Morocco’s Investment Rate Soars to 30% of GDP, Outpacing Global Average

– byGinette · 2 min read
Morocco's Investment Rate Soars to 30% of GDP, Outpacing Global Average

The investment rate in Morocco is one of the highest in the world. It represents 30% of the gross domestic product (GDP) while the world average is 20%, according to the explanations provided by the delegate minister in charge of Investment, Mohcine Jazouli.

The minister was thus responding to a topical question put to him in the House of Representatives on "the promotion of investments in Morocco". He explained that the investment rate has contributed to a qualitative leap in terms of infrastructure, particularly motorway networks, the high-speed train (TGV) or the Tanger-Med port.

All these transformations have made it possible to attract even more foreign direct investment (FDI) and have contributed to boosting industrial creation in the aeronautics and automotive sectors.

However, according to the minister, the private sector only provides one third of the total of these investments, hence the need to put in place a new strategy capable of reversing the current distribution between public investment and private investment and to stimulate private investment in order to reach, by 2035, on average two-thirds of total investment, as recommended in the new development model (NMD).

During his intervention, the minister pointed out that Morocco has achieved, over the past 20 years, several feats in terms of improving the business climate. "They have helped make Morocco a globally recognized investment destination". But there are still so many challenges to be met, particularly with regard to real estate, administrative procedures, energy costs, human capital, financing, infrastructure, logistics, transport or public procurement.