23008_Nearshoring Report

European businesses, especially those from France, Spain and the UK, have invested significantly in the country along with capital from further afield such as the US and UAE and Morocco enjoyed the second highest volume of FDI inflows in North Africa in 2021 (behind only Egypt). In recent years, the Moroccan Government has made it a key priority to support the development and growth of its manufacturing industries; its Industrial Acceleration Plan 2014-2020 helped to stimulate economic modernisation and foreign direct investment and the second phase for 2021-2025 seeks to consolidate this as well as focusing on technological development, SME integration and regional distribution of growth. New initiatives are being developed to align with the Government’s New Development Model vision for the country.

Automotive production in Morocco by European vehiclemakers has been well established over the past decade following the inaugural investment by Renault in 2012 and now accounts for . Renault now operate plants in Somaca, near Casablanca and in Tangier, where it has continued to invest and now operates a “zero carbon and zero industrial liquid emissions” plant. Renault’s facilities in Morocco have capacity to produce nearly 500,000 vehicles a year and the company has signalled plans to expand production further in the country. Peugeot (Group PSA) has also recently opened at EUR600 million plant in Kenitra, near Rabat with capacity to build 200,000 Peugoet 208s per year. Other carmakers and OEM producers have also chosen to locate in Morocco in a rapidly-forming vertically integrated network of primary manufacturers and suppliers. The majority of plants are located in the north of the country.

In September 2022, Renault announced that it would start making super-mini electric vehicles in Morocco plant in 2023. Renault’s affiliate Mobilize said that it would be making the Mobilize Duo, a two-seater small urban EV, in Tangier due to the competitiveness of the plant especially due to the lower production costs. RENAULT

MOROCCO Morocco is the second largest African trade partner with Europe, behind only South Africa, and benefits from free trade agreements with both the EU and the UK.

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