Morocco is rapidly becoming a cornerstone of China’s ambitious Belt and Road Initiative (BRI), attracting substantial Chinese investment and fostering a burgeoning economic partnership, says the Observer Research Foundation.
Morocco’s political stability and liberal economic policies have positioned it as a key partner for China, with bilateral ties strengthening significantly since King Mohammed VI ascended to the throne in 1999.
Morocco is looking to diversify its economic partners to close gaps in infrastructure, technology, and investment. A key step in this direction was the signing of a cooperation plan with China last year as part of Beijing’s Belt and Road Initiative.
Since then, China’s influence in Morocco has increased in recent years, driven by the Digital Silk Road (DSR), a technology-focused component of Beijing’s Belt and Road Initiative.
The DSR seeks to enhance participating countries’ digital infrastructure, including broadband networks, e-commerce platforms, and smart city technologies. Major Chinese technology companies have been actively involved in these initiatives
China’s investments in Morocco aim to strengthen trade and investment ties and expand its influence in the broader Mediterranean and Sub-Saharan Africa regions.
Morocco’s economic ties with China are deepening, with China being Morocco’s third-largest import source in 2022. On top of that, Chinese companies, particularly in the green energy and technology sectors, are actively exploring investment opportunities in the Moroccan market.
Morocco’s appeal to Chinese investors lies in its developing economy, relatively stable political system, and investor-friendly policies.
The country’s free trade agreements with the EU, France, Italy, and the US, coupled with its participation in the African Continental Free Trade Area, provide foreign companies with access to a vast market.
Major Chinese investments in Morocco have focused on green energy and energy technology. Between 2013 and 2023, Chinese state-owned and private enterprises invested approximately $9.4 billion in key projects in these sectors.
Investments are flowing into Morocco, particularly in manufacturing sectors. This includes facilities for electric vehicle batteries, phosphate poles, tires, and base metal refining.
Tangier Tech City, a key development funded by the China Export-Import Bank, is also emerging as a major industrial hub for these and other manufacturing ventures.
The report attributes the surge in Chinese investments in Morocco partly to deteriorating relations between Europe and North African countries.France, in particular, has traditionally viewed the region as its sphere of influence.
However, China’s rapid, unconditional loans and direct investments have given it a strong foothold in the region.
To counter China’s growing influence, the EU has launched the Global Gateway initiative, and Italy has introduced the Mattei Plan for investments in energy, transport, education, and water in Morocco.
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