Twenty-six years ago,no one would have imagined that Morocco’s top exports would be cars. Morocco’s GDP,thanks to the King’s far-sighted approach,has more than doubled in a tough environment reaching some $130 billion,thanks to different economic policies spurred by the King,with the industry at its heart.
Industry has helped Morocco reduce dependence on the climate-vulnerable farming sector. With an industrial acceleration plan that promoted investments in the automotive and aerospace sector,Morocco managed to offset the impact of drought on growth.
This year,despite the sixth consecutive dry year,Morocco’s economy is still expected to grow 4% this year,from 3.8% last year,according to the planning agency,which expects a rise in exports of manufactured goods.
Automotive
In July,Stellantis announced the increase of its production capacity at the Kenitra plant to 534,000,a milestone that together with Renault plants in Tangier and Casablanca will increase Morocco’s production to 1 million cars annually.
This performance will help Morocco expand the gap with its African competitors south Africa.
Morocco is also preparing its automotive sector for electric mobility,attracting investments in the electric battery supply chain.
In June,Morocco has officially entered the global electric vehicle (EV) battery supply chain with the inauguration of COBCO’s lithium-ion battery material plant in Jorf Lasfar,south of Casablanca.
Capitalizing on available raw materials,notably phosphates,copper and cobalt,Morocco also builds on its trade deals,skilled work force and expanding automotive sector to attract a growing number of EV battery manufacturers.
Besides Cobco,the Moroccan government agreed in 2024 with China’s Hailiang and Shinzoom to set up two separate plans to produce copper and anodes respectively for a combined total nearing 1 billion dollars in Tanger Tech.
The same year,BTR New Material Group also signed a deal with the Moroccan government to set up a cathodes plant,critical to EV battery manufacturing.
To attract global manufacturers,the Kingdom built on world-class infrastructure,such as the Tangier Med port- the largest in the Mediterranean and Africa- to allow better access of automotive investors to global markets.
Morocco’s Free Trade Agreements with major markets in Europe,the Middle East and the US,encouraged further investments by parts manufacturers and electric battery supply chain,positioning the kingdom as one of the most competitive automotive industry destinations,almost on par with China.
By 2026,Morocco,already Africa’s top car producer,would be able to double its current production capacity to 1.5 million cars,according to industry minister.
Aerospace
Morocco’s aerospace industry sector has 142 companies employing over 20,000 people with a total output of $2 billion.
The aerospace industry cluster in the country moved from sample wiring industry to producing more sophisticated engine parts.
Officials say the country is well-positioned to host a whole airoplane assembly plant,thanks to the existence of suppliers at all levels,providing parts to world giants such as Airbus,Boeing and Safran.
Fertilizers
Morocco has developed its phosphates-related industries to become the largest fertilizer exporter in Africa.
State-owned company,OCP,expects to produce 20 million tonnes of fertilizers by 2027,from 12 million in 2022.
To do that,the company is investing in green ammonia and desalination along with the establishment of production and blending units across the continent.
Sovereignty
In the wake of the Covid pandemic,King Mohammed VI urged industrial sovereignty to ensure availability of vital goods,such as medicine.
The country has invested in producing vaccine and vital medicine. Now,70% of the medicine used in Morocco are locally produced,according to official data.
Investments in medicine and vaccine,enable Morocco to build strategic stockpiles and export surplus to African markets,while reducing prices locally to Moroccan patients.
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