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UNCTAD: Morocco in the top 5 African FDI

Morocco ranked 4th in the top 5 African countries attracting the most foreign direct investment (FDI) in 2018, according to the 2019 report of the United Nations Conference on Trade and Development (UNCTAD).

Morocco saw its FDI increase by 35.5%, for a total of 3.6 billion dollars for the year 2018. The first place is occupied by South Africa, which posted an increase of 165.8 % of its FDI, totaling $ 5.3 billion in passing.

The report indicates that the kingdom offers numerous investment opportunities, in different sectors of activity, for companies wishing to develop their presence on the African continent. The UNCTAD indicates that Morocco has a business climate conducive to foreign investors, who can benefit from the country’s economic stability, but also from its strategic location, since it is positioning itself as a hub to Europe and the rest of the African continent.

In addition, Morocco has a human potential, including a workforce that meets international criteria, in the automotive field for example, where the kingdom has managed to position itself as a benchmark on the continent as well as abroad.

Thus, the report indicates that the sectors that most interest the investors, within the kingdom, are the automobile, the energies and the finances. In this sense, it should be noted that one of the most notable transactions of the kingdom is the purchase of the remaining 53% of Saham Assurance by the South African company, Sanlam, for a total of one billion dollars.

In addition, it appears that the Dominican Republic’s National Free Zones Council is seeking to expand the list of countries with which the country freely trades its products, in order to include Morocco for the African continent, in addition to European countries, in particular Spain, Germany and Finland.

That said, aware of the potential they represent, Morocco is starting a transition in terms of its activities, particularly by opening up to new technologies, instead of remaining attached to the industry as before.

The report also notes that several West Asian and North African countries are highly dependent on oil and gas exports, noting that special economic zones account for almost 60 percent of non-oil exports from Morocco.

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