World Bank: Morocco’s private investment not yet sufficient to drive jobs and growth

Morocco has made strong economic progress over the past 20 years, but private investment is still too low to fuel the level of job creation and growth the country needs, the World Bank said in a new report.

Morocco’s gains have been driven by stable economic policies, political continuity and major reforms. Now, the country is entering a new phase, aiming to put private businesses at the center of growth, with a focus on jobs, skills, regional balance and green energy.

But despite high overall investment, much of it still comes from the public sector. Private investment makes up only about one-third of total investment, which is far from the government’s goal of reaching two-thirds by 2035. 

The report says that Morocco has poured significant public money into infrastructure, renewable energy and logistics. Still, that hasn’t been matched by enough private-sector activity. 

As a result, economic growth has not translated into enough jobs, and many sectors remain informal or low-productivity.

Foreign direct investment also lags behind comparable countries, showing that Morocco is not yet attracting the level of outside capital seen in some regional peers.

The World Bank says the issue isn’t a lack of potential but the barriers facing investors. Businesses report problems such as complex administrative procedures, unclear regulations, corruption concerns and difficulty accessing land, financing and skilled workers.

The report points out four sectors where reforms could quickly unlock private investment: solar energy, textiles, natural cosmetics based on argan oil, and marine aquaculture.

In solar energy, Morocco has strong natural advantages, but unclear rules and slow approvals are holding projects back. 

In textiles, the country could benefit from growing demand for sustainable fashion, but struggles with waste management systems and certification costs.

The argan oil industry could expand into higher-value cosmetics, but needs better traceability and simpler export procedures. Aquaculture has huge potential thanks to Morocco’s coastline, but investors face long delays and unclear land-use rules.

If reforms are implemented, the World Bank estimates these sectors alone could attract up to $7.4 billion in private investment and create more than 100,000 jobs over the next decade.