Morocco Attracts Foreign Investors Through 30% Tax Incentives

Morocco is improving its appeal toward foreign investors by offering tax incentives of up to 30%. This promises to strengthen cultural and economic ties with neighbouring countries while positioning itself as a leading investment destination in Africa and the Mediterranean region.

Karim Zidane, the Minister of Investment in Morocco, pointed out the macroeconomic and political stability of Morocco. It also emphasized the modern infrastructure and strategic location as key strengths. The minister notes how the infrastructure rivals many European countries, perhaps even surpassing them.

Main Sectors for Investment

Morocco offers great potential for multiple sectors for investors. However, priority ones include aeronautics, automobiles, agribusiness, electronics, textiles, pharmaceuticals, and offshoring industries. Emerging sectors such as green energy also draw investors, particularly when it comes to green hydrogen.

The automotive industry has seen the most growth in the past decade. At the moment, Morocco features two manufacturers (Stellantis and Renault) and 250 more international ones. It became the leading export sector of Morocco.

The tax incentive can go as high as 30% of the investment amount. These can grant direct investment subsidies based on the characteristics of the project. Morocco also offers tax exemptions in the first year for those in specific areas or new businesses.

Growth Driven through Sporting Events and Renewable Energy

Zidane explained that Morocco’s development is sped up by recent international sporting events. He explained that the 2025 African Cup of Nations will bring significant growth to the country. He also touched upon the 2030 World Cup, which they will organize alongside Portugal and Spain.

The minister addressed previous challenges in attracting foreign investors due to development needs in high-value sectors. More than 40% of their energy comes from renewable sources and these sectors are vastly improving, with the country investing in major wind and solar projects.

Zidane mentioned that the collaboration with Portugal and Spain for the World Cup is a symbol of mutual trust. He hopes that this will draw enough investors who want to take part in high-level projects.

Strategic Position for EU and US Trading

With the introduction of the US tariffs that took the entire world by storm, Morocco found itself in quite an advantageous position. Zidane credits this to the long-standing relationship between the United States and Morocco, based on a history of trust and strategic commitment.

Morocco is the only country in Africa that enjoys free trade with the U.S., with the agreement active since 2006. This ensures that investors enjoy quick access to the U.S. market for many industries, regardless of the services or goods.

Zidane also mentioned that Morocco was not featured on the tariff table introduced by President Donald Trump, “Liberation Day.” Because of this, companies from Spain or other European countries can continue exporting to the U.S. once they set up a base in Morocco.

Morocco also has a strong diplomatic relationship with Spain, enjoying a trade partnership for more than a decade. Together with the tax incentive, Zidane believes there’s great investment potential, which is only set to expand in the next decade.