Morocco has been able to boost its attractiveness as a destination for investment thanks to bold reforms that have improved the business environment in the Kingdom, Rand Merchant Bank (RMB), one of the world’s leading banks of investments in South Africa.
Morocco has implemented reforms to improve the business environment, including simplifying administrative procedures for business registration, improving e-filing and facilitating exports, said Celeste Fauconnier, an analyst at the international level of RMB, which contributed to the preparation of the institution’s latest report on investment in Africa.
In this report, Morocco ranked second best destination for investment in Africa, behind Egypt. Morocco thus outperforms South Africa, third, Kenya (4th) and Rwanda (5th).
“Morocco has also been successful in improving trade with other countries, and customs services are working more efficiently now,” said Celeste in an interview, noting that “these changes have allowed Morocco to overtake South Africa.”
The analyst also stressed that Morocco was able to protect its economy from the impact of the uprisings that shook some countries in the Middle East and North Africa region in the context of the “spring Arab”.
She explained that in drafting its report, the RBM has adopted indicators of major world rankings, including those of the World Economic Forum and Global Competitiveness Report and the World Bank Doing Business Report.
The report “Where to invest in Africa” notes that Morocco will have to achieve an economic growth rate of 4 pc in the medium term, noting that the return of Morocco to the African Union has contributed to strengthening the attractiveness of the Kingdom to investors’ eyes.
“Morocco offers the most diversified investment opportunities in Africa in recent years,” says Celeste.
The RBM report aims to identify African markets that offer the best investment opportunities. Some countries such as Guinea, Mozambique and Djibouti have made inroads compared to other nations such as South Africa, Ethiopia and Tanzania, which have fallen in the rankings, reads the report. South Africa ranked first in the first report published in 2011 until 2016, before falling back to second place in 2017. This decline is mainly due to slower economic growth and uncertainty the country because of some governance problems.