Morocco’s FDI Surges by 55 Percent in 2024
Marrakech, The Gulf Observer: Foreign direct investment (FDI) in Morocco climbed by an impressive 55 percent in 2024, reaching $1.64 billion compared to $1.05 billion in the previous year, according to the World Investment Report 2025 released by the United Nations Conference on Trade and Development (UNCTAD).
The report highlights investor confidence in Morocco’s economic framework, with total FDI stock rising to $61.5 billion, up from $59.5 billion in 2023. This growth affirms Morocco’s continued appeal as a destination for foreign capital in a competitive regional landscape.
North Africa Emerges as FDI Growth Engine
North Africa played a pivotal role in Africa’s broader investment upswing in 2024. Morocco was joined by Tunisia, which saw a 21% increase in FDI to $936 million, and Egypt, which also recorded significant gains. Across the continent, FDI inflows surged by 75%, reaching a record $97 billion, accounting for 6% of global FDI inflows, compared to 4% in 2023.
Morocco, along with Ghana and Kenya, attracted medium-scale construction projects aimed at addressing infrastructure and urban development demands, while Egypt, Angola, and South Africa secured larger investment undertakings.
Renewable Energy and Strategic Sectors Lead Investment Focus
Among the bright spots was Morocco’s participation in Africa’s renewable energy boom. The kingdom hosted a major green ammonia and industrial fuel production project, part of the $17 billion in renewable energy contracts secured continent-wide. These included green hydrogen projects in Egypt and Tunisia, and solar and wind installations in Namibia.
Outbound Investment Decline Signals Shift in Priorities
While inbound investment showed strength, Morocco’s outward FDI declined sharply, falling to $694 million in 2024 from $1.2 billion in 2023. Analysts suggest this indicates a strategic refocus on domestic economic consolidation amid global uncertainty.
Concerns Over Long-Term FDI Trajectory
Despite 2024’s growth, experts raised concerns about Morocco’s long-term FDI trajectory. Compared to the $3.6 billion in FDI in 2018, current levels reflect a 54% decline over six years. Analysts caution that this points to underlying vulnerabilities in Morocco’s industrial development strategy.
The Exchange Office’s 2024 gross FDI report, which cites $4.34 billion, includes broader financial flows such as equity, reinvestments, and intra-group loans, which may not represent new capital inflows or greenfield projects.
Global and Internal Headwinds Hampering Growth
Morocco’s FDI dynamics are influenced by global disruptions such as the Ukraine conflict, trade tensions, and persistent inflation. Regionally, Morocco faces rising competition, particularly from Egypt, which is aggressively leveraging free trade zones and investor incentives.
Domestically, investors continue to cite administrative delays, procedural complexity, infrastructure gaps, and inter-agency coordination issues as ongoing obstacles to smoother investment processes.
