Morocco has made significant progress in attracting investments, rising to fourth place in the African continent, according to a report by Rand Merchant Bank, a subsidiary of the South African financial group FirstRand. The report highlights Morocco's strong economic growth, with a GDP growth rate of 4.9% in 2025. This growth is driven by various factors, including a thriving automotive sector and increasing foreign investment.
The automotive sector in Morocco has experienced remarkable growth, with car production increasing from less than 290,000 units in 2015 to a much higher number in recent years. The sector has also seen significant investments from major manufacturers such as Renault and Stellantis. As a result, Morocco's exports of vehicles and components reached a record high of 157.6 billion dirhams (approximately $15.7 billion) in 2024, representing a 6.3% increase from the previous year.
Foreign direct investment in Morocco has also shown a significant increase, with net inflows rising to $3.3 billion in 2025, up from $1.7 billion in 2024. This represents a 91% increase and one of the highest levels on record. The tourism sector has also contributed to this growth, with Morocco welcoming 19.8 million visitors in 2025 and earning 124 billion dirhams (approximately $13 billion) in tourism revenues.
The report highlights Morocco's competitive edge in attracting investments, with the country being the only one to improve its ranking among the top five in the continental ranking. This is attributed to Morocco's diversified economy, business-friendly environment, and significant investments in infrastructure. The country's participation in hosting the 2030 World Cup with Spain and Portugal is also expected to boost investment in infrastructure and tourism.
The International Monetary Fund (IMF) has also expressed optimism about Morocco's economic prospects, forecasting a gradual reduction in the budget deficit to 3.5% of GDP in 2025. The IMF also expects Morocco's debt-to-GDP ratio to decline from 67.1% in 2025 to 60.5% by 2031. Morocco's economic growth is expected to continue, driven by its strong fundamentals and investment-friendly environment.
One of the key factors that distinguish Morocco from other countries in the region is its stability and lack of significant disruptions, such as the electricity shortages and logistical challenges faced by South Africa. Morocco's recent upgrade to investment grade by S&P Global Ratings has also enhanced its credibility and access to financing.
The ranking is based on 20 indicators across four pillars, including economic performance and growth potential, market access and innovation, investment climate, and social and human development. Morocco's progress in these areas has enabled it to move up the rankings, while Seychelles, Mauritius, and Egypt maintained their top three positions in the continental ranking.
Key points
- Morocco ranks fourth in Africa for investment attractiveness
- Morocco's automotive sector and foreign investment have driven economic growth
- The country's participation in hosting the 2030 World Cup is expected to boost investment in infrastructure and tourism
