Rabat – Morocco’s Foreign Exchange Office recorded a 34.6% decrease in spending on energy in 2021. Citing the falling prices and lower quantity of imports, the office noted a MAD 26.4 billion ($2.9 billion) decrease in comparison to 2020.
The kingdom imports energy products such as refined petroleum, metallic wires, and non-alloy steel. In 2021, the kingdom noted a 61% decrease in the importation of petroleum oil and lubricants as well as a 39.8% decrease in gas/fuel oil imports.
In order to combat Morocco’s reliance on foreign oil, the kingdom has begun to license more foreign investors that seek to drill in Morocco and off Morocco’s shoreline. In 2019, Morocco equipped Europa Oil & Gas with an eight-year exploration licence for the 11,228-sq-km Inezgane Offshore site near Agadir.
According to the Foreign Exchange Office, the decrease in spending comes as a result of Morocco’s increased self-sufficiency in supplying energy. Morocco achieved a greater self-sufficiency status by increasing domestic production of plastics, electric wires, and conductive metals.
According to OEC, Morocco exported $3.75 billion worth of insulated wire in 2019. Insulated wire was the kingdom’s second-largest export following cars, which Morocco exported for a whopping $3.91 billion.
In addition, the decrease in imports of these materials has led to a decrease in Morocco’s imports of airplanes, conductive materials, and parts of turbojets.
The original source noted a greater decrease in energy expenditure, specifically on refined petroleum imports and insulated wiring, since 2019.
In 2019, the kingdom spent $4.56 billion on refined petroleum imports and $636 million on insulated wiring.
The original Foreign Exchange Office report concluded by stating that Morocco’s imports of goods fell by 14% since 2019, amounting to nearly MAD 422.3 billion ($47.16 billion).
