Rabat – Foreign direct investment (FDI) in Morocco dropped significantly in the first quarter of 2021, according to the latest report by the United Nations Conference of Trade and Development.
The decline is part of a negative global trend amid the COVID crisis, the report says, showing how the net flow of foreign investments took a negative trajectory in most countries in the first quarter of 2021 as a result of the COVID-19 economic crisis.
The flows of investment to Morocco remained largely unchanged between 2019 and 2020, resisting negative global trends in 2020 according to previous editions of the same report.
The report, dubbed “World Investment Report,” explains that the North African country holds a diversified FDI portfolio, with the “established” presence of multinational corporations (MNEs) in sectors such as manufacturing and mining.
Regarding the outflow of investment, Morocco’s foreign investments abroad, 2020 marked a decrease of 45% in Moroccan investment outflow.
However, the same report details that overall investment outflow remained significant in 2020 with MAD 4.462 billion ($492 million).
Recently, the US State Department commended Morocco for encouraging and facilitating foreign investment. In an annual investment climate statement, the State Department ranked the North African country as the eighth-largest holder of foreign direct investments in Africa in 2020.
A strategic geographical location, a thriving industrial sector, as well as ambitious infrastructure plans are all contributing to the emergence of Morocco as a regional manufacturing and exporting hub, the report notes.
As of November 2021, Morocco has ratified 72 investment treaties and 62 economic agreements with various international partners, with the overriding aim of boosting the North African country’s profile as a go-to investment destination.
