AGP Executive Report

China-Africa Trade Push: China says it will keep signing economic partnership deals with African countries and is already seeing shipments clear under its zero-tariff policy, including Morocco gypsum moving smoothly into the Chinese market. Morocco Logistics Momentum: DP World’s Atlas shipping service is now in its first six months, linking Agadir and Casablanca to London Gateway and Antwerp with dedicated reefer capacity—aimed at cutting cold-chain risk and road congestion. Ports Expansion Drive: Morocco is accelerating port and maritime investment through 2030, targeting new ports, expanded terminals, and more ship-repair capacity to boost handling volumes and maritime sovereignty. Sahara Diplomacy: The U.S. is stepping in to ease the Morocco–Algeria Western Sahara rift, citing UN-backed pathways and Morocco’s autonomy plan as Russia’s influence wanes. Skills & Jobs Funding: AfDB approved €200m for vocational training and employability under “Cap Compétences 2030,” while also backing OCP with a €450m partial credit guarantee tied to green phosphate investment. Cost Pressure at Home: Morocco’s inflation hit 1.7% in April as fuel and transport costs rose amid Middle East-driven energy volatility.

Morocco Budget Shock Response: Morocco approved 20 billion dirhams in extra 2026 credits to cushion the Middle East war’s impact—boosting butane and transport subsidies, funding flood recovery, and covering emergency spending. Food & Farm Cost Pressure: Farmers say fuel and nitrogen fertiliser prices are still biting despite government support, with some describing profits as gone—“we’re only working to pay for fuel.” Logistics & Trade Friction: Importers report Chinese truck registrations frozen after customs clearance, leaving fleets idle and costs piling up—an issue that could ripple through freight capacity. Safety & Housing Enforcement: A Fez building collapse killed seven, blamed on illegal construction, reigniting scrutiny of enforcement and unsafe-building programs. Industry Moves: Swissport signed to acquire Swiftair Maroc, expanding air-cargo handling at Mohammed V. Sustainability Spotlight: UIA and UN-Habitat named winners for the UIA 2030 Award, with Morocco-linked attention on water and resilience themes.

Budget Shock Absorber: Morocco has approved 20 billion dirhams in extra 2026 credits to cushion the Middle East war’s impact—8bn for butane gas and food/transport subsidy support, 4bn for social and investment transfers, 2bn for flood recovery, and 2bn more for equipment and emergency spending. Logistics Headache: Imported Chinese trucks are piling up in Morocco because NARSA-linked certification centers have frozen registration files, leaving fleets idle and importers stuck with mounting costs. Sahara Diplomacy: Ivory Coast and Dominica have publicly reiterated support for Morocco’s Autonomy Plan, adding momentum to Rabat’s wider alliance-building push. Food & Farming Relief: Morocco’s grain harvest is looking unusually strong, with officials eyeing output near 90 million quintals after better rainfall. Aquaculture Restart: Dakhla has lifted shellfish restrictions in key zones after toxin levels fell, reopening oyster and related harvesting. Tech & Jobs Push: Morocco is doubling down on gaming—Morocco Gaming Expo 2026 spotlights state-backed support for startups, training, and export ambitions.

Trade Diplomacy: Morocco and Bangladesh agreed in Rabat to deepen cooperation on trade, investment, agriculture, skills and multilateral coordination, with talks also pointing to a possible free trade agreement and business-delegation exchanges. Digital & Creative Industry: Morocco opened the 3rd Morocco Gaming Expo in Rabat, aiming to grow its gaming ecosystem and push youth training and startup support as the sector targets 1% of global turnover by 2030–2032. Port Electrification: Kempower and APM Terminals signed a three-year framework to roll out DC fast-charging infrastructure across terminals, with pilot work already under way in Morocco. Energy Pressure Context: With Middle East tensions still driving global energy costs, Morocco’s budget support for subsidies and flood-related spending continues to be a key backdrop to industrial planning. Mining Update: Aya Gold & Silver reported new high-grade drill results at Boumadine in Morocco, reinforcing continuity along the main trend.

