Making the most of its geographic location, Morocco's economic success for years was built on low-cost production of food, textiles and other cheap goods.
But now the focus has shifted to higher-value, high-tech industries such as pharmaceuticals, aerospace and the automotive sector, with Moroccan companies working with international partners to create integrated supply chains.
Morocco's economy rebounded strongly last year, reaching a growth rate of 7.4%, compared to a contraction of 6.3% recorded in 2020, largely as a result of strong growth in manufacturing and agriculture. The manufacturing sector accounts for 14% of GDP, slightly ahead of agriculture with its 13%.
This year's growth is likely to be a more modest 3.1% as the global economy remains weak amid the lingering COVID-19 pandemic, the Russia-Ukraine conflict and the related impact on global demand and supply chains.
Manufacturers have long been attracted to the country's location, and lower labor costs encourage companies to establish processing and manufacturing facilities focused on European markets. Over the past decade, infrastructure improvements have added to this geographic advantage.
In particular, the new port of Tangier-Med, with an annual throughput capacity of 9 million TEUs, has become the largest container port in Africa, surpassing competitors on the other side of the Mediterranean Sea, in Spain.
The port has encouraged export-oriented businesses to set up operations in and around Tangier, and Morocco's improved road and rail infrastructure has made it easier for manufacturers across the country to use the port.Link to African Business' full piece on high-tech manufacturing in Morocco