AGP Executive Report

Automotive Manufacturing: Renault says Morocco is now its second-largest global production base, with 394,000+ vehicles made in 2025 across Tangier and Casablanca (Somaca), and 82% exported to 63 destinations. Higher Education & Skills: Morocco is integrating Arabic into university modules for science, engineering and medicine, requiring at least one Arabic module in disciplines long taught in foreign languages. Energy & Infrastructure: The World Bank approved $265m for Morocco hydropower pumped-storage, adding to a push for cleaner, flexible power. Payments & Retail Finance: Cash still dominates Morocco’s payments—GlobalData estimates ~83.7% of payment volume in 2026—driven by high unbanked rates, even as inclusion efforts expand. Regional Investment: Laayoune-Sakia El Hamra promoted opportunities in renewables, fisheries, blue economy, manufacturing, logistics and tourism at a Morocco–France forum in Paris. Sports & Industry Link: Morocco’s World Cup run continues to draw attention, including coverage of penalty preparation and Morocco’s knockout success over the Netherlands.

Automotive & Industrial Strategy: Stellantis says Morocco is a central pillar of its “FaSTLAne 2030” plan, targeting +40% regional revenue by 2030 and relying on Morocco and Turkey production bases (about 800,000 vehicles capacity) to scale and improve cost competitiveness. Energy Investments: The World Bank approved $265m for Morocco’s Ifahsa 300MW pumped-storage hydropower project near Chefchaouen, aimed at stabilizing the grid as Morocco adds at least 1GW of solar and wind, with expected private investment of about $1bn. Renewables at Tanger Med: Morocco’s Africa-largest floating PV plant (13MW) has started operating on Oued Rmel Dam reservoir to power Tanger Med industrial and port operations, with tailored anchoring for large water-level swings. Trade & Exports Pressure: Morocco’s textile and leather exports fell 9.1% by end-May 2026, with ready-made garments down 8.2% and knitwear down 11.8%, as labor shortages (around 16,000 machine-operator posts) increasingly constrain output. Trade Balance Watch: Morocco’s January–May trade deficit widened 20.8% to 159bn dirhams, driven by higher energy and equipment imports, while automotive exports rose to 77bn dirhams (+16%). Bilateral Deals: Morocco and South Korea are pushing to finalize a Comprehensive Economic Partnership Agreement, with talks aiming for a preliminary understanding by August and completion before year-end, including investment and supply-chain security.

Clean Energy Finance: The World Bank approved a $265m loan for Morocco’s Ifahsa Pumped Hydropower Storage Project near Chefchaouen, a 300MW “grid battery” meant to store excess solar and wind and release power at peak demand—supporting integration of at least 1GW renewables and targeting about 820 direct jobs per year during construction. Renewables Build-Out: In parallel, H2air PX says it has completed a 13MW floating PV plant on the Oued Rmel Dam reservoir near Ksar Sghir, supplying electricity to Tanger Med’s industrial and port operations. Industrial Expansion: Amiblu Maroc inaugurated a third GRP piping production line in Nouaceur (a $17m investment), lifting capacity to 660km of DN800-class piping annually and expanding fittings output by 25%, with a planned GRP Academy in 2027. Logistics & Trade: Hapag-Lloyd’s terminal arm is negotiating investments in Tangier Med as it expands its port portfolio toward 30 terminals by 2030. Maritime Resources Watch: New research reports phosphate concentrations on a disputed Atlantic seamount (Mount Tropic) that could matter for Morocco’s fertilizer supply chain.

Transport Finance: The European Investment Bank approved €365m for Morocco to strengthen motorway and rail resilience, including a €300m loan for highways and €65m for ONCF with a €15m EU climate-resilience grant. Energy & Industry: Nearly 10 firms are active in Morocco’s oil and gas exploration under 40 offshore permits, 9 onshore permits and 4 exploitation concessions, while the ministry flags a reform push for ONHYM to unlock more from the current framework. Fuel Costs: Morocco’s fuel prices fell again this week, with diesel down 97 centimes and petrol down 46 centimes per liter, reviving debate over the downstream pricing mechanism. Automotive Manufacturing: BENTELER opened a smart factory in Kenitra’s Atlantic Free Zone, investing over $42m and creating 300+ jobs to produce key vehicle components for major OEMs. Digital Media Economy: Streaming is surging in Morocco—92% internet penetration and massive social followings—but monetization still struggles against free-content habits and piracy. Legal/Dealmaking Spotlight: Africa Business+’ 100 Legal Powerlist highlights mining, infrastructure and energy as top deal drivers, with Morocco among the active capital jurisdictions.

