Morocco Emerges as Maghreb’s Economic Leader as Algeria Faces Investment Exodus

At a time when foreign investors (the German Volkswagen and the South Korean Hyundai...) are leaving Algeria, Morocco is pursuing a policy of attractiveness and it is working rather well for them. In addition, the kingdom has developed infrastructure (roads, highways, ports...) to attract these investors. Meanwhile, the industry of assembly of new vehicles is losing ground in Algeria. Morocco is taking advantage of this situation to establish itself as the regional hub in the Maghreb and North Africa in terms of the automotive industry, comments Algérie Part. As an example, the German brand OPEL is preparing to produce in Morocco in the Kenitra plant, Opel Rocks·e, a new 100% electric vehicle model.

With Chinese investors, three new electric car factories will be set up in the kingdom. Chinese automaker Build your Dream (BYD) announced the upcoming establishment of an electric car factory near Tangier after the holding of the China-Africa Forum in Marrakech in 2017. In this sense, a memorandum of understanding was signed on December 9, 2017 in the presence of King Mohammed VI, for the construction of three other factories - electric batteries, electric buses and trucks and finally electric trains - near Tangier, in the future Mohammed VI-Tangier Tech City.

Morocco also attracts French investors. The Renault and PSA groups have also launched projects in the kingdom, in 2008 and 2015 respectively. The development of the automotive industry is allowing the country to strengthen its economy. The sector generates 6.5 billion euros in revenue. These results have allowed Morocco to rank in the top 5 exporters of cars to the European Union (283,614 vehicles, 7.8% of EU imports), behind Turkey, Japan, South Korea and China, and to aim to dethrone the Middle Kingdom.