FDI: a record level of MAD 16.1 billion at the end of May (Mr. Baitas)
rabat – The volume of foreign direct investments (FDI) reached a record of 16.1 billion dirhams (billion dirhams) at the end of last May,an increase of almost 20% compared to the same period a year earlier,indicated ,Thursday in Rabat,the minister Delegate in charge of Relations with Parliament,goverment spokesperson,Mustapha Baitas.
This record increase, considered the second highest level of FDI in the history of the national economy, is mainly attributable to the reforms undertaken by the government in terms of the investment charter and the business climate, namely Mr. Baitas during a press briefing following the Governing Council.
Furthermore, the minister stressed that the growth in the volume of investment was reflected in job creation. To this end, he recalled that the volume of investments approved by the National Investment Commission (CNI) was multiplied by 4.5 and the number of jobs planned by 6.5.
Mr. Baitas also noted that as the entry into force of the new investment charter in March 2023, the CNI has held five sessions which saw the approval of 115 projects totaling 173 billion dirhams and allowing the creation of 96,000 jobs. .
And to specify that 82% of these projects,for which the agreements have been signed,“have actually started and will have a significant impact on FDI,as well as on national private investment”.
How does foreign direct investment impact job creation in Morocco?
Interview: Insights on Morocco’s Record Foreign Direct Investments (FDI)
Editor: Welcome, and thank you for joining us today. We have wiht us an expert in economic progress, Dr. Amina Hariri, to discuss the recent surge in foreign direct investments in Morocco. As reported, FDI has reached a historic level of MAD 16.1 billion by the end of May 2023. Dr. Hariri, what do you think are the primary factors driving this increase?
Dr. Hariri: Thank you for having me.The remarkable rise in FDI—an increase of almost 20% year-on-year—can primarily be attributed to the government’s reforms regarding the investment charter and the overall business climate. These reforms have made Morocco an attractive destination for foreign investors, signaling a stable and supportive surroundings for business operations.
Editor: That’s fascinating. Minister Mustapha Baitas mentioned that the growth in investments has resulted in notable job creation. Could you elaborate on how FDI correlates with employment opportunities in Morocco?
Dr. Hariri: Absolutely. The volume of investments approved by the National Investment Commission (CNI) was multiplied by 4.5, which is remarkable. This increase not only reflects more capital flowing into various sectors but also leads to the creation of about 96,000 jobs. as these investments translate into operational projects, the direct correlation between FDI and employment becomes evident, empowering local communities and stimulating economic growth.
Editor: You indicated that 82% of the approved projects have already commenced. In your opinion,what industries are likely to benefit the most from this influx of foreign investment?
Dr.Hariri: The energy, technology, and infrastructure sectors are especially poised to benefit. These industries have historically attracted significant FDI due to morocco’s strategic location and ongoing commitment to sustainable development. With advancements in the investment charter, we are likely to see an intensified focus on sectors such as renewable energy, which aligns with global trends in sustainability.
editor: With the CNI holding five sessions that approved 115 projects totaling MAD 173 billion, what practical advice would you give to local businesses looking to leverage this investment boom?
Dr. Hariri: Local businesses should focus on partnerships and collaborations with foreign investors. Building networks that can integrate local expertise with foreign capital and technology can create a win-win situation. Additionally, companies should stay abreast of policy changes and actively engage with government initiatives designed to support entrepreneurship and innovation.
Editor: It’s promising to note that these developments seem to be reflective of a well-structured approach by the Moroccan government. How do you foresee the long-term implications of this record FDI on Morocco’s economy?
Dr. Hariri: The long-term implications are very positive.Sustained FDI can lead to enhanced economic stability, infrastructure development, and increased competitiveness on a global scale. It can also bolster local industries, promote innovation, and attract even more foreign investments in the future. If managed correctly, we could see Morocco positioned as a pivotal player in the African and global economies.
Editor: Thank you, Dr. Hariri,for your insightful perspectives on this crucial topic. Morocco’s achievements in attracting record foreign direct investments could indeed set a precedent for future economic policies and practices.
Dr. Hariri: Thank you for the chance. It’s an exciting time for Morocco,and I’m looking forward to seeing how these developments unfold.
editor: And thank you to our readers for joining us in this discussion on Morocco’s economic landscape! Stay tuned for more updates on foreign direct investments and their impact on our economy.