Morocco’s World Cup breakthrough: Ismael Saibari fired the winner in the Netherlands’ earliest exit of the 2026 tournament as Morocco beat the Dutch 3-2 on penalties after a 1-1 draw, with Yassine Bounou starring in the shootout. Transport investment: The EIB agreed to lend Morocco €350m for railway rehabilitation and motorway upgrades, plus a €15m EU grant, targeting safer, more resilient transport networks. Fertilizer trade shockwave: In the US, President Trump temporarily suspended some phosphate fertilizer duties on Morocco for up to eight months, aiming to cut input costs for farmers (USDA estimates up to $1.8bn in savings). Energy policy pressure: A Moroccan fuel industry union urged lawmakers to revive rejected bills on fuel price regulation and the state takeover of the bankrupt Samir refinery, arguing they’re key to energy security and lower consumer costs. Tech-for-energy push: A robotics and AI expert called on African leaders to back automation and intelligent systems to accelerate energy transformation and industrial development, speaking in Marrakech. Human development spotlight: HRH Princess Lalla Asmaa chaired the Lalla Asmaa Foundation’s 2025-2026 end-of-school-year ceremony in Rabat for deaf and hard-of-hearing children.

Fertilizer Trade Relief: Trump temporarily suspended anti-dumping and countervailing duties on Moroccan phosphate fertilizer for up to eight months, citing a U.S. fertilizer supply emergency and aiming to cut input costs; U.S. estimates point to about a 22% price reduction and $1.82bn in annual savings for farmers. Energy Security Push: Morocco is investing 6bn dirhams to expand fuel storage capacity to strengthen supply resilience amid continued lack of domestic refining. Port & Finance Backing: The European Investment Bank plans to channel over €700m into Morocco in 2026, with priorities spanning energy security, innovation, transport modernization, and education. Auto Industry Support: Attijariwafa Bank and AMICA signed a strategic partnership to boost financing and services for Morocco’s automotive ecosystem. Aerospace Expansion: Safran Aerosystems inaugurated an expanded Morocco plant in Tiflet to scale production for aerospace components. Digital & AI Growth: Oracle opened a second Morocco R&D center in Agadir to expand AI and cloud innovation. Textile & Manufacturing Signals: MIC launched an elastic coiled silk yarn and reported revenue growth, while Morocco’s industrial momentum also shows up in new licensing deals like RAK Ceramics’ Roberto Cavalli tie-up. World Cup Spotlight (Business Angle): Morocco’s win over the Netherlands in the Round of 16 set up a Canada clash, keeping the country in the global spotlight.

Fertilizer Trade Shock: The U.S. temporarily suspended 16–17% anti-dumping and countervailing duties on Moroccan phosphate fertilizer for up to eight months, citing a national emergency over food supply and fertilizer shortages—highlighting Morocco’s leverage as the source of most global phosphate rock and a key player via OCP. Port Modernization: JICA is set to assess how Morocco’s ports can become more efficient, greener and more secure, with a study running Sep 2026–Feb 2027 focused on Tanger Med and Casablanca, digital upgrades and carbon cuts. Logistics & Industry Linkages: A new look at Morocco’s Atlantic role frames Tanger Med as part of a wider Africa gateway strategy, as shipping reroutes reshape demand for reliable transhipment hubs. Luxury Manufacturing Deal: Roberto Cavalli signed an exclusive licensing agreement with RAK Ceramics to develop and distribute branded ceramic tiles, sanitaryware and faucets across Morocco and the wider Middle East. Defense Cooperation: Kenya and Morocco agreed to deepen joint air force training and professional exchanges after Nairobi talks. World Cup Business Angle: Morocco’s penalty win over the Netherlands sends it to the Round of 16, boosting visibility for the country’s sports brand at a key moment for tourism and media attention.

