The Kingdom of Morocco is strengthening its foothold in Sub-Saharan Africa through diversification of investments and working for solid ties with the region’s most dynamic economies.
Just after Morocco reunion with African Union (AU) on January 30, 2017, H.M. King Mohammed VI went out for a 2-month trip on 5 sub-Saharan countries in Africa, concluding with more than fifty bilateral agreements. In just a few years, the country became the 2nd largest investor in Africa next to South Africa. After growing its presence in francophone West Africa, Morocco, at the present, is looking to East for investments.
According to an article released by OCP Policy Center, it presents that 66 percent of Morocco’s direct foreign investments were given to Sub-Saharan Africa from years 2008 til 2013, increased to 85% today based on information from the African Development Bank. This is because the country aims to lessen its reliance on trade with the European Union due to slow growth.
Although the industry of finance is still Morocco’s first choice of investment, other sectors particularly renewable energies, green infrastructure projects, chemicals, and energy are gaining importance as well. Early in 2017, Office Cherifien des Phosphates (OCP), the leading phosphate exporter made an agreement with Guinea to provide the country with phosphate fertilizers.
Standing as Northern Africa’s most stable country, Morocco ranks third among beneficiaries of the continents foreign direct investments. The kingdom is banking as well on the potential growth of the Sub-Saharan Africa to stimulate its own economy.
Creating a promising condition for Morocco’s large-scale investment programs is the better political relations with the rest of the continent. Morocco, after reuniting with the African Union is now looking for membership of Economic Community of West African states, expanding its footprint in Africa.
Undeniably, Morocco’s investment into Sub-Saharan Africa has been a success. The yearly diplomatic tour made by King Mohammed VI very well reflect the government’s role in encouraging closer ties with Sub-Saharan Africa.
Despite some challenges, Morocco signified its aspiration to address these challenges and start a new chapter in its relationship with Sub-Saharan Africa.
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