Economy

Economic Overview

Morocco has capitalized on its proximity to Europe and relatively low labor costs to work towards building a diverse, open, market-oriented economy.

Key sectors of the economy include agriculture, tourism, aerospace, automotive, phosphates, textiles, apparel, and subcomponents.

Morocco has increased investment in its port, transportation, and industrial infrastructure to position itself as a center and broker for business throughout Africa. Industrial development strategies and infrastructure improvements – most visibly illustrated by a new port and free trade zone near Tangier – are improving Morocco’s competitiveness.

Morocco also seeks to expand its renewable energy capacity with a goal of making renewable more than 50% of installed electricity generation capacity by 2030.

Main Economic Data 

 

 

2015

2016

2017

2018

2019

Population (million)

34.1

34.5

34.9

35.2

35.6

GDP (USD billion)

102

104

110

117

120

GDP per capita (USD)

2,975

3,003

3,159

3,318

3,364

Economic Growth (GDP, annual variation in %)

4.5

1.1

4.2

3.1

2.5

Unemployment Rate (%)

9.6

9.9

10.2

9.7

9.3

Inflation Rate (CPI, annual variation in %)

1.6

1.6

0.8

2.0

0.2

Trade Balance (USD billion)

-14.7

-17.6

-18.0

-20.3

-20.0

Exports (USD billion)

18.6

19.1

21.5

24.6

24.7

Imports (USD billion)

33.3

36.7

39.5

44.9

44.7

Agriculture

Moroccan agriculture has made a great progress in terms of modernization and diversification. Yesterday as today, the agricultural activity represents one of the pillars of the Moroccan economy. The agricultural sector is thus one of the main sectors of activity at national level.

Morocco has also improved its self-sufficiency in certain foodstuffs, in a context marked by a growing integration of the international market.

Main Agricultural products

wheat, sugar beet, milk, potatoes, olives, tangerines/mandarins, tomatoes, oranges, barley, onions

For more details, click on the links below 

http://www.agriculture.gov.ma/en/pages/strategy

https://www.ada.gov.ma/en

Industries

Automotive, phosphates, rock mining and processing, aerospace, food processing, leather goods, textiles, construction, energy, tourism.

For more information, consult the following link

http://www.mcinet.gov.ma/en

Tourism

Number of visitors:

13 millions in 2019

Ranking :

35th worldwide and 2nd in Africa

Annual foreign Revenues :

81,4 billion MAD (8,89 billion $) in 2019

Domestic tourism consumption

138.3 billion MAD (15.1 billion $) in 2019

Employment :

5% of the entire employment of the economy

Part of the GDP :

7,1%

For more information, consult the following links:

https://www.visitmorocco.com/en

– Moroccan National Tourist Office

– Ministry of Tourism, Air Transport, Handicraft and Social Economy

Renewable Energies

The development of renewable energies is at the heart of the national energy policy which calls for a diversification of energy sources by 2030 with 52% of the total electric power installed provided by green energies.

Energy efficiency along with the development of renewable energy is a priority of the national energy strategy: the aim is to save 15% of energy consumption by 2030. With this in mind, action plans for energy efficiency were implemented in all key sectors, particularly transport, industry and construction.

Given the huge potential for renewable energy (solar and wind) available to Morocco, the building of a diversified energy mix benefiting renewable energy has been planned in order to satisfy growing electricity demand, preserve the environment, and reduce dependence on energy from other countries.

To meet these challenges Morocco has launched a very large scale integrated programme for producing electricity from renewable energy sources. This is one of the largest projects in the world, thanks to the construction of new wind farms and the construction of five solar power plants.

For more details, click on the link below :

https://www.masen.ma/en

Morocco's Presence in Africa

Morocco has placed its home continent (Africa) at the top of its development priorities.

Under the guidance of His Majesty the King, Morocco adopts a strategic diplomatic approach with the main objective to develop partnership models with various African countries based on the concepts of co-development, South-South solidarity, and a strong social and human dimension.

Why Africa?

  •  Africa should no longer be seen as the continent of poverty, underdevelopment and conflicts, rather it is considered to be a continent of opportunities due to its investment and trade potentials;
  • Time to break down the stereotypes according to which the African market would be riskier than the others, and to strengthen the potential for inter-continental and intra-continental cooperation;
  •  Africa is expected to keep an annual average growth above 4.3%;
  •   The emergence of a middle class expected to spend about 2 trillion USD in 2025;
  •  Africa has hug natural and agriculture resources: 60% of the world’s uncultivated arable land and 30% of the global reserve of minerals, 10% of the world’s natural gas;
  •  Annual growth of investments has reached 11% and manufacturing industries to attain 930 billion USD;
  • The impressive growth rate and the growing demand in Africa have made it a competition field between the numerous powers seeking to gain a foothold in this continent.
  • Massive presence of important new partners such as China (trade turn-over 220 billion USD and 100 billion USD of investment), India (trade turn-over 62 billion USD and 20 billion USD of investment), japan (trade turn-over 24 billion USD and 20 billion USD of investment);

Moroccan economy’s presence in Africa:

Thanks to this Royal Vision, Morocco is today the 1st investor in West Africa and the 2nd investor at the continental level.

Morocco enjoys a substantial multiform presence in Africa in vital sectors such as banking, insurance, energy, telecommunications, etc:

  • Moroccan banks – Attijariwafa bank (AWB), Banque Centrale Populaire (BCP) and BMCE Bank of Africa (BBoA) – are now present in 25 African countries mainly Senegal, Ivory Coast, Mali and Togo;
  • Maroc Telecom” a global telecommunications operator in Morocco, has grown internationally and is now present in eleven countries in Africa;
  •  The Moroccan OCP group (Office Chérifien des Phosphates), 95% owned by the State, is one of the main exporters of crude phosphate, phosphoric acid and phosphate fertilizers in the world. The OCP group has set up OCP Africa which has created 12 subsidiaries in the African continent, notably in Ethiopia, Nigeria, Ivory Coast, Burkina Faso, Senegal, Cameroon, Benin, Kenya, Tanzania, Rwanda, Ghana and in Zambia;
  •  Royal Air Maroc (RAM), established in 1957, is one of the few heavyweight African companies in the airline sector with Ethiopian Airlines. RAM has a fleet of around 60 aircraft that currently serve more than 32 destinations on the African continent.

Also, Morocco undertakes various partnerships and capacity development actions in priority areas such as water, sanitation, customs, airports management, etc.

Morocco focuses on positioning its self as both a hub and foothold for international companies with an interest in expanding across the African continent.

Casablanca Financial City has become a financial hub for the French-speaking African market. Many of the major multinational manufacturers that have set up production units in Morocco have extended their activities to the African markets. 

Morocco and Vietnam can work together in Africa, including trough joint-ventures projects, trilateral technical and economic cooperation, just like the current initiatives carried out by Morocco with other Asian countries such as Japan, China and South Korea.