Moroccan Diaspora’s Billions: A Missed Opportunity for Economic Growth

Each year, Moroccans living abroad (MREs) transfer colossal sums to their country of origin, a real lifeline for the national economy. In 2024, these remittances reached the impressive figure of 117.7 billion dirhams, or 7.7% of the kingdom’s gross domestic product. However, behind this financial windfall lies a more complex reality: the money from the diaspora irrigates very little of the productive economy. A large part of this savings never takes the step of investment, and the reasons for this reluctance are now well identified.

This is where the shoe pinches. According to the opinion of the Economic, Social and Environmental Council (CESE) in 2022, only a tiny percentage of these funds, barely 1.3%, is directed towards investment. And when MREs decide to put their hand in their pocket, it is above all for real estate. Indeed, nearly 40.7% of these investments are concentrated in the real estate sector, leaving industry, services or innovation on the sidelines. A situation that stands out when compared to other nations on the continent, where diaspora transfers massively finance the real economy, to the tune of 45% in Nigeria or 35% in Kenya.

The desire, however, is not lacking. More than half of the Moroccan expatriates surveyed by the CESE say they are ready to take the plunge and invest in the country. But not at any price. For them, the path to investment often resembles an obstacle course. They unanimously denounce "the complexity of the procedures", "the lack of incentives and support", or even "corruption and favoritism". These brakes, far from being mere feelings, are recorded in black and white in the results of a consultation conducted at the end of 2022.

The finding is all the more bitter as the support mechanisms struggle to convince. The MDM Invest program, which was supposed to encourage these initiatives, has only validated 48 files in twenty years, between 2002 and 2022. A meager figure that illustrates the shortcomings of the existing aid structures. The banking system is also pointed out, considered too focused on traditional products such as transfers or real estate loans, and missing the specific needs of potential investors in terms of long-term savings or seed capital.

To these obstacles is added an institutional communication deemed deficient and a lack of fiscal clarity. Diaspora project leaders complain of the lack of a one-stop shop that would centralize information and simplify their procedures. They often find themselves alone, navigating between multiple administrative interlocutors, without a clear roadmap. This disorganization is felt even in the territories, where transfers are concentrated in four major regions, while local development projects struggle to attract capital.

Faced with this situation, the CESE is putting several avenues on the table. The institution notably recommends opening the Mohammed VI Fund for Investment to contributions from the diaspora, creating a specific fund for high-impact social and environmental projects, and finally designing adapted and attractive banking products. The stakes are high: to transform this dormant savings into a real lever for development. The message from Moroccans around the world is clear: their willingness to contribute to the country’s development is very real, but it will only be realized through deep structural reforms and guarantees of transparency.