Morocco’s stable economy is a path to increased investment
European-African relations have evolved over the centuries. Today, they are a strategic partnership, which is important for both sides. In this context, Morocco’s economy, which demonstrates high rates of development, occupies a special place.
The Moroccan market is a promising destination for European partners. According to Statista, Morocco ranked fifth in Africa in terms of GDP in 2024. Additionally, the rating agency S&P Global Ratings upgraded the country’s rating to BB+. This means the state has reached investment grade, making it a reliable destination for foreign capital. Morocco is the third country on the continent to receive such a high rating. Botswana and Mauritius are the top two.
BB+ status sends a powerful message to investors and partners:
1. Morocco is willing to continue to implement reforms that contribute to the growth of the economy.
2. The government is making efforts to reduce the public deficit.
3. Activities to attract foreign capital are yielding positive results.
Morocco serves as a reliable gateway between Africa and Europe. Moroccan authorities are working hard to boost the local economy’s appeal. Their successes are highly appreciated by EU partners.
The country’s prospects for the EU
Due to economic instability and mounting trade tensions with the U.S., Europe’s focus has shifted towards Africa. Furthermore, the EU is facing competition from other regions, which is driving a change in attitudes.
As stated by Ali Seddiqi, the head of the Moroccan Investment and Export Development Agency (AMDIE), sustainable areas are the most promising sectors for partnership. These include developing green energy and sectors that align with ESG principles. For instance, Morocco plans to generate 52% of its electricity from renewable energy facilities by 2030. This will establish the kingdom as the regional leader in this sector.
Moreover, Europe aims to reduce costs and increase competitiveness.
Seddiqi believes that Morocco and Africa as a whole could be the future market for the EU. The country’s main selling point to European companies is stability. Since 2022, Morocco has implemented a strategy to increase private investment. The program aims to increase the share of this type of capital to 60% of total investments by 2035.
Morocco offers a variety of tax incentives and provides strong legal guarantees. These improvements to the business climate have made the country more attractive to local and foreign companies.
