---Interview with H.E. Mr. ABDELKADER EL ANSARI, Ambassador Extraordinary and Plenipotentiary of the Kingdom of Morocco to the People’s Republic of China
VICTWO: How would Your Excellency evaluate bilateral relations between China and Morocco?
AMBASSADOR: Bilateral relations between China and Morocco have significantly strengthened over the past decade, particularly in economic cooperation, trade and investment. The two countries have developed a robust partnership characterized by mutual interests and strategic collaborations.
As of 2023, the trade volume between the two countries exceeded $7.2 billion, reflecting a marked increase from previous years. China is Morocco’s 3rd commercial trading partner and the first one in Asia.
Investment figures also illustrate the deepening economic ties. Chinese companies are investing heavily in various sectors in Morocco, ranging from infrastructure projects to industrial high technology development. Additionally, Chinese firms have been involved in renewable energy projects, mining, and manufacturing, further solidifying their presence in the Moroccan market.
Morocco's participation in the Belt and Road Initiative (BRI) presents significant opportunities for deepening bilateral cooperation with China. As the first country in the Maghreb and one of the first in Africa to join the BRI, Morocco has positioned itself as a strategic partner in this ambitious global development strategy.
The BRI framework facilitates enhanced trade and investment flows, infrastructure development, and connectivity between our countries. Projects like the Mohammed VI Tangier Tech City exemplify the potential for large-scale industrial and technological collaborations, attracting numerous Chinese enterprises to invest in Morocco.
Chinese EV manufacturers face challenges like labor shortages, high energy prices, and geopolitical uncertainties. Morocco offers solutions with its skilled workforce, competitive green energy, and strategic location. Morocco’s vast reserves of essential minerals for EV batteries, such as phosphate, combined with China’s expertise in battery manufacturing, present significant opportunities for collaboration. Measures like the no-visa policy for Chinese citizens and special economic zones for Chinese investors have already facilitated business between the two countries.
Moreover, the Forum on China Africa Cooperation (FOCAC) provides a robust mechanism for strengthening bilateral economic ties, promoting sustainable development, and fostering mutual benefits. Through FOCAC, Morocco and China can explore new avenues in areas such as renewable energy, digital economy, and industrial modernization, leveraging Morocco's strategic location and resource potential to drive economic growth and regional integration.
VICTWO: Why is Morocco a good investment destination?
AMBASSADOR: Morocco presents a compelling case as an attractive investment destination due to several key factors. Its strategic location at the crossroads of Europe, Africa, and the Middle East makes it a gateway for accessing multiple markets. The country’s proximity to major shipping routes and its well-developed port infrastructure, particularly in Tangier and Casablanca, enhance its logistical advantages.
Morocco boasts a stable political environment and a business-friendly regulatory framework.
The government has implemented numerous reforms to improve the ease of doing business, streamline administrative processes, and provide legal protections for investors. This stability is bolstered by the vision of His Majesty King Mohammed VI for sustainable and inclusive development, which has transformed Morocco into a low-carbon manufacturing platform.
The Moroccan economy is diversified, with significant contributions from sectors such as agriculture, manufacturing, mining, and services. The government’s focus on sectors like automotive, aerospace, renewable energy, and digital technologies aligns with global economic trends and attracts foreign investment. The country has created 54 industrial ecosystems within 14 clusters, generating nearly 600,000 new jobs from 2014 to 2020.
Additionally, Morocco has a young and increasingly skilled workforce. Investments in education and vocational training programs equip its labor force with the skills needed in key industries. The Moroccan government also offers a range of incentives to attract foreign investment, including tax breaks, subsidies, and free trade zones, making it financially attractive for companies to set up operations in Morocco.
VICTWO: How has Chinese investment been doing in Morocco?
AMBASSADOR: Chinese investments in Morocco have been robust and multifaceted, encompassing various sectors. A prime example as I mentioned is the Mohammed VI Tangier Tech City, developed in collaboration with China’s CCCC Group and its subsidirary CRBC, which aims to create a hub for technology and manufacturing industries. This ambitious project is expected to generate thousands of jobs and attract numerous international companies.
Chinese companies have also invested significantly in Morocco’s renewable energy sector, particularly in solar and wind energy. The Noor Ouarzazate Solar Complex, one of the largest solar power plants in the world, has seen significant Chinese investment. These efforts align with Morocco's commitment to renewable energy, which began in 2009, leading to 52 large-scale renewable projects and a target to reach 52% renewable energy capacity by 2030.
Chinese companies have been involved in various infrastructure projects, including the development of roads, ports, and industrial parks, enhancing Morocco’s economic landscape. The increase in foreign direct investment (FDI), which grew by 21% year on year in 2022, reflects renewed confidence in Morocco's economy.
VICTWO: Which sectors in Morocco could be main target for investors in the following years?
AMBASSADOR: Several sectors in Morocco present promising opportunities for future investment, particularly those related to technology. The automotive and aerospace industries in Morocco are growing rapidly, with the country becoming a regional hub for automotive manufacturing. Major international companies have set up production facilities, and the sector continues to attract investment. Morocco’s annual production capacity currently stands at 700,000 vehicles, expected to rise to nearly 1 million following Stellantis’ expansion plans.