Macroeconomy: Morocco’s High Commission for Planning says Q1 2026 GDP growth held at 4.6%, with domestic demand the main driver as household consumption rebounds and agriculture offsets a slowdown in non-agricultural activity. Fertilizers & food security: OCP Nutricrops renewed its 2026-2027 phosphate fertilizer supply deal with Bangladesh’s BADC, with up to 1.3m tonnes planned, alongside farmer-training support via OCP Foundation. Film & creative industries: Morocco has started building an International Cinema City in Ouarzazate, a “one-stop shop” for production, post-production, training and film tourism, as foreign shoots hit record levels. Energy & industry partnerships: OCP’s fertilizer exports continue to expand regionally, while Morocco’s broader investor appeal gets a boost from EIB President Nadia Calviño, citing reforms and financing access. Fashion & exports: The Audace initiative is helping Moroccan designers scale internationally, with Destination Créative Marrakech linking brands to buyers and retailers. Local development pressure: Midelt residents staged protests demanding better roads and basic services for isolated mountain communes. Trade & logistics: Casablanca Port’s round-the-clock operations helped cut container waiting times to 48 hours.

Morocco-Linked Industry & Trade: A Reuters report says Universal Music Group’s Bravado shipped unsold T-shirts to Tangier, where Moroccan textile manufacturer Hallotex upcycled them into new recycled-cotton blanks for European tour merch—an example of circular manufacturing tied to global entertainment demand. Agriculture & Food Supply Chains: Morocco’s beekeepers are preparing to move hives to summer pastures as temperatures climb, highlighting how heat is reshaping seasonal planning for rural producers. Port & Logistics: Casablanca Port’s crisis has eased, with round-the-clock operations cutting container waiting times to 48 hours—good news for exporters watching delivery reliability. Regional Policy & Governance: Morocco hosted a UCLG World Congress session where Kaduna’s governor Uba Sani was praised for open-government reforms, including citizen participation and agriculture-focused spending—relevant for how public investment reaches local delivery. Health & Food Safety: Tests found arsenic and cobalt in Moroccan food pottery, raising concerns for consumer safety and quality control in everyday goods.

Food Safety in Summer Heat: Moroccan consumer groups are warning people to avoid unregulated street food and improperly stored drinks as temperatures rise, saying heat accelerates bacterial growth and increases food poisoning risks—especially for children and older adults. Agribusiness & Climate Adaptation: Moroccan beekeepers are starting to move hives toward summer pastures as seasonal heat climbs, with industry leaders monitoring conditions to protect colonies and honey output. Morocco’s International Education Push: Morocco is offering 2026–2027 scholarships for Grenadian students at Al Akhawayn University in Ifrane, covering travel, accommodation, meals, insurance, and a monthly stipend. Industry & Finance Signals: Morocco’s ONHYM is being restructured to attract private and foreign capital, linked to plans around the Africa-Atlantic gas pipeline. Trade & Logistics: Casablanca Port’s container delays are easing after around-the-clock operations cut waiting times to about 48 hours. Public Health Risk Beyond Borders: A study flags that bovine tuberculosis may be spreading across the Middle East and North Africa via cattle and raw milk, with surveillance gaps potentially masking the true scale.

EIB Financing Push: European Investment Bank president Nadia Calviño visits Morocco June 29–July 1, with talks on two EU-backed transport-climate financing operations aimed at boosting resilience and safety. Time Policy Shift: Morocco ends GMT+1 and returns to Greenwich Mean Time after summer, reopening the wider debate on seasonal clock changes in Europe. Industrial Resources Lens: A new global minerals-reserves map spotlights Morocco’s phosphate dominance (about 69% of world reserves) and China’s rare-earth leverage, underlining how inputs for fertilizers and high-tech supply chains shape geopolitics. AI Infrastructure Sovereignty: At an AU meeting in Tangier, ministers discussed scaling African-owned AI infrastructure and reducing dependence on foreign cloud and limited data-center capacity. Agriculture & Food: Tests found arsenic and cobalt in Moroccan food pottery, raising new food-safety questions for local producers. Port & Logistics: Casablanca Port’s crisis eases as round-the-clock operations cut container waiting times to 48 hours. Aviation Demand: Morocco airports added 1 million passengers as regional conflict disrupts eastern routes. Culture-to-Industry: Morocco’s animation sector gets €1m support from TV5Monde, backing creative production capacity. World Cup Spillover (Soft Economy): Morocco’s World Cup-related tourism and media visibility continues to feed demand expectations ahead of the 2030 co-hosting push.

