The Moroccan market offers a vibrant and diverse economic landscape that reflects the country’s unique social and economic dynamics. It represents a combination of tradition and modernity, offering a rich field of opportunities for businesses and investors. With a population of over 38 million and a GDP growth of +3%, Morocco is identified as Africa’s fifth largest economic power and is positioned as a key player in the regional and global economy with unique characteristics.
4 characteristics that make Morocco economically attractive
- Strategic geographical location: it presents itself as a natural Hub of the Mediterranean region. Morocco aims to become the main trade hub in the Euro-Mediterranean space, establishing itself as a bridge between North Africa, Africa and Europe.
- Political and economic stability: constitutional monarchy, with relative political stability compared to some of its neighbors in the North African region.
Morocco is a signatory and active player in the AfCFTA – African Continental Free Trade Area, which establishes an African Continental Free Trade Area among 54 countries, with the aim of accelerating intra-African trade and strengthening Africa’s trade position in the global market.
- Export-oriented economy: heavily dependent on imports due to lack of natural resources, with the exception of phosphates, the country imports about half of its needs.
Morocco is also an attractive destination for investment due to its focus on renewable energy.
- Strategic partnerships: King Mohammed VI has implemented a series of political and economic reforms in recent years, encouraging the country’s openness to foreign investment and promoting the modernization of the economy.
Trade relations between Morocco and Italy are also growing strongly, with trade volume increasing significantly to more than 2 billion euros annually.
Agriculture: one of the main drivers of the Moroccan economy
Despite the recent downturn due to drought in recent years, agriculture remains one of the main drivers of the Moroccan economy. It is worth about 14 percent of GDP and involves 40 percent of the labor force, producing a wide range of products such as cereals, citrus fruits, olives, fruits, vegetables, legumes, meat, fish, and wine.
However, only 20 percent of Morocco’s agricultural land is currently worked with modern technologies, indicating significant potential for the introduction of innovative solutions and advanced technologies, an area where Italian SMEs can play a key role.
Government policies for the development of the agricultural sector in Morocco aim to modernize the agribusiness industry and improve its competitiveness. In addition, the Moroccan government has launched a plan to support the agricultural sector worth about $1 billion in 2023.
Italian imports from Morocco are led by agribusiness products, and Italy is Morocco’s third largest supplier after the United States and France. This privileged positioning offers Italian SMEs the opportunity to expand their presence and offer cutting-edge technologies and machinery for agricultural mechanization, thus helping to improve the efficiency and productivity of the Moroccan agricultural sector.
Morocco is currently actively engaged in the modernization and sustainability of the agricultural sector, with an increasing focus on responsible water use and the adoption of environmentally sustainable technologies. This favorable environment for sustainable initiatives opens up additional space for Italian SMEs specializing in plant-based and free-from products, as well as companies offering solar-powered irrigation solutions. The prospects for collaboration between Italian SMEs and Morocco in the agricultural sector are encouraging, with market space for agricultural machinery of various sizes and innovative irrigation systems.
Trade fair events in Morocco
Trade fair events such as SIAM – Salon International de l’Agriculture au Maroc offer Italian companies an important platform to get in touch with the offerings of the Moroccan agricultural sector and to establish profitable business partnerships.
Roncucci&Partners was present this year at the 16th edition of SIAM, held from April 22 to 28 in Meknes, flanking Italian companies in the agricultural machinery sector in their process of expansion into this market rich in opportunities but with unique challenges to be faced with a well-defined strategy.
The combination of strong demand for modern agricultural technologies and a growing commitment to sustainability creates an ideal environment for Italian companies eager to expand their operations and contribute to the development of the Moroccan agricultural sector.
Not only agriculture…
The Moroccan market represents fertile ground for Italian SMEs not only in the agricultural sector but also in strategic sectors in which Italy excels such as:
- Renewable energy: A leading sector that takes advantage of the wealth of natural resources available, the government is strongly committed to environmental sustainability through targeted policies and incentives, thus creating a favorable environment for companies operating in this field. A regional leader and engaged with other African countries in promoting sustainable energy projects continentwide, it has launched an ambitious program to increase energy production from renewable sources, such as solar, wind and hydropower, with the aim of reducing dependence on energy imports and promoting economic development. This opens new opportunities for Italian companies specializing in clean energy-related technologies and services.
- Manufacturing Industry: Morocco has developed a strong manufacturing base, thanks to the country’s growing industrialization and its strategic location between Europe and Africa. Morocco is developing as a regional manufacturing hub, with growing domestic demand and good export capacity to international markets. Italian SMEs can benefit from a number of advantages, including competitive labor costs, government incentives for investment, and a developing logistics network. In addition, Morocco offers a platform for manufacturing in several sectors, including textiles, agribusiness, automotive, selectronics and aerospace, with opportunities for local partnerships and access to emerging markets through trade agreements and industrial free zones.
- Infrastructure and Construction: Morocco is undergoing a phase of significant development in the construction sector, motivated by the adaptation and modernization of cities in view of social changes and the upcoming major international events hosted and organized by the country: the African Cup of Nations in 2025 and the World Cup in 2030. Significant investments are currently being made in major infrastructure and urban development projects: highways, high-speed railways, modern ports, and international airports. The Moroccan government promotes public-private partnerships (PPPs) for infrastructure development, facilitating collaboration between Italian companies and local government agencies. In parallel, Morocco is developing specialized industrial and tourism zones that require modern and innovative infrastructure, providing opportunities for Italian companies to contribute specialized expertise to the development of these areas.
- Tourism: According to “Travel of Earth” and “TripAdvisor,” Morocco enters the list of the world’s 5 fastest growing tourism destinations in 2024. Tourism contributed nearly 11 percent to GDP in 2022, with a total value of 145.7 billion dirhams ($14.2 billion), marking an annual change of 85.4 percent (WTTC). Projections call for 14 million visitors by the end of the year, confirming the sector as one of the pillars of the Moroccan economy. This context offers numerous collaboration opportunities for Italian companies in the hospitality, tourism services, interior design and handicraft sectors.
To fully capitalize on these prospects, Roncucci&Partners acts as a strategic partner and offers a targeted and customized approach to facilitate entry into the Moroccan market. Thanks to our consolidated experience and deep knowledge of the local context, we support companies in defining winning strategies, identifying business opportunities and effectively managing operational challenges. With Roncucci&Partners, SMEs can face the internationalization path with confidence, achieving tangible results and taking full advantage of the potential of the Moroccan market.
At Roncucci&Partners we help companies develop themselves and their business, embrace change and evolve to thrive in a world that is increasingly complicated, insidious and requires great expertise. We do this by applying punctual methods and rigorous strategies, the result of many years of experience and the richness of the numerous success stories we have conducted all over the world. Passion and method are indeed our guides to enhance the present and build the future.