Morocco also has ambitious plans to increase its renewable energy capacity, aiming to generate 52% of its electricity from renewable sources by 2030. This presents opportunities for investment in solar, wind, and hydroelectric projects. The country has implemented significant projects like the Noor Power Station and the Tarfaya wind farm, making it a leader in renewable energy in Africa.
The Moroccan government is keen to develop its digital economy, and investments in ICT infrastructure, startups, and technology parks are encouraged to foster innovation and digital transformation. The pharmaceutical and healthcare sectors offer significant investment potential as well, with a growing population and increasing healthcare needs. Morocco’s pharmaceutical industry, which covers 65% of its domestic needs and exports 20% of its production, presents opportunities for growth and investment.
Additionally, the agricultural sector remains a cornerstone of the Moroccan economy, and innovations in agri-tech, including precision farming, irrigation technologies, and sustainable practices, are critical for enhancing productivity and sustainability.
VICTWO: How does the government of Morocco take measures to attract new investors?
AMBASSADOR: The Moroccan government employs various measures to attract new investors, including tax incentives, financial support and streamlined processes.
To further support and guide foreign investors, Morocco has established the Ministry of Investment, Convergence, and Evaluation of Public Policies. This new ministry is dedicated to assisting foreign investors throughout the investment process, ensuring that their projects are implemented smoothly and effectively. This development underscores Morocco's commitment to creating a conducive environment for foreign investment.
Investors can benefit from tax exemptions and reductions, particularly in free trade zones and under specific investment agreements. The government also offers grants, subsidies, and financial support for projects that align with national development goals.
Efforts to reduce bureaucratic hurdles and streamline administrative procedures have been implemented to create a more investor-friendly environment. Additionally, the government encourages public-private partnerships (PPPs) to facilitate large-scale infrastructure and development projects.
The Moroccan Embassy in Beijing plays an interface role to promote and facilitate investment. It organizes investment forums, business delegations, and networking events to connect Moroccan opportunities with Chinese investors. Be it through initiatives like the Morocco NOW brand or dedicated trade and investment promotion events, the Embassy seeks to facilitate business partnerships, enhance mutual understanding, and promote bilateral economic growth.
Moreover, the new Investment Charter recently adopted by Morocco aims to bolster the country's business climate and provide substantial incentives for investors. This Charter introduces a comprehensive framework designed to attract both foreign and domestic investments, with a strong emphasis on creating jobs and adding value to the Moroccan economy. It includes financial incentives targeted at strategic projects, small and medium-sized enterprises, and startups. The Charter also focuses on regional development, offering differentiated incentives to direct investments towards less developed areas of the country.
VICTWO: Specifically, what potential or opportunity do you think our two countries have in science and technology cooperation?
AMBASSADOR: The potential for science and technology cooperation is vast, encompassing various levels. At the government level, both countries can collaborate on national projects in areas such as renewable energy, environmental protection, and technological innovation. Joint research initiatives and technology transfer agreements can be pursued to benefit both nations. Establishing science parks and innovation hubs in collaboration with Chinese counterparts can foster an environment of shared knowledge and technological advancement.
Encouraging partnerships between Moroccan and Chinese tech companies can lead to the development of new products, services, and solutions. Joint ventures in sectors like fintech, artificial intelligence, and biotechnology are promising areas for collaboration. Additionally, collaborative programs between Moroccan and Chinese universities and research institutions can enhance academic exchanges, joint research projects, and the development of new technologies. Morocco's investment in education, which produces 24,000 newly graduated engineers and technicians annually, provides a strong foundation for such cooperation.
VICTWO: Would you like to share some information regarding tourism in Morocco, like how many Chinese tourists you receive every year, what is there specially to see and to experience in Morocco?
AMBASSADOR: Morocco is a renowned tourist destination, attracting visitors from all over the world, including a growing number of Chinese tourists. In recent years, the number of Chinese tourists visiting Morocco has increased significantly, with over 200,000 Chinese tourists visiting annually as of 2023. Morocco offers a rich cultural experience, with diverse attractions including historical sites, natural beauty, cultural festivals, and gastronomy.
The country is home to several UNESCO World Heritage sites, such as the medinas of Fez and Marrakech, the ancient Roman ruins of Volubilis, and the Kasbah of Ait Benhaddou. Morocco’s varied landscapes, from the Sahara Desert to the Atlas Mountains and beautiful coastal areas, offer unique experiences for nature lovers and adventure seekers.
Morocco also hosts numerous cultural festivals throughout the year, celebrating its rich heritage in music, arts, and cuisine. Events like the Marrakech International Film Festival and the Fes Festival of World Sacred Music attract international audiences. Moroccan cuisine is renowned for its rich flavors and diversity, with traditional dishes like tagine, couscous, and pastilla being must-try culinary experiences for visitors.
To sum up, Morocco's growing economic ties with China, combined with its strategic advantages and proactive measures to attract investment, create a conducive environment for bilateral cooperation. The potential for collaboration in various sectors, particularly in technology and innovation, holds promise for the future, while Morocco’s rich cultural heritage continues to make it an attractive destination for tourists.
