The excellent economic relations between Morocco and France are beginning a new era of collaboration which does not exclude any sector, favoring, all the same, green, digital, innovative technologies and respecting mutually made choices, in particular the model of economic sovereignty advocated by Morocco. Here in a few lines is the analysis made by Abdelghani Youmni, Doctor in economics and specialist in Franco-Moroccan relations, on the state of these relations which have always prevailed beyond economic circumstances.
How would you describe the current state of economic relations between Morocco and France, taking into account the industrial dynamics that Morocco has experienced in recent years?
Morocco and France are linked by a strategic partnership. Economic relations are a reflection of these links. They are robust, they are consolidated by the exceptional success of macroeconomic and financial reforms and the voluntarism of the necessary energy transition of the Kingdom. Paradoxically also by the Morocco-European Union advanced status agreement and by the upheavals induced after Covid-19 that global value chains have experienced.
Between Morocco and France, diplomatic time has always been nourished by economic time, as Bruno le Maire points out: a policy without economy is like an engine without gasoline”, a question of pragmatism.
Now and regarding the economic relations between the two countries, they are excellent and always have been. Trade reached 14 billion euros and according to French customs, Moroccan exports increased by 112% compared to imports between 2012 and 2022. The Moroccan surplus was 0.5 billion euros with a large diversification of Moroccan products including agricultural products, agri-food, the automobile and aeronautics industry, and textiles. This trend is explained by the rise in power of Moroccan industrial ecosystems, the rate of integration of these industries and the re-exports of French companies in the automobile sector to France.
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Let us not forget that Morocco is France’s first partner in Africa, France’s stock of Foreign Direct Investment (FDI) is 8.4 billion euros, it should be propelled thanks to projects in the sectors of civil nuclear energy, solar energy, green hydrogen. For its part, Morocco is the leading African investor in France with an envelope of more than 1.8 billion euros.
If the renewal and development of trade seems to be part of a shared vision of co-industrialization, co-investment, skills mobility and technology transfer, this new era perfectly integrates the Mediterranean, African and Atlantic dimensions. of the Kingdom and its status as an essential partner in the multipolar geoeconomy.
Do you see a renewal of Franco-Moroccan economic relations, and if so, what are the main drivers?
It must be understood that the rise of Moroccan industrial ecosystems, the reorganization of global value chains on the basis of capturing more added value backed by green investment, geographical proximity and environmental, social and governance criteria (ESG), all of this makes Morocco a partner of France, and of any other country, even more exceptional and a country with multiple comparative advantages.
Yes, there is indeed a renewal of Franco-Moroccan economic relations, and several factors are the main drivers: the energy transition and sustainable development, economic diversification and industrialization, the rate of urbanization which doubled in 20 years, technology and digital innovation, education and professional training, in addition to the great royal project of building a social state.
The main drivers of this renewal are the geopolitical and geoeconomic upheavals of the world and the constraints of climate change, reverse demographic transitions on both sides of the Mediterranean and future migratory pressures.
In Europe, the war on Ukrainian soil and the economic weakening of Germany support the idea of strengthening economic relations with the Mediterranean and with Africa. Political time has the capacity to guide economic time towards the construction of a common future to overcome the past.
Finally, bilateral agreements and institutional cooperation play a crucial role in strengthening economic relations. Morocco’s advanced status with the European Union facilitates trade and investment. Regular frank and uninhibited meetings between political and economic leaders from the two countries contribute to the establishment of strategic partnerships.
What are the priority investment sectors for French companies in Morocco, and how have these investment choices evolved recently?
Revisiting the paradigms of Foreign Direct Investment (FDI) is crucial for the future of Morocco and Africa, and vital for France and Europe. A win-win partnership is the only viable path. Today, relocations based on arbitrage of production costs, purchasing power parity, taxation and monetary dumping are obsolete. Furthermore, exports and re-exports without integrating the dimensions of technology transfer and carbon footprint compromise the future of the planet and the demographic balances between continents.
All sectors are eligible for cooperation between France and Morocco, including textiles, agri-food, industrial manufacturing, mobility and logistics industries, digital technology, and civil nuclear power.
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The priority investment sectors for French companies in Morocco have evolved over the years, reflecting the country’s economic and strategic changes. We can cite automobiles (thermal and electric engines), aeronautics, infrastructure and construction (railway and ports).
However, French investments in Morocco are diversifying beyond traditional sectors. There is growing interest in the green technology, digital economy and innovative startup sectors.
Continuity also means consolidating bilateral agreements and economic cooperation between France and Morocco, thus facilitating investment conditions and offering increased legal protections for investors. French companies are adapting their strategies to align their investments with Moroccan national priorities, such as the energy transition and sustainable development.
How does France react to Morocco’s economic sovereignty choices; is it part of this new vision, and if so, how does this manifest itself in terms of joint economic projects?
Sovereignty is at the center of the concerns of His Majesty King Mohammed VI; it is not singular, but plural. It is not focused, but systemic. Let us remember that the health crisis has revealed the fragility of several countries and their dependence on Chinese factories, Indian pharmacies or Russian or Ukrainian farms.
It is not for lack of repeating it, but deindustrialization has caused the loss of 2.2 million jobs, destroyed industrial areas and entire regions and reduced industrial GDP from 23 to 10%, making the country go from one economy with external demand, driven by exports, to a model of domestic demand driven by imports. France perfectly understands Morocco’s feeling of economic sovereignty. It is also its strategy to extricate itself from dependence on emerging Asian countries and to build co-industrialization and co-investment niches within its neighborhood. This is the road to shared prosperity.
It is therefore undeniable that France reacts positively to Morocco’s economic sovereignty choices. For 24 years, the country has demonstrated its ambition to diversify its partnerships and build real win-win cooperation south of the Sahara and with all African countries. France seems more and more to be part, with Morocco, of this new vision which transcends only the cornerstones of the French language and culture.
This cooperation could take the form of so-called triangulation joint economic initiatives and projects, demonstrating a common commitment to strengthening economic ties and promoting a sustainable and mutually beneficial partnership for the economy, culture, mobility of skills and artists. , scientists, goods and services transformed on both sides and productive investments.
Interview originally published in Industry of Morocco No. 83 – June 2024
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