The U.S. State Department has warned that Morocco’s growing role as a regional investment hub could be undermined by bureaucracy and corruption, even as the country strengthens its position as a gateway to Africa.
In its 2025 Investment Climate Report, Washington praised Morocco’s stability, strategic location, and modern infrastructure, describing it as one of the most attractive markets in the region. But the report flagged weak administration, slow reforms, and limited oversight in sectors such as telecoms, energy, and strategic minerals as key concerns for investors.
The report noted that Morocco remains the only African country with a free trade agreement with the United States, in force since 2006. Trade between the two countries has since increased eightfold, with U.S. firms using Morocco as a base for exports to Europe, Africa, and the Middle East.
Still, foreign direct investment has been volatile. Figures from UNCTAD cited in the report showed inflows dropped 50% in 2023 to $1.1 billion. Moroccan government data, however, pointed to a rebound in the first nine months of 2024, when inflows rose 50.7% to more than $1.6 billion. France accounted for the largest share of investments at 61.4%, concentrated in industry, real estate, and tourism.
To maintain momentum, Morocco has rolled out major reform programs. The Digital Strategy 2030, launched in September 2024, aims to create 240,000 jobs and train 100,000 young people annually in digital skills. At the same time, the country’s energy plan seeks to raise renewables to 40% of the energy mix by 2035, paving the way for projects in green hydrogen and energy storage.
Large-scale infrastructure projects remain central to Morocco’s appeal. The report cited airport expansions, new highways, high-speed rail, and strategic ports in Nador and Dakhla. The Dakhla Atlantic port is a cornerstone of Morocco’s Atlantic Initiative, designed to provide Sahel countries with access to the ocean and strengthen regional trade.
Despite ongoing challenges, the State Department said Morocco’s long-term strategy, political stability, and investment incentives make it one of the leading destinations in North Africa. With major events such as the 2025 Africa Cup of Nations and the 2030 World Cup approaching, the country is betting on its role as a regional hub.
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