Morocco–France Reset: Rabat and Paris are preparing a treaty to deepen ties during King Mohammed VI’s upcoming state visit, with France backing renewed Western Sahara talks on autonomy under Moroccan sovereignty—an approach Algeria says is “irreversible.” Energy Shielding: Morocco says diesel reserves cover 48 days and gasoline over 40 as it braces for summer demand amid Strait of Hormuz-linked volatility. Digital & Jobs Push: The 3rd Morocco Gaming Expo opened in Rabat under Crown Prince Moulay El Hassan, spotlighting a fast-growing sector (40+ start-ups) aimed at creating thousands of jobs. Trade Talks: Bangladesh and Morocco are discussing a free trade agreement, with bilateral trade around $1.15bn and phosphate supply cooperation on the agenda. Mining Update: Aya Gold & Silver reported fresh high-grade drill results at Boumadine, supporting continued resource growth. Aviation Fuel Flows: Dangote’s jet fuel exports are expanding across Europe, with Morocco among destinations. Sports Spotlight: Morocco’s football visibility theme continues as Ghana’s U17 “Black Starlets” make five changes for a crucial South Africa clash in Morocco.

Energy Security Watch: Morocco’s diesel reserves can cover 48 days of demand, while gasoline stocks exceed 40 days, the energy minister told parliament as global tensions keep pressure on fuel markets. Heat Risk: An orange-level heatwave is forecast across multiple regions from Wednesday to Friday, with temperatures reaching 37°C–42°C in several provinces. Trade & Connectivity: Valenciaport is showcasing its North Africa links at Logismed Casablanca, aiming to deepen Morocco’s role as a gateway between Europe and Africa. Industry & Jobs: Morocco Gaming Expo’s 3rd edition in Rabat is pushing the video game sector toward 1% of global turnover by 2030/2032, with start-ups rising from just a few in 2022 to 40+ today. Maritime & Security: Spain’s Navantia is expected to deliver Morocco an offshore patrol vessel before August 2026 (likely July), with Morocco fitting armament after receipt. Human Rights Pressure: CONASADH urged the African Commission to condemn alleged illegal exploitation of Sahrawi natural resources.

Energy Corridor Expansion: Morocco is pushing to expand its major Sahara solar corridor aimed at exporting green power to Europe, reinforcing Rabat’s push to turn renewables into a trade and industrial lever. Maritime & Security: Morocco received its first warship from Spain in over 40 years—an Avante 1800-class patrol vessel—signaling deeper defense ties and fleet upgrades. Trade Digitisation: PortNet Commerce Extérieur is rolling out a single digital portal to connect customs, ports, ministries and trade actors, targeting faster import-export processing by reducing administrative fragmentation. Aviation Connectivity: Qatar Airways is expanding Africa routes with resumed services, higher frequencies, and a new July route to Sudan, including daily Marrakesh flights from 1 July. Cybercrime Crackdown: Interpol’s Operation Ramz arrested 201 people across 13 countries, with Morocco among participating jurisdictions. Aviation Costs Watch: Ryanair warns late booking could mean higher fares if Middle East-linked fuel costs stay elevated. Textiles & Industry Events: ITM 2026 (Istanbul, 9–13 June) is set to bring 1,000+ exhibitors from 55 countries, spotlighting textile machinery and new business deals.

Subsidy Shield: Morocco is injecting $2bn (20bn dirhams) in extra 2026 spending to protect key subsidies, absorb external shocks, and cover flood reconstruction—with 8bn dirhams earmarked for compensation (butane gas and transport). Aviation Pressure Test: Air Arabia’s Q1 profit fell 22% to AED278m as regional conflict squeezed airspace and capacity, even as passenger demand stayed resilient. Tourism Tech & Talent: Marrakech hosted a UN Tourism startup competition backed by Les Roches/SPARK, spotlighting AI/AR travel experiences and tech-enabled Moroccan gastronomy. Port & Mobility Upgrades: Adelte will build a new passenger boarding system for Port Tanger Ville (delivery in 2027), while road transport unions warn holiday peaks are worsening taxi pressure and call for stronger regulation and better public transport management. Industry Signals: Kenya manufacturers are uneasy as manufacturing’s GDP contribution slipped to 7.1% (from 7.3%), citing high costs and cheap imports.

