By Spy Uganda
Morocco is pushing to diversify its investment portfolio in Africa, as a strategy to bolster Pan-African strategy.
A report by Morocco’s Agency for Development of Investment and Export (AMDIE) and Mazars has estimated Morocco’s investments in Africa at around $4 billion.
Mazar is a french based consulting firm operating in 90 countries specializing in tax and audit advisory services, according to the group’s website.
The report, titled “Analysis of investment in Africa in 2020,” was released on the African commemoration day last Tuesday and highlighted Morocco’s stellar performance as a leading investor in the continent.
The kingdom has proved its Pan-African vision by signing trade agreements with many countries in Africa, averaging 1,000 trade agreements in the last 20 years.
Morocco adhered to the economic community of West Africa and ratified the African Continental Free Trade Area (AfCFTA) agreement in March 2018. The AfCFTA is the largest free trade agreement globally with the potential to surpass larger trade blocs such as the EU in performance.
With nearly $4 billion invested in the last four years in over 30 African countries, Morocco has enriched its portfolio and demonstrated its interest in the prospects of development in Africa.
The continent has experienced unprecedented economic dynamism and growth and is the world’s second-fastest-growing economy, according to a 2017 report by the African bank.
Despite a sharp decline in foreign direct investment (FDI) in 2020, occasioned by the COVID-19 pandemic, the African economy is expected to rebound as global activity resumes.
However, Morocco’s interest in developing its relationship with West African countries is not a new trend. The kingdom has a long-term goal of increasing its African economic exchanges to 60% by 2022.
Featured by Forbes as the emerging 5th strongest economy in Africa by 2021, Morocco is driven by its desire to develop several economic sectors.
Additionally, Maroc Telecom, the largest telecommunications company in Morocco, operates in 11 countries in Africa and has invested over €6 billion (MAD 37 billion) to improve its services in the continent.
Morocco is also seeking to use its expertise in renewable energy to help sub-Saharan countries progress towards sustainable development.
Morocco’s interest in Africa is economical as government officials have emphasized Morocco’s “Africaness” on several occasions saying Morroco-African-oriented policy, including its interest in investing in the region, bolsters its Pan African strategy.