Moroccan Investments in Africa: Morocco Strengthens its Position

The latest note from the Central Bank of Egypt indicates that Morocco occupies the 7th position in terms of foreign direct investment in Egypt over the period from July 2021 to the end of March 2022. Investments that continue to increase gradually.

Morocco continues to consolidate its position as a dynamic investor in Africa. The 5th edition of the annual Barometer, established by the Havas group, indicates that Morocco occupies the 5th position in the ranking of investments in Africa.

Indeed, according to the figures of the Office of Foreign Exchange for the year 2021, Moroccan direct investment abroad (IDME) amounted to $114 million (1.2 billion dirhams) in Côte d’Ivoire, which ranks first.

The Kingdom is followed by Egypt, which has accumulated total investments of around $40.4 million (465 MDH). This trend has continued during the first quarter of 2022, especially for Egypt.

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The updated data shows that Morocco is the 7th Arab investor in the country

This is what emerges from the latest note published by the Central Bank of Egypt, which highlights the amount of investment that amounts to $6.3 billion (MM$) of net direct investment during the period from July 2021 to March 2022.

Compared to a year earlier ($2.3 billion), these MSDIs have grown by 172%. And it is the United Arab Emirates that is positioned at the top of the list with $2.67 billion in the third quarter, against $1.47 billion, or more than 83% in one quarter.

For Morocco, investments amounted to $17 million in the third quarter, against $14 million the quarter before, an evolution of about 21.5%.

It should be noted that in the first quarter of 2022, Moroccan direct investment abroad stood at $427 million (4.5 billion dirhams), showing a decline of 15% or -$75.7 million (-797 million dirhams) compared to the same period of the previous year.

Over the year 2021, MSDIs reached $1.73 billion (18.2 billion dirhams), an increase of $1 billion (10.6 billion dirhams) over one year. Thus, the net flow has achieved an evolution of 4.5%. In terms of sector, it is the financial and insurance activities that monopolize the lion’s share with a total amount invested of $247 million (2.6 billion dirhams).

The industry comes in second place and Egypt ranks 5th among the main destinations. As a reminder, the statistics of the Office of Foreign Exchange show that Africa is the main destination of Moroccan direct investment abroad with a share of 58.1%, against 58.5% in 2020 and 57.7% in 2019.

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(Featured image by Tumisu via Pixabay)

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First published in LES ECO.ma, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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