Home / Finance & Economy / Fitch: Morocco’s construction sector will grow by 3.1% a year by 2028

Fitch: Morocco’s construction sector will grow by 3.1% a year by 2028

This growth remains weak compared to countries in the region where the growth of the sector will reach 8%. This rate is also low compared to what has been achieved in recent years, notes the US agency in a report on the construction sector in Morocco.

Fitch Solutions has just published a report on the growth prospects of the construction sector in Morocco.

“We have a positive outlook for Morocco’s construction sector for the coming years, with growth driven by progress in developing a strong portfolio of renewable energy and transportation projects,” the agency said.

According to Fitch forecasts, the growth of the sector will reach on average 3.1% per year by 2028, “a path of growth modest by regional comparison, lower than that of more efficient markets such as Egypt and Qatar, where we expect average growth of more than 8% over the same period.”

The agency also expects slower growth in construction in Morocco compared to recent years, as work on major projects such as Tangier-Casablanca TGV and Tanger Med 2 Terminal 2 have been completed.

Nevertheless, she believes that the outlook for the sector remains optimistic, with a large portfolio of projects supported by the government, which should offer a steady flow of investment opportunities.

Investment opportunities are spread across different sectors, although the portfolio of power plant projects is the largest in terms of number of projects and value, totaling $ 6.4 billion.

In the transport sector, “projects in ports, roads and railways are numerous, with the government continuing to improve logistics infrastructure to enhance the attractiveness of the country as a destination for investment”, we read on the report.

Projects such as the Meknes-Errachida highway, the port of Nador and Casablanca’s tramway extensions will provide opportunities for European companies such as Alstom and Bouygues, the agency said.

Speed ​​of construction: Morocco ranked 3rd in the Fitch index

The US agency believes that the Moroccan government’s commitment to infrastructure development and creating an attractive environment for investment will have a positive effect on the construction sector.

In the same vein, note that “Morocco ranks third at the regional level for the speed of construction of our infrastructure RRI (Risk/Reward Index), indicating that the process of approval of permits and payment contractors are generally fluid and efficient, making it easier to complete projects on time,” notes Fitch.

In addition, ongoing efforts to improve the operating environment and encourage foreign investment will create new opportunities for infrastructure companies in Morocco, according to the same source.

“We have seen significant improvements in the quality of the country’s logistics supply in recent years, making Morocco the fourth-largest MENA country for the transportation network component of our logistics risk index,” reads the report.

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