Morocco's pivotal role in African trade and development

Tuesday 18 March 2025 - 11:20

By: Dakir Madiha

Morocco's pivotal role in African trade and development

Morocco is emerging as a key player in African trade and development, showcasing its strength across several strategic sectors, according to the Economic Commission for Africa (ECA).

In its Economic Report on Africa 2025, released during the 57th session of the ECA-UN (March 12-18 in Addis Ababa), the organization highlighted Morocco's significant contributions in critical areas such as fertilizer production, trade openness, and advancements in digital connectivity.

The report points out that Morocco is the largest African producer of phosphates and possesses the world's largest reserves, a position that enhances its role in fertilizer supply and food security across the continent.

On the topic of digital connectivity, the document notes that Morocco boasts an internet penetration rate of 90%, one of the highest in Africa, facilitating the emergence of a competitive digital economy.

Citing Morocco as a model of trade openness, the ECA explains that the country’s proactive trade policies have placed it among the most integrated African economies in international commerce.

The report also emphasizes Morocco's role in African air transport, noting that the country benefits from market liberalization and the Single African Air Transport Market (SAATM), which promotes regional economic integration.

Furthermore, the ECA report indicates that Africa is expected to be the second-fastest growing region in the world by 2025; however, this growth will still fall short of achieving the Sustainable Development Goals (SDGs).

The continent faces challenges related to high public debt and persistent inflation, although the latter is declining in certain areas, the report notes.

Regarding the implementation of the African Continental Free Trade Area (AfCFTA), the ECA stresses the need to accelerate tariff reductions and eliminate non-tariff barriers, highlighting the importance of creating regional value chains in key sectors such as agribusiness, automotive, and pharmaceuticals.

Integrating digital trade and renewable energy into the AfCFTA is essential, with investments estimated at $22.4 billion needed by 2040.

The ECA asserts that Africa requires $120.8 billion in annual infrastructure investments by 2030, particularly in transportation, energy, and digital connectivity, noting that the share of intra-African investments remains low, despite progress in services and manufacturing industries.