Morocco, top outperforming FDI destination in 2023
Morocco was the top outperforming destination of the Greenfield Foreign Direct Investments (FDI) in 2023, as it attracted worldwide commitments totaling $34 billion worth of investment projects.
These pledges are projected to double the previous all-time high of $15.8 billion set in 2008, fDi Markets said in a recently released report.
The North African country has seen an influx of inward investment from Chinese companies, particularly in the electric vehicle (EV) supply chain. It has also attracted major FDI projects in renewable energy, chemicals, and tourism.
Notably, Chinese battery maker Gotion High-Tech has signed an agreement with Morocco’s government to establish its first African gigafactory in the country. Zhejiang-based mining giant Huayou Cobalt also plans to invest $19.5bn (Dh200bn) into an EV battery components factory, fDi Markets noted.
Morocco is part of the six countries that have recorded planned greenfield foreign direct investment (FDI) projects worth more than any twelve-month period in the past, according to preliminary FDI Markets figures dating back to 2003.
Besides Morocco, Malaysia, Iraq, Israel, Democratic Republic of Congo, and Finland are the six FDI outperforming countries in 2023, and are also ahead of the annual average FDI capital expenditure (capex) recorded in the decade before the Corona pandemic.
Foreign investment pledges in the six economies already surpass any previous full-year period and a few countries have registered more greenfield foreign direct investment (FDI) announcements in the first eight months of 2023 than any previous calendar year on record due to projects in the electric vehicle (EV), semiconductor, and energy sectors, fDI Markets said, explaining that Greenfield FDI pledges are a barometer for the health of host economies and future development.
Large FDI projects in strategic sectors can be transformational for host economies by creating jobs and helping to foster innovation and diversification. Besides, countries attracting major FDI projects in strategic sectors can integrate more with the global economy and move up global value chains.