Perfume Supply Chain Boost: IFF’s LMR Naturals will debut four new natural perfume extracts at SIMPPAR 2026 in Grasse—Lavandin Heart France, Armoise Heart Morocco, Ylang Heart Madagascar, and Geranium Heart Egypt—built on long-term sourcing and precision distillation. Morocco as Regional Power: A Stimson Center report frames Morocco as an emerging “middle power,” citing industrial expansion (auto, aerospace, electronics, batteries) plus renewable energy and growing diplomatic reach. Port Tech Upgrade: Adelte will design and install a new passenger boarding system for Port of Tanger Ville, targeting delivery in 2027 to improve cruise embarkation efficiency and comfort. Industry Investment Signal: China’s Boway plans a $220m alloy materials plant in Nador, aiming for construction start in Oct 2026 and completion by 2029. Sports with Morocco in the spotlight: CAF Champions League final momentum heads to Rabat after AS FAR vs Mamelodi Sundowns first-leg drama, with Sundowns holding a 1-0 edge.

Strategic Spotlight: The Stimson Center again puts Morocco in the fast lane, calling it an emerging “strategic middle power” linking Europe, Africa and the Arab world, with momentum in industry, logistics and energy. SME Policy Pushback: Morocco’s new TPME charter is drawing heat from business groups, who say it will reach only about 0.02% of firms—far below the scale of the country’s small-business base. Energy & FX Watch: Bank Al-Maghrib reports the dirham strengthened slightly versus the euro and dollar, while reserves and weekly market moves stay in focus for investors. Fuel Market Tension: A fuel-station owners’ federation accuses distributors of shorting diesel deliveries, filing complaints over alleged quantity fraud. Security & Tech Angle: Morocco is also showing up in regional defense and AI conversations, including counter-drone testing during African Lion 26 and an AI “future of work” conference in Casablanca.

Fuel Sector Tension: Morocco’s fuel station owners’ federation says diesel deliveries are coming up short—citing a May 15 unloading deficit of 150+ liters—and has filed a complaint, warning the issue is spreading and squeezing already tight margins. Energy & Security: UAE officials condemned a drone strike near the Barakah nuclear plant, calling it a “dangerous escalation,” while Morocco’s name also surfaces in regional security coordination as foreign ministers discuss repercussions. Business & Education: IMKAN Misr signed an MoU with the Arab Academy for Science to allocate 45 feddans in Alburouj for a new campus—another push to link real estate development with training and services. AI Momentum: Morocco is hosting an AI-focused “future of work” conference in Casablanca, positioning the city as a regional AI hub. Transport & Markets: Bank Al-Maghrib reports the dirham strengthened slightly vs euro and dollar, while stock moves were mixed. Culture: Three Moroccan films head to the Rotterdam Arab Film Festival, spotlighting Amazigh identity and migrant labor stories. Sports (Morocco-linked): CAF Champions League second leg in Rabat is set after Sundowns’ 1-0 first-leg win, with confidence despite missed chances.

SME Policy Pushback: Morocco’s new TPME charter is drawing sharp criticism after the confederation warned it would reach only about 0.02% of businesses, arguing the plan targets too few firms versus the scale of the SME ecosystem. FX & Markets: The dirham strengthened against both the euro and the dollar in Bank Al-Maghrib’s latest weekly indicators, while the Casablanca stock index edged down and mining shares jumped. Energy Pressure: Morocco’s trade deficit surged ~24% in Q1 2026 to about 88bn dirhams, with imports rising faster and the Iran–Hormuz shock lifting energy-related costs; gasoline also ticked up +0.5 dirham/liter while diesel held steady. AI & Work: Casablanca is set to host an AI “future of work” conference later this month, positioning the city as a regional AI hub. Security & Training: U.S. forces continued counter-drone testing during African Lion 26, while the search around the Cap Draa training area concluded with recovery of the missing soldiers.

