Morocco maintains a strong investment position in Africa despite rising risks

Wednesday 30 September 2026 - 21:30

By: Azzat Manal

Morocco maintains a strong investment position in Africa despite rising risks

Morocco maintains a strong investment position in Africa despite a relative decline in returns and a rise in perceived risks, according to the 2026 Africa Risk-Reward Index published by Control Risks and Oxford Economics Africa.

The 11th edition of the index gives Morocco a return score of 5.14 out of 10 and a risk score of 4.21. Based on the index methodology, this translates into a return-to-risk ratio of around 1.22, the highest among the 24 African markets covered by the report.

The figure does not mean Morocco offers the continent’s highest absolute investment returns. Rather, it reflects the country’s combination of relatively attractive opportunities and comparatively contained risks under the methodology used by the index. Tanzania and Uganda follow with higher return scores but also higher risk levels.

Morocco’s assessment has weakened slightly compared with 2025. Its return score fell from 5.31 to 5.14, while its risk score increased from 3.88 to 4.21. The combined change resulted in a 0.50-point deterioration in the country’s overall position under the index methodology.

The report nevertheless highlights Morocco’s relatively diversified economy, logistics infrastructure and broad trade and financing links as factors that can help cushion the impact of external shocks. The 2026 edition places particular emphasis on what it calls “resilience returns” — the ability of economies to maintain productive activity, supply chains and access to financing during periods of disruption.

This resilience has become increasingly important following a series of global shocks, including the Covid-19 pandemic, the war in Ukraine and instability in the Middle East. Morocco’s economy grew by around 4.9% in 2025, while inflation stood at 0.8% and the budget deficit declined to about 3.5% of GDP.

The report also points to the phosphate and fertilizer industry as an example of how external supply shocks can affect African economies. Morocco’s OCP Group has faced pressure from disruptions and higher prices in global sulfur markets, prompting efforts to secure inventories, diversify suppliers and expand production of fertilizers requiring less sulfur, including triple superphosphate.

Morocco is also identified alongside South Africa, Egypt, Kenya and Nigeria as one of the African markets with potential to attract investment in data centers and artificial intelligence infrastructure. Turning announced projects into operational capacity, however, will depend on reliable electricity supplies, grid connectivity and the development of digital infrastructure.

Demand for data-center capacity in Africa could rise from around 0.4 gigawatts today to between 1.5 and 2.2 gigawatts by 2030, according to estimates cited in the report’s discussion of the sector. Meeting that demand could require billions of dollars in additional energy and digital infrastructure investment.

The index assesses investment returns through factors including medium-term economic growth prospects, economic size and demographic trends. Its risk component incorporates political and economic considerations such as political stability, credit conditions, trade, exchange rates, the business environment and security.

The authors stress that the index is not intended to provide a definitive ranking of investment destinations. Instead, it is designed to help investors assess economic opportunities alongside the risks associated with accessing them.