The European Commission's Directorate-General for the MENA region recently published an industrial mapping report that assesses six countries in the clean tech sector, including solar energy, wind energy, batteries, and hydrogen. The report ranks Morocco among the two best-equipped manufacturing bases on the southern Mediterranean coast for clean technologies. However, it also highlights certain challenges and gaps that need to be addressed. The report examines the business and industrial landscape of clean energy technologies between the European Union and the MENA region.
The report explores how an accelerated energy transition, combined with climate commitments, industrial policy, and energy security, can reshape clean tech value chains and create new opportunities for cooperation between the EU and the MENA region. The assessments conducted in the six chosen countries support a differentiated strategy. The United Arab Emirates and Saudi Arabia are better positioned for capital-intensive, manufacturing, and energy segments. In contrast, Egypt and Morocco offer the most solid euro-Mediterranean production platforms, relying on established industrial bases and logistical and commercial advantages.
Morocco has emerged as an attractive and export-oriented destination for clean tech manufacturing, leveraging its proximity to Europe, modern logistical infrastructure, and proactive policies for the industrial ecosystem. The country has developed manufacturing capacities in several sectors related to clean tech, including transformers, electrical equipment, cables, solar water heaters, and certain components for renewable energies. Morocco has also attracted significant new investments along the battery value chain. Recent investments in battery materials and manufacturing have strengthened this industrial platform, supported by Morocco's proximity to European markets.
Morocco's phosphate resources could offer opportunities in lithium-iron-phosphate (LFP) battery materials and complement the development of future green ammonia value chains. The country's automotive and aerospace sectors provide a solid industrial base, established supplier networks, and a pool of transferable skills that can support the development of clean tech manufacturing. Morocco benefits from extensive trade agreements, proximity to European markets, and modern logistical infrastructure centered around Tanger Med. These factors have facilitated integration into international manufacturing value chains, particularly in the automotive and aerospace sectors.
Green hydrogen has become a key element of Morocco's industrial strategy. The country has adopted a specific regulatory framework for hydrogen and is generating significant international interest. The report highlights that human capital and industrial capacities are major assets, but several clean tech manufacturing segments are still in the early stages of development. Experts consider Morocco one of the most attractive destinations in the region for clean tech industrial investments, citing stability, industrial infrastructure, investment promotion institutions, and access to international markets as key factors.
Despite a positive overall policy orientation, the report identifies challenges related to implementation, including slow administrative procedures, permit and authorization delays, and the time required to operationalize support mechanisms and investment programs. The report also notes that Morocco's geopolitical risk profile reveals institutional and governance performance below the MENA region average in five areas: government integrity, judicial system effectiveness, property rights, anti-corruption efforts, and political stability.
The report concludes that Morocco's strengths lie in ICT, energy, and structural transformation, while transportation, human capital, and private sector development remain weaker and continue to hinder the country's competitiveness and investment. The Moroccan government must address these challenges to fully leverage its potential as a leader in clean tech manufacturing in the MENA region. By doing so, Morocco can capitalize on its strengths and improve its institutional and governance performance to attract more investments and drive sustainable growth.
Key points
- Morocco ranks among the top manufacturing bases for clean technologies in the MENA region.
- The country has developed manufacturing capacities in several sectors related to clean tech.
- Morocco's phosphate resources could offer opportunities in lithium-iron-phosphate (LFP) battery materials.
