Investment: OECD points to structural obstacles
Morocco is one of the most attractive investment destinations in the Mena region. Significant improvements in the business climate and infrastructure, combined with macroeconomic and political stability, have stimulated investment and growth in high-productivity sectors of global value chains.
This is the message of « The OECD Investment Policy Review: Morocco 2024 «, published on November 04. This second review analyzes Morocco’s domestic and foreign investment climate. With this in mind, the Kingdom has resolutely focused on implementing modernized investment laws and regulations. The adoption of the new Investment Charter, following the implementation of the New Development Model, has breathed new life into Morocco’s investment climate. The sustained pace of business law reform has also contributed significantly to making the country an attractive and secure destination for foreign investment.
Morocco has also undertaken reforms to support the country’s digital transformation and attract investment in the digital economy. These reforms are concrete measures aimed at improving the business environment and investment policy framework. They have also boosted net FDI inflows. This stood at over 16.34 billion Dirhams (USD 1.7 billion) at the end of September 2024. This represents an increase of 50.7% compared with the same period a year earlier, according to the Foreign Echange Office.
However, structural impediments remain to the full implementation of these reforms, notes the OECD team. “Although there is a strong commitment from the highest levels of government, translating this commitment into action within public institutions at national and regional level is less evident,” the OECD team points out. For example, a number of interrelated priorities are at the heart of the Government’s drive to improve the business climate, including the simplification of administrative procedures and processes, the devolution of administrative decisions and investor support, and the digitization of public services. Putting these measures into practice will require considerable capacity-building for public servants at all levels. With this in mind, the successful implementation of Morocco’s advanced regionalization project will be essential to improving operational procedures and attracting investment throughout the country, thus supporting the sustainable development of the regions.
Fatim-Zahra TOHRY
