment

According to a report from the US State Department

Washington – The US State Department published its annual report on the investment climate in the world, in which it highlights the advantages and ambitions of Morocco as a country that «actively encourages and facilitates» foreign investment and seeks to establish itself as a “regional business center” and «front door» to the African continent.

«Morocco actively encourages and facilitates foreign investment, especially in export-oriented sectors such as manufacturing, through positive macroeconomic policies, trade liberalization, investment incentives and structural reforms»US diplomacy states in its report.

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Thanks to its position at the confluence of Europe, sub-Saharan Africa and the Middle East, Morocco “It aims to become a regional commercial and industrial hub by taking advantage of its strategic geographical location, its political stability and its world-class infrastructure”adds the same source. The aim is also to position itself as a regional manufacturing and export base for international companies.

According to American diplomacy, Morocco is “implementing strategies to boost employment, attract foreign investment and increase performance and production”focusing on renewable energy, automotive, aeronautics, textiles, pharmaceuticals, offshoring and agribusiness as key industries.

As part of this reformist dynamic, the report cites the adoption in December 2022 of the new Investment Charter, which “significantly expands incentives for foreign investment.”

As for promising new sectors, the report notes that Morocco “continues to make significant investments in renewable energy, and is on track to achieve its goal” a 52% share of renewable energy in the national energy mix by 2030.

Highlighting green investment opportunities including smart grids, green hydrogen, energy storage, and renewables, the State Department also notes that the New Development Model, which is intended to be a comprehensive economic reform plan, underscores the Kingdom’s ambition to increase the share of renewable energy in total energy consumption from 19.5 percent in 2021 to 40 percent in 2035.

In this regard, the report recalls that Morocco has invested more than 10 billion dollars to build an integrated manufacturing chain for batteries and electric vehicles, and has allocated one million hectares to the production of green hydrogen.

American diplomacy points out, on the other hand, that, thanks to “a series of reforms”Morocco has left the “grey list” of the Financial Action Task Force (FATF) and the European Union in the fight against money laundering and terrorist financing.

By 2024, Morocco will have ratified 72 investment treaties for the promotion and protection of investments and 62 economic agreements, in particular with the United States and most EU countries, aimed at eliminating double taxation of income or profits, the report notes, recalling that Morocco is the only country on the African continent to have concluded a free trade agreement (FTA) with the United States, eliminating customs duties on more than 95% of eligible consumer and industrial goods.

He concluded that since the entry into force of the FTA between the two countries, bilateral trade in goods has almost quintupled, adding that Washington and Rabat “They work closely together to increase trade and investment through high-level consultations, bilateral dialogues and other forums designed to inform U.S. companies about investment opportunities and strengthen business-to-business ties.”

The State Department’s Investment Climate Report, which this year covers 160 countries around the world, analyzes business conditions to help U.S. companies “make informed decisions” about their activities abroad.

“A welcoming investment climate can help attract high-quality, sustainable investments and support sustainable and inclusive economic growth.”the same source points out.