2024-07-17 23:32:12
“Morocco actively encourages and facilitates foreign investment, particularly in export-oriented sectors such as manufacturing, through positive macroeconomic policies, trade liberalization, investment incentives and structural reforms,” the American diplomacy underlines in its report.
Thanks to its position at the confluence of Europe, sub-Saharan Africa and the Middle East, Morocco “seeks to transform itself into a regional commercial and industrial hub by taking advantage of its strategic geographical location, political stability and world-class infrastructure,” adds the same source. It is also about positioning itself as a regional manufacturing and export base for international companies.
According to US diplomacy, Morocco “is implementing strategies to stimulate employment, attract foreign investment and increase performance and production”, focusing on renewable energies, automobiles, aeronautics, textiles, pharmaceuticals, offshoring and agro-industry as key industries.
As part of this reform dynamic, the report cites the adoption in December 2022 of the new Investment Charter which “significantly broadens incentives for foreign investment”.
Referring to the new promising sectors, the document notes that Morocco “continues to make major investments in renewable energies and is on track to achieve its objective” of reaching a share of renewable energies of 52% in the national energy mix by 2030.
Highlighting green investment opportunities that include smart grids, green hydrogen, energy storage and renewable energy, the State Department also notes that the New Development Model, which is intended to be a comprehensive economic reform plan, underlines the Kingdom’s ambition to increase the share of renewable energy in total energy consumption from 19.5% in 2021 to 40% by 2035.
In this sense, the report recalls that Morocco has recorded more than 10 billion dollars of investments to build an integrated chain for the manufacturing of batteries and electric vehicles as well as allocating one million hectares to the production of green hydrogen.
American diplomacy also emphasizes that thanks to “a series of reforms”, Morocco has been removed from the “grey list” of the Financial Action Task Force (FATF) and the European Union in the fight against money laundering and the financing of terrorism.
In 2024, Morocco ratified 72 investment treaties for the promotion and protection of investments and 62 economic agreements, notably with the United States and most EU countries, which aim to eliminate double taxation of income or gains, the report said, recalling that Morocco is the only country on the African continent to have concluded a free trade agreement (FTA) with the United States, eliminating customs duties on more than 95% of eligible consumer and industrial goods.
And he concluded that since the entry into force of the FTA between the two countries, bilateral trade in goods has increased almost fivefold, adding that Washington and Rabat “are working closely to increase trade and investment through high-level consultations, bilateral dialogues and other forums aimed at informing American companies of investment opportunities and strengthening inter-company ties.”
The State Department’s investment climate report, which this year covers 160 countries around the world, analyzes business conditions to help U.S. companies “make informed decisions” about doing business abroad.
“A welcoming investment climate can help attract high-quality, sustainable investment and support sustainable and inclusive economic growth,” the same source emphasizes.
2024-07-17 23:32:12