Morocco faces an African investment gap despite expanding economic ambitions

Wednesday 02 - 14:26

By: Azzat Manal

Morocco faces an African investment gap despite expanding economic ambitions

Morocco has built a strong institutional and industrial foundation to attract investment and expand its economic presence across Africa, but a new international assessment highlights several challenges that could limit the Kingdom's ability to turn its continental ambitions into stronger two-way investment flows.

A report published in June 2026 on the implementation of the African Continental Free Trade Area (AfCFTA) Investment Protocol points to a gap between Morocco's relatively advanced investment framework and the mechanisms needed to deepen its integration into the continent's emerging investment system.

Morocco has introduced a new investment charter and operates regional investment centers alongside the Moroccan Agency for Investment and Export Development. However, according to the assessment, the country had not yet fully formalized the national contact point envisaged under the continental investment framework at the time of the study.

Such a mechanism could play an important role in connecting investors with government institutions and their counterparts in other African countries. Beyond financial incentives and legal guarantees, successful continental investment increasingly depends on access to reliable information, administrative coordination and the ability to resolve cross-border obstacles efficiently.

The report also highlights challenges involving labor mobility and coordination between institutions. These issues can increase the complexity of investment procedures and potentially reduce the attractiveness of Morocco for African investors seeking to establish or expand businesses in the Kingdom.

Another indicator concerns the origin of foreign investment entering Morocco. African investment reportedly accounts for around 3.5% of foreign direct investment inflows into the country, compared with an African average of approximately 10%. The figures suggest that while Morocco has positioned itself as a gateway to African markets, the continent itself has yet to become a major source of investment into Morocco.

This creates a strategic challenge for the Kingdom. Morocco's investment policies increasingly support the international expansion of domestic companies, including their activities in Africa, but attracting greater volumes of African capital could require a more targeted strategy aimed specifically at investors from the continent.

The textile and clothing industry provides a useful example of the opportunities and limitations involved. Morocco has developed a competitive manufacturing base and extensive export experience, while several West African countries possess significant cotton production capacity. Yet the two sides remain insufficiently connected through integrated regional value chains, with Moroccan manufacturers still relying substantially on European supply networks and imported inputs from outside Africa.

Greater cooperation could therefore go beyond exporting finished garments to African markets. Moroccan companies could potentially invest in spinning, textile production and other stages of the value chain while developing stronger links with African suppliers of cotton and raw materials.

Building such cross-border production networks, however, would require more than trade agreements. Effective cooperation would depend on coordinated industrial policies, transparent investment information, appropriate financing and stronger institutional links between countries involved in production, manufacturing and distribution.

For Morocco, the broader challenge is to transform its established economic relationships with African countries into deeper investment partnerships. The country's existing infrastructure and industrial capabilities provide a strong starting point, but greater continental integration will depend on reducing administrative barriers and creating mechanisms that make investment flows more efficient in both directions.

As the AfCFTA develops, Morocco's ability to connect its domestic investment ecosystem with African capital, resources and production networks could become an increasingly important factor in determining its role in the continent's economic transformation.