Morocco advances industrial strategy through tech and semiconductor growth

Morocco is actively transitioning from a low-cost manufacturing hub to a high-tech industrial player, aiming to increase its role in global supply chains. The country is leveraging its strategic position between Europe and Africa, supported by numerous trade agreements and the African Continental Free Trade Area (AfCFTA).

Key industrial developments include:

- Semiconductor Industry: Morocco hosts established operations, such as STMicroelectronics’ packaging and testing facility in Bouskoura, which employs approximately 3,100 people. - Foreign Investment: Inbound foreign direct investment rose by 50.7 percent in the first nine months of 2024, exceeding $1.6 billion. This includes interest from Chinese investors in the automotive and cable sectors, and Indian companies relocating industrial activities from Europe to Tangier. - Startup Ecosystem: The government is investing 1.3 billion dirhams to support domestic startups, targeting the creation of 1,000 startups by 2026 and 3,000 by 2030 through specialized free zones. - Textile and Logistics: The country remains a critical proximity production center for major European firms like Inditex, providing rapid response capabilities for the European market.

This shift focuses on gaining technological sovereignty through increased investment in engineering, design, and component management to move up the value chain.