Morocco emerges as key nearshoring hub for German digital and engineering services

Morocco is gaining attention as a prime nearshoring destination for Germany, particularly for digital and engineering services, according to a recent report by Germany Trade and Invest (GTAI).

The report highlights that German companies, facing skills shortages and seeking to diversify service supply chains, are increasingly looking to Morocco. The country, which is a leader in Africa’s energy transition, offers favorable conditions for technology firms in renewable energy and smart grid management.

“The expansion of offshoring could reshape German-Moroccan trade, with cross-border trade in digital services expected to grow,” the report said, noting that goods such as textiles, agricultural products, machinery and vehicles currently dominate trade.

Importing IT and engineering services allows German companies to outsource standard processes cost-effectively while focusing internal resources on innovation, the report explained. For Morocco, exporting these services provides an important source of revenue and helps reduce the structural trade deficit.

The report added that “if the kingdom achieves its ambitious goals for human capital development and European data protection compliance, it could become not just a traditional production hub but also an integral part of digital value chains for German businesses in the coming years.”

Morocco offers extensive financial and tax incentives for operations that generate high value and local employment, and the report said current conditions present a favorable window for strategic German investment.

This growing interest coincides with Moroccan government plans, revealed in January, to double industry revenues to nearly 40 billion Moroccan dirhams by 2030 and create an additional 270,000 jobs. The sector already employs around 150,000 full-time staff, with service exports reaching approximately 27 billion dirhams in 2025.