Wide-ranging reforms, political and economic stability and dedicated institutions have allowed Morocco to attract higher and more diversified inflows of foreign direct investment, although more remains to be done, an implementation report on the country's Investment Policy Review, conducted by UNCTAD, has concluded.
The report found that investment had been directed to higher-value added industries, such as the automotive, aeronautics, agro-processing sectors, and had generated tangible economic and social benefits for Morocco.
The analysis shows that a large majority of recommendations made in the IPR in 2008 have since been implemented. This was the result of a continuing reform process driven by the creation of the National Committee on Business Environment (CNEA) and of the Moroccan Investment Development Agency (AMDI).
In particular, Morocco has made significant efforts to simplify starting a business, including through the establishment of UNCTAD's eRegulations programme.
It has also begun implementing its "Plan d'accélération industrielle" (Industrial Acceleration Plan), a new approach to industrial development based on establishing efficient "eco-systems" that integrate value chains, and supplier relationships between large companies and small and medium-sized enterprises. Some reforms recommended in the IPR, however, remain a challenge. Among them is the adoption of a new investment specific legislation to replace the current "Charte des investissements" (Investment Charter).
The report was discussed at a workshop in Rabat on 13 January 2016, co-organized by AMDI and UNCTAD. The workshop, held in parallel to UNCTAD and Islamic Development Bank Group regional training on "Reforming international investment governance: challenges and implications", was attended by more than 40 participants from the Moroccan relevant ministries and agencies, and the private sector.
UNCTAD IPRs are demand-driven and provide concrete and action-oriented recommendations aimed at attracting higher levels of FDI to foster sustainable economic and social development in recipient countries. To date, 41 countries have completed an IPR and the Implementation Report of Morocco is the 11th assessment published by UNCTAD.