The longstanding economic ties between Morocco and France are entering a new, dynamic phase as French President Emmanuel Macron prepares for a state visit to Morocco. This highly anticipated visit is expected to mark a turning point in the bilateral relationship, focusing on economic cooperation, mutual investments, and shared strategic goals for future development.
Strong trade growth between Morocco and France
Trade relations between the two countries have seen significant growth, with a 24% increase in 2022. This surge was largely driven by rising French exports, particularly in the cereals sector. France has also managed to drastically reduce its bilateral trade deficit by 72% compared to 2021, solidifying its position as Morocco’s second-largest supplier after Spain. These figures reflect a robust and positive trade dynamic between the two nations.
France remains the leading foreign investor in Morocco, accounting for nearly 31% of the total foreign direct investment (FDI) stock in the country. French investments saw a remarkable boost in 2023, with net FDI inflows reaching 6.8 billion dirhams—up 79.5% from 2022. According to the 2023 annual report from Morocco’s Foreign Exchange Office, French investments comprised 61.4% of Morocco’s total FDI inflows. The presence of major French companies, including several CAC 40 giants, further strengthens these economic ties.
Morocco: A growing investor in France
Morocco is also expanding its investments in France, emerging as the leading African investor with a portfolio exceeding 1.8 billion euros. In 2023, Moroccan Direct Investments Abroad (IDME) reached an all-time high of 25.6 billion dirhams, marking a strong recovery post-pandemic. France remains the top destination for these investments, attracting around 60% of Moroccan FDI in 2022. The Moroccan banking sector, in particular, has played a significant role, injecting over 1.67 billion dirhams into France’s market in 2022.
Morocco’s industrial sectors, particularly in automotive and aerospace, have become key areas for French businesses. The country’s rapidly developing ecosystems in these industries offer strategic production advantages for French companies.
Focus on renewable energy, diaspora & tourism
The transition to renewable energy and sustainable development is at the heart of the Morocco-France partnership. Major projects in solar energy, green hydrogen, and civil nuclear power demonstrate the two countries’ commitment to addressing global energy challenges.
In 2022, remittances from the Moroccan diaspora in France reached 3.3 billion euros, while French tourists generated nearly 3 billion euros in revenue for Morocco. These financial flows highlight the crucial role of migration and tourism in Morocco’s economy.
A key role for the French Development Agency (AFD)
The French Development Agency (AFD) continues to be a central player in the bilateral relationship, with over 3.7 billion euros in commitments to Morocco. AFD’s funding focuses on projects in transportation, environmental sustainability, and energy transition.
Looking ahead, the France-Morocco partnership is set to focus on green technologies, digital innovation, and economic sovereignty, aligning with Morocco’s broader goals. This collaboration supports a shared vision of co-investment, technology transfer, and co-industrialization, with a focus on Mediterranean, African, and Atlantic dimensions.
