US State Department: Morocco Actively Encourages and Facilitates Foreign Investment

Marrakech – The US State Department highlighted that Morocco actively encourages and facilitates foreign investment, particularly in key export sectors like manufacturing, within their “2024 Investment Climate Statements,” published yesterday.

The report emphasizes Morocco’s efforts to position itself as a regional business and industrial hub by leveraging its strategic location at the crossroads of Europe, Sub-Saharan Africa, and the Middle East, as well as its political stability and robust infrastructure.

According to the State Department, Morocco’s government “implements strategies aimed at boosting employment, attracting foreign investment, and raising performance and output” in key industries, including renewables, automotive, aeronautics, textiles, pharmaceuticals, outsourcing, and agro-industry.

The report also underscores the significance of Morocco’s new Investment Charter, adopted in December 2022, which “significantly expands incentives for foreign investment.”

The US State Department also highlights Morocco’s commitment to renewable energy, stating that the country “continues to make major investments in renewable energy and is on track to meet its stated goal of 52 percent total installed capacity by 2030.”

The New Development Model outlines Morocco’s ambition to increase the share of renewable energy in total energy consumption from 19.5% in 2021 to 40% by 2035.

The report identifies opportunities for green investment in areas such as smart grids, green hydrogen, energy storage, and renewable energy, noting that in 2023, Morocco recorded over $10 billion in announced investments aimed at developing an integrated battery manufacturing and electric vehicle production chain.

The report also acknowledges Morocco’s efforts to strengthen its financial system, stating that in February 2023, the country was removed from the Financial Action Task Force’s (FATF) “grey list” following a series of reforms to bolster its anti-money laundering and counter-terrorist financing legislation, regulations, and criminal penalties.

As of 2024, Morocco has ratified 72 investment treaties for the promotion and protection of investments and 62 economic agreements, including those with the United States and most EU nations, which aim to eliminate the double taxation of income or gains.

The US State Department notes that since the implementation of the US-Morocco Free Trade Agreement, bilateral trade in goods has grown nearly five-fold.

The report emphasizes that “the U.S. and Moroccan governments work closely to increase trade and investment through high-level consultations, bilateral dialogue, and other fora to inform U.S. businesses of investment opportunities and strengthen business-to-business ties.”

The Investment Climate Statements, prepared by economic officers stationed in posts around the world, provide up-to-date information on the investment climates of more than 165 countries and economies, assisting US companies in making informed business decisions when considering current or potential markets for their businesses.