Morocco’s major investments are paying off, ISPI report finds

Morocco’s major investments over the past 25 years are paying off, according to a new report by the Italian Institute for International Political Studies (ISPI). 

The country has focused heavily on infrastructure, the automotive industry, and energy transition projects, strengthening its position as an attractive destination for international investors.

While Morocco still faces challenges, the report highlights how its strategic investments have delivered significant results. 

Its location is a key advantage—close to Europe, with an Atlantic coastline that facilitates trade with the Americas, and a vital role as a gateway to Africa. 

Morocco has also benefited from trade agreements with the European Union (since 2000), the United States, and growing partnerships with China and African nations.

Infrastructure development has been at the core of Morocco’s industrial progress. By improving transport networks and integrating into global trade, the country is expanding its economic reach. 

A key example of Morocco’s ambitions is the Tanger Med port, which set new records last year by handling over 10 million containers, an 18.8% increase from 2023. 

Morocco is also extending its high-speed rail network with plans to connect Marrakesh by 2029 and Agadir by 2040. 

Beyond traditional industries, Morocco is emerging as a hub for electric vehicle (EV) production. 

The country has launched projects for fully Moroccan-made EVs and continues to attract substantial investments in automotive components, such as semiconductor chips and batteries.

Morocco is also focusing on renewable energy to enhance its energy security and establish itself as a leader in green energy. 

Since introducing its first national energy strategy in 2009, the country has set ambitious goals, developed strong institutional frameworks, and attracted major foreign investments in wind, solar, and green hydrogen projects.

Despite these achievements, ISPI warns that Morocco still faces structural challenges. The country is navigating the “middle-income trap,” meaning it must compete with both low-wage economies and high-tech industries. 

To sustain its growth, Morocco needs to increase investments in innovation, research, education, and a more inclusive economic model.

The report also points out that Morocco has yet to fully meet its renewable energy transition targets and calls for further regulatory efforts. Another potential challenge comes from U.S. trade policies, particularly if Donald Trump returns to office. 

ISPI notes concerns that Morocco’s growing partnerships with Chinese investors, especially in EV battery production, could be impacted by American protectionist policies.