The general director of the Mohammed VI Fund for Investment, Mohamed Benchaâboun, explained the keys to the Moroccan formula and the reasons for investing in the Kingdom. Explaining the mixed investment model in Morocco, supported by the State, the CEO of the Sovereign Fund recalled that this mechanism intervenes to encourage private investment in a country “land of opportunities”.
Today, Morocco has undoubtedly become a country full of investment opportunities. This was possible thanks to “more than two decades, ambitious reforms have made it possible to modernize infrastructure, simplify administrative processes and open new sectors to investors” as was the case with the automobile industry, aeronautics and renewable energies, indicated the CEO of the Mohammed VI Fund for Investment in a speech at a Paris Infraweek conference.
“Our political stability and our open economy through several strategic free trade agreements make us a strategic crossroads between Europe, Africa and the Middle East,” he declared as part of a conference on the theme of new models of partnerships between Morocco and France in terms of infrastructure.
The recent state visit of French President Emmanuel Macron to Morocco was an opportunity to sign around forty agreements which “testify to our common desire to strengthen economic, cultural and strategic exchanges between our two nations.”
A desire supported by “the opening of a new book and a bold new phase of cooperation” between France and Morocco following the signing of the Declaration on the Exceptional Strengthened Partnership between King Mohammed VI and President Emmanuel Macron.
Morocco is indeed a country of choice for French investments, and this new exceptional framework established by King Mohammed VI and President Emmanuel Macron should further strengthen the development of economic cooperation and investment.
Since the accession to the Throne of King Mohammed VI 25 years ago, Morocco has experienced dazzling development at all levels. In 1999, less than 50% of Morocco had access to electricity, while today the country is ranked No. 1 for the quality of infrastructure in Africa and manufactures power modules for TESLA.
Morocco has the best internet connectivity in North Africa, the 1st port in Africa, namely Tanger Med with a capacity of 9M containers, and is the only country on the continent to have an LGV of 200 Km with an investment of 10 MM€ since 2000 in the Moroccan railway network.
A new public-private investment strategy
Regarding economic data on Morocco, Mohamed Benchaâboun recalled that the Kingdom has built its development around a mixed investment model, where the State plays a pivotal role, both as a regulator and as an investor.
In 2023, public investments represented 21% of national GDP, he said. Only, to meet the major challenges facing the country, he said, “it is imperative to change the paradigm and reserve a central and much more important place for the private sector”.
It is in this sense that the new Investment Charter and the Sovereign Fund come into play, which aims to increase the capacity of the national economy and to support and finance major strategic projects within the framework of public-private partnerships.
With the New Development Model (NMD) driven by King Mohammed VI in 2021, which aims to rethink the country’s development strategy in order to be more sustainable and inclusive, Morocco is opening up to new large-scale projects.
This includes strengthening regional connectivity by enabling the expansion of road, rail and port networks, establishing sustainable water management and developing new ENR capacities or even the digitalization of public services by 2035. .
The Investment Charter put in place in 2021 to boost private investment will make it possible to further strengthen public-private partnerships (PPP). Between 2011 and 2021, Morocco stood out for its dynamism in terms of PPP with nearly €12 billion in cumulative transactions, or 3 times the regional average.
As part of the new investment charter, a portfolio of nearly 100 PPP projects should be allocated, estimated at nearly €14 billion in sectors such as transport, water, waste management, health and education.
Mega-projects by 2030-2035
Morocco has major structuring projects ahead of it which should revolutionize the country’s economic landscape and infrastructure. The country has a role to play in the development and storage of green energy, notably through the green hydrogen and battery sectors.
In terms of energy infrastructure, Morocco plans to move from a target of 52% to 62% by 2030 of ENR capacity in the Moroccan energy mix, and in terms of water management, the Kingdom plans the creation of 20 desalination stations by 2030 with the objective that 50% of water consumption should come from desalination.
The country has adopted the “Maroc Digital 2030” strategy which aims to further develop digital infrastructure with the objective of achieving a 5G coverage rate of reaching the threshold of 25% by 2026 and 70% by 2030.
Morocco will also invest in railway infrastructure, notably with the extension of the Kenitra-Marrakech line over 430 km planned before 2030 with a budget estimated at more than €5 billion.
As for port infrastructure, the Kingdom has a planned program of €1.5 billion for the modernization and greening of Moroccan ports. These include, among others, the Dakhla Atlantic port development project, a port area of more than 1,600 hectares which will be at the heart of the Royal Strategy of the Atlantic Arc, making it possible to connect the Sahel countries to the coast with an investment of more than €1.2 billion.
In anticipation of the 2030 World Cup, a budget of €5 billion is planned for projects linked to this sporting event, a third of which will be devoted to the construction and modernization of stadiums, a third to the improvement of transport infrastructure , and a final third intended for other essential infrastructures.
Airport infrastructure should undergo work. Thus, the National Airports Office (ONDA) is planning an investment plan of €1.2 billion for the extension (which varies from doubling to quadrupling of capacity) of the main international airports between 2025 and 2027.
And finally, the country plans the construction of new stadiums including the large stadium in Casablanca with 115,000 seats whose preliminary budget is set at €500M, in addition to the renovation of the stadiums in Fez, Marrakech, Agadir.
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