EU to Invest $1.8 Billion in Morocco’s Green Energy Sector

Rabat – The European Union is set to invest €1.6 billion ($1.8 billion, MAD 17 billion) in Morocco’s green energy sector, according to European Commission President Ursula von der Leyen. During her visit to Morocco this week, Von der Leyen announced the planned investment on Twitter.

She described the massive EU investment as a “great opportunity for the green and digital transition,” as part of Europe’s “Global Gateway” program. The EU’s Global Gateway investment scheme attempts to compete with China’s Belt and Road program by offering financing for investments outside the EU. 

Von der Leyen described the investment scheme as “a template for how Europe can build more resilient connections with the world,” as the program offers up to €300 billion in investments.

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The EU announcement comes roughly a month after Morocco signed a landmark agreement with China, joining the Chinese Belt and Road initiative. This agreement “was not born yesterday,” highlighted Foreign Minister Nasser Bourita, adding “it is supported by long-standing diplomatic relations.”

European and North-American countries are increasingly seeing China as a threat, after the nation transitioned from developing country to world power. While China serves as an economic example followed by many other developing nations, its rise in prominence is resulting in an increasingly hostile stance in the West.

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The evolving rivalry between Europe and China appears to be a net positive for Morocco at the moment. 

As wealthy superpowers compete over who gets to invest in Morocco’s renowned green energy sector and burgeoning trade, smart deal-making and continuous diplomatic advancements by Morocco’s government has made the country an obvious location for foreign investment.

During the visit of European Commission President Ursula von der Leyen to Morocco, she described the North African kingdom as “the EU’s leading economic partner in Africa,” and called on the EU and Morocco to “go further, with our Green Partnership for sustainable development.”