AI & Workforce: Morocco is hosting “AI Casablanca – Human Work in the AI Era” on May 23, aiming to turn the city into a regional hub for AI-led business and job transformation. Defense & Security: U.S. forces are testing the Bumblebee counter-drone system during African Lion 26 in Morocco as FPV threats keep evolving. FX & Markets: Bank Al-Maghrib says the dirham strengthened vs the euro and dollar in the May 7–13 week, with reserves at 468.6bn dirhams. Energy Pressure: Morocco maintains a cautious dam release policy despite improved rainfall, while gasoline rose 0.5 dirham and diesel stayed flat amid Strait of Hormuz uncertainty. Trade & Logistics: The trade deficit jumped about 24% in Q1 as energy import costs rose, and Casablanca port congestion is delaying imports with 60+ ships waiting offshore. Regional Energy Deal: Morocco and Nigeria are targeting a late-2026 intergovernmental agreement for the Atlantic gas pipeline. Tourism Demand: Russian bookings for summer 2026 to Morocco are up ~38%, led by Agadir.

Fuel Shock Watch: Morocco’s gasoline rose by 0.5 dirham per liter while diesel stayed flat, as global oil volatility and Strait of Hormuz tensions keep pressure on pump prices. Budget Shield: Rabat is set to add 20bn dirhams to the 2026 budget to cushion households from energy-linked costs, targeting cooking gas, electricity and public transport. Trade Strain: Morocco’s Q1 trade deficit jumped about 24% to roughly 88bn dirhams, with higher import bills—especially from the Iran-linked energy shock—outpacing exports. Port Bottleneck: Casablanca is seeing severe congestion, with 60+ ships waiting offshore and grain carriers driving delays of 8–10 days (sometimes longer). Regional Links: Morocco and Liberia are stepping up cooperation on water, agriculture, maritime ties and cultural diplomacy ahead of Morocco’s National Day. Security Update: The U.S. Army recovered the second missing soldier from African Lion 26 in Morocco’s Cap Draa area.

Port Bottleneck: Casablanca Port is clogged again, with Hespress AR citing 60+ ships waiting offshore; grain carriers dominate (about 30 vessels), and delays run 8–10 days on average, with some ships stuck for up to a month—linked to weather disruptions since November and knock-on effects from Tangier Med. Energy Shielding: Morocco will add MAD 20bn ($2bn) to the 2026 budget to cushion households from Middle East-driven energy shocks, keeping support for cooking gas, electricity and transport amid heavy import dependence. Diplomatic Push: Rabat is stepping up ties with Liberia ahead of Morocco’s National Day, focusing on water security, agricultural transformation, maritime cooperation and cultural diplomacy. Business & Politics: Coalition parties are lining up ministers for the Sept. 23 election campaign, signaling a more competitive parliamentary race. Regional Context: The same Middle East disruption is also hitting Africa’s fuel and fertilizer supply chains, with Morocco named among countries feeling the pressure.

Budget Shock Buffer: Morocco plans to add 20bn dirhams (~$2bn) to its 2026 budget to cushion Middle East conflict-driven costs, including energy price support, cooking gas, transport and electricity subsidies, and flood-related spending. Business Lobby Reset: In Casablanca, employers federation CGEM elected Mehdi Tazi to lead through the 2030 push, with a focus on competitiveness, lowering structural business costs, and shifting from prior authorization to post-control. Aviation Security Upgrade: The US and Morocco signed an agreement to expand sensitive aviation security information sharing, tightening coordination on threats to civil aviation and critical infrastructure. Airline Pressure, Demand Resilience: Air Arabia reported Q1 2026 net profit of Dh278m (-22%) as regional conflict cut capacity, but passenger demand held (4.7m; load factor 86%). Ports & Trade Momentum: A study says the Red Sea crisis boosted Tangier Med’s resilience, with losses under 3% versus bigger hits elsewhere.