Transforming Morocco: 25 Years of Strategic Infrastructure Investment

Morocco's strategic focus on infrastructure over the past 25 years has been a cornerstone of its economic transformation and growth, according to a recent feature in the French geopolitical magazine, Revue Conflits.

The article titled "Infrastructure and Economic Development: The Example of Morocco" delves into how Morocco's strategic investments in transportation, energy, and digital connectivity have enhanced its economic competitiveness and attracted significant foreign investment.

A Magnet for Foreign Investment

A critical aspect of Morocco’s economic success has been its ability to create a favorable environment for foreign investors. Between 2007 and 2023, Morocco secured approximately $37.5 billion in net foreign direct investment (FDI), averaging $2.2 billion annually. In 2023, Ernst & Young ranked Morocco third in Africa for the number of FDI projects, with 71 projects amounting to $21 billion.

This influx of foreign capital can be attributed to a series of business-friendly reforms implemented over the past two decades. Key initiatives included the introduction of laws on price freedom and competition in 2000, the establishment of a national business environment committee in 2010, the creation of a common enterprise identifier in 2011, and the launching of an SME observatory in 2013. Additional reforms included public-private partnerships in 2014, oversight of public procurement in 2015, commercial lease regulations in 2016, and a new investment charter in 2022.

Infrastructure Investment: A Pillar of Growth

Morocco’s commitment to infrastructure investment has been extraordinary. While the UN Millennium Development Goals recommended dedicating 9% of GDP to infrastructure, the World Bank estimates that Morocco has allocated an average of 11.2% of GDP over the past two decades. These investments span transportation, water and sanitation, irrigation, ICT, and electricity.

Transportation: The Backbone of Progress

Morocco has made significant strides in upgrading its transportation network. By 2020, 62.7% of national roads were in good condition, a 9.2% improvement from 2012. The 2035 Roads Plan aims to further enhance 7,000 km of national roads, 2,000 km of expressways, and 45,000 km of rural roads.

The rail network has also expanded, with over 2,110 km of tracks, including electric and high-speed lines. The flagship Al Boraq high-speed line, connecting Tangier to Casablanca, transported 5 million passengers in 2023, out of a total of 52.8 million rail passengers. The 2040 Rail Plan aims to connect 43 cities, up from the current 23, serving 87% of the population.

Maritime transport, crucial for Morocco’s foreign trade, has seen remarkable developments. Tanger Med port, operational since 2004, has become a top Mediterranean hub, handling around 8.6 million TEU containers and 122 million tons of traffic, placing it among the global top 20 container ports. In 2023, Morocco’s 27 commercial ports managed 155.2 million tons of goods. The 2030 National Port Strategy plans $7.5 billion in investments to further modernize and expand this infrastructure, supporting both the fishing industry and cruise tourism.

Energy and Digital Connectivity: Powering the Future

In the energy sector, Morocco launched a strategy in 2009 to reduce its dependence on fossil fuels and promote renewable energy sources, targeting 52% of installed capacity from renewables by 2030. Projects like the 582 MW Noor Ouarzazate solar complex and the 1,084 GWh/year Tarfaya wind farm have positioned Morocco as a leader in clean energy. Currently, renewable energy accounts for over 3,700 MW, or 34% of Morocco’s total installed capacity, with access to clean drinking water nearing 90%.

Digital development has also been a priority, making Morocco a leader in ICT according to the International Telecommunication Union. By late 2023, the country had 55.2 million mobile subscribers (149% penetration) and 38.3 million internet subscribers. Major telecom operators have built one of Africa’s most extensive fiber optic networks. The Morocco Digital 2030 strategy includes plans for 5G service and a joint bid for the 2030 World Cup with Spain and Portugal. The data center market is expected to reach $51 million by 2028, with Morocco’s 23 certified Tier facilities ranking it first in Africa.

Diversified Economy: A New Industrial and Technological Hub

This robust infrastructure has allowed Morocco to diversify its economy, emerging as a significant industrial and technological hub in Africa. The automotive industry has seen remarkable growth, with vehicle production nearly quadrupling from 2012 to 2022, reaching 465,000 units. Auto exports represented approximately 8% of GDP in 2022. The aerospace sector has attracted major investments from companies like Boeing, Safran, and Pratt & Whitney.

The pharmaceutical industry, Africa’s second largest after South Africa, achieved revenues of over $2.1 billion in 2023. These industries, combined with Morocco's strengths in mining and textiles, showcase the country’s diversified economic landscape.

Morocco’s strategic infrastructure investments over the past 25 years have been pivotal in its economic transformation. These efforts have not only enhanced the country’s competitiveness but also established it as a major industrial and technological platform in Africa. The sustained focus on modernizing transportation, energy, and digital connectivity has laid a strong foundation for continued growth and resilience in the face of global economic shifts.