FDIs: The big comeback

Foreign direct investment (FDI) is back on track. After several months of successive declines in 2023, the indicators are in positive territory. According to the Foreign Exchange Office (Office des Changes), net FDI inflows to Morocco stood at over 16.34 billion dirhams (USD 1.63 billion) at the end of September. This represents a 50.7% increase over the first 9 months of the year, compared with the same period last year. As far as FDI revenues are concerned, they amounted to MAD 28.7 billion (USD 2.8 billion). This represents an increase of over 15% compared with the end of September 2023.  Admittedly, this performance needs to be put into perspective, given that 2023 saw sharp declines of over 52% compared with 2022. This could have had serious consequences for the national economy. FDIs are an important source of job creation, technology transfer and export development. A drop in FDIs could slow down the country’s economic growth. But the opposite can revitalize job creation, increase export volumes and boost the attractiveness of new entrants…

Today, the situation has clearly improved. Foreign investors are making a comeback, mainly in renewable energies (RE), green hydrogen, the automotive industry, and aeronautics.

This strong investment appeal (+50.7%) is the result of a combination of factors, including the initial benefits of the Investment Charter, Morocco’s green hydrogen offering, the dynamic automotive and aeronautics industries, and the numerous roadshows organized by AMDIE (Moroccan Agency for Investment and Export Development) and teams from the Department of Investment, Convergence, and Evaluation of Public Policies. In fact, from November 25th to the 29th of this month, a large delegation from AMDIE and its new Minister, Karim Zidane, are on an exploratory mission in Japan.

Green hydrogen: 40 investment projects submitted

 In line with the renewed interest in Morocco as a foreign investment destination, the Green Hydrogen Project Steering Committee has just established a methodology for evaluating and selecting 40 project bids submitted to the Moroccan Agency for Sustainable Energy (Masen). The list of investors includes both Moroccan and foreign project developers wishing to produce green hydrogen and its derivatives both for the Moroccan market and for export.

The framework investment agreements between the Government and investors include clauses on the timing of meetings, to ensure regular assessments of project status and progress made in strict compliance with specifications.

Amin RBOUB