Mohamed Benchaaboun, director of the Mohammed VI Investment Fund and former Moroccan Minister of Economy, Finance and Administrative Reforms, has published an article in the EUobserver in which he highlights the investment and green transition developed in Morocco and the country's important role in the North African economy and its relationship with European countries.
According to Benchaaboun, inward investment has been the order of the day in Morocco, and the country's current economic situation reflects this. With World Economic Forum reports ranking the country first in North Africa in terms of competition and third in the MENA region in terms of ease of doing business, the stability and development of the country is evident.
In particular, green development. Its geographical position makes it ideal for the construction of wind and solar infrastructures all along its coastline; the Sahara desert alone could supply 10 per cent of Europe's total energy needs. The Moroccan government is aware of this and is boosting its investment in this sector. Proof of this is the recent investment of $7 billion in an ammonia factory powered by green hydrogen, produced by the state-owned company OCP.
According to Benchaaboun, both its geographical position (close to the Mediterranean and Atlantic shipping routes) and its economic stability make Morocco a particularly attractive location for European investment. In March this year, the European Union launched in cooperation with Morocco a 624 million euro programme dedicated to investing in Morocco's ambitious plans for green energy transition, as well as social protection, public administration and climate policies.
The Mohammed VI Investment Fund, announced by King Mohammed VI in July 2020, is one of the key pillars of the recovery and green growth plan. It is expected to generate a total investment envelope of 120 to 150 billion dirhams (about 12 to 15 billion euros), which could boost Morocco's GDP by 1.8 percentage points per year for three years. The fund is also seen as an opportunity to strengthen Morocco's position as a regional hub for investment and trade, especially with Europe. Morocco is already one of the EU's main trading partners in Africa and has signed several trade, investment and cooperation agreements with the bloc.
Benchaaboun also states that, 'the Mohammed VI Investment Fund will accelerate the pace of investment, promote private sector action and boost economic growth and job creation. But perhaps most importantly, the cornerstone of the fund's mission will be to bring the economy of tomorrow to Morocco. Green, digital and robust, the Fund will ensure inclusive and sustainable growth for the citizens of Morocco and its partners in Europe and Africa".
