China makes Morocco an essential partner for its investments in Africa
The Asian giant has set its sights on Morocco as an opportunity country with an economic fabric considered to be a breeding ground for developing its electric battery production.
- These are the reasons why China chooses Morocco
- Giant Chinese companies recently installed in Morocco
The China-Morocco partnership will give a major boost to the national economy and the country's exports, through an investment of more than 700 million dollars by Chinese companies, according to information issued by Benchmark Minerals Intelligence, the company that operates mainly in the Mining and Metals sector.
These are the reasons why China chooses Morocco
- Morocco is the world's leading Arab country with highly developed trade relations with both the United States and Europe.
- Morocco's development trajectory is reflected in major high-level infrastructure projects, industrial acceleration zones that are multiplying in the different regions of the Kingdom.
- The trade agreements signed with various countries in the world with the aim of improving transactions, increasing exports and consolidating the presence of Made in Morocco on international markets.
- The stability that distinguishes the North African country and the political will to make Morocco an example of sustainable development and synergy increasingly strong in the face of the challenges of today's world.
- Morocco's great ambition to industrialise its economy while respecting the environment represents a magnet that attracts Chinese investors to take advantage of a country aspiring to be a leader in terms of renewable energy.
- Morocco is a reliable and profitable partner for the world's major powers. It is also one of the countries with the greatest potential in Africa, with a strategic geographical position for all.
- According to the Moroccan Minister of Industry and Trade, Ryad Mezzour, Morocco will double the current production of electric vehicles in the country to 100,000 units per year by 2026.
- Relations with Europe, America, and currently with Asia are in continuous development due to the above factors, among others that encourage foreign companies, in this case Chinese, to bet on Morocco and invest in the Kingdom before thinking about other countries.
Giant Chinese companies recently installed in Morocco
One of these investors is Guchen Hi-Tech, the benchmark company in the electric mobility sector signed, in December 2023, with Morocco an important memorandum.
The result was to carry out an investment of 6.4 billion dollars, accompanied by another investment of almost 500 million from China BTR which is dedicated to the installation. Thanks to this agreement, Morocco will become one of the world's largest cathode producers.
The company's production in 2024 is expected to grow by 123% compared to 2023, reaching a turnover of 3.2 billion dollars.
The range of investments launched by China in the country will encourage Morocco to multiply its production in order to supply 25% of European demand. It is a goal whose realisation is consolidated by an investment of some 490 million dollars by BTR (a subsidiary of the Chinese group Bao'an) with an agreement signed last year.
To carry out this ambitious electrification project, a new factory will be set up in Tangier's Technopark. Through this factory, Morocco plans to produce around 50,000 tonnes of lithium-ion battery anode material per year.
After the plant opened in As Pontes, the large Chinese company Sentury Tyre has not only set up in the Kingdom of Morocco, but announced last October the expansion of its project in the country. From there, the Asian company hopes that the opening of another one in Tangier will be a success.
Once its Moroccan subsidiary is up and running, Sentury will have up to eight tyre production centres around the world: three in China, two in Thailand, two in Europe, two in Africa and one in North America.
Sentury's decision to open a production site in Morocco is further proof that it is a country that enjoys an emerging economy and has very favourable conditions for large global companies.
Morocco, with the New Investment Charter, is the African country that is working to achieve its ambitions not only to be a leader in renewable energy, but also to attract global giants in other sectors, to become one of the world's major tyre producers.