EIB Financing Push: EIB President Nadia Calviño will visit Morocco June 29–July 1, meeting ministers and announcing two EU-backed deals to boost transport network safety and climate resilience, as the bank marks 20 years in the country. Film & Jobs Boost: Morocco has launched a MAD 240 million international film production complex in Ouarzazate, adding studios, digital labs, editing, training and hotels to plug a post-production gap and support thousands of jobs. Border Trade Security: A U.S. delegation visited El Guergarate to discuss border security and anti-trafficking cooperation, highlighting the crossing’s role in trans-Saharan trade for fresh produce and manufactured goods. Monetary Outlook: Bank Al-Maghrib is expected to keep its 2.25% rate through end-2026 as energy costs could lift imported inflation, with easing more likely in 2027 if oil prices cool. AI Sovereignty Debate: At an AU meeting in Tangier, ministers pushed for African-owned AI infrastructure and digital sovereignty, citing low data center capacity and reliance on foreign cloud providers. Environment Enforcement Gap: A global study finds plastic bags still among the most common beach litter in Morocco despite the ban, pointing to weak enforcement and the need to cut production and improve reuse.

Port & Logistics: Casablanca Port’s crisis eased as round-the-clock operations cut container waiting times to 48 hours. Industrial Policy: Morocco restructures ONHYM into a joint-stock company to attract private and foreign capital for the $25bn Africa-Atlantic Gas Pipeline. Energy & Industry: Morocco elected unanimously as Commissioner of the African Commission on Nuclear Energy (AFCONE) for a three-year term, highlighting nuclear tech for healthcare and agriculture amid water stress. Food Safety: Morocco’s handicrafts authorities warned potters to stop using tar on food and drink containers after tests found toxic metals like arsenic and cobalt; a broader compliance programme is planned for domestic and export markets. Trade & Supply Chains: A sulfur shortage is raising the risk of fertilizer production halts, with Morocco’s OCP Group reporting inventories down about 40%. Textiles: Morocco’s animation industry received €1 mln support from TV5Monde. Tourism & Payments: Mastercard launched “Priceless Africa” on Priceless.com, adding curated travel experiences across Morocco and other African markets.

Port & Logistics: Casablanca’s port congestion is easing fast. After the governor moved operations to continuous 24-hour work and temporarily opened Gate 4 overnight, container ship processing times reportedly dropped from 6–10 days to about 48–72 hours, with only five container vessels berthed as of 23 June and more sailings expected through early July. Maritime Security: Morocco and the UK ran a joint diving search-and-rescue drill at Ksar Sghir Naval Base, using handheld sonar to locate a simulated missing person. Aviation & Energy Infrastructure: Morocco is converting ONHYM into a joint-stock company to support the $25bn Africa-Atlantic Gas Pipeline. Digital Sovereignty: At UN Open Source Week, ministers and technologists including Morocco pushed open standards and open-source tech to reduce dependence on US cloud giants. Media & Creative Industries: TV5MONDE will fund 10 Moroccan animated series with €1m, produced in French and aimed at youth audiences. Justice & Governance: A Casablanca court sentenced 29 people in a major drug trafficking and corruption case, including politicians and sports figures, with fines ordered in the hundreds of millions. Time Policy: Morocco plans to end GMT+1 and return to legal GMT on 20 September.

Energy & Industry Reform: Morocco has converted ONHYM into a joint-stock company to boost flexibility for upstream projects, including support for the Africa-Atlantic Gas Pipeline, with the state keeping full ownership and a path to gradual private capital. Mining & Batteries: London-listed Savannah Resources is pursuing a secondary listing in Lisbon or Australia to fund Portugal’s Barroso lithium project, targeting production in late 2028. Logistics & Manufacturing: Redspher’s Flash is expanding its premium freight-forwarding partner model to serve time-critical demand tied to South Korea’s semiconductor and EV battery supply chains. Digital Adoption: A GSMA report says Africa’s mobile broadband coverage is near universal, but internet use lags—only 9% of Africans remain outside coverage, while 63% live within coverage yet don’t use mobile internet. Morocco Time Policy: Morocco will permanently return to GMT, ending daylight saving time changes, with the shift set for end of next summer 2026. AI Governance: Coverage highlights the push for African control over AI infrastructure as foreign data centres and cloud services expand across the continent.

Aerospace Investment: Safran Electronics & Defense broke ground on a 350 million dirham expansion at its Nouaceur site, adding 17,000 m², 15 new production lines and 500 jobs over five years—another vote of confidence in Morocco’s aeronautics ecosystem. Trade & Agribusiness: Morocco’s mandarin exports to the UK surged to 71,600 tons (over £60m) in Oct 2025–Apr 2026, nearly 20% up year-on-year, as Brexit-era phytosanitary rules helped Morocco gain ground on Spain. Intra-African Integration: Afreximbank reports Morocco’s trade with African partners hit $9.5bn in 2025, while intra-African commerce rose 5.5% to $213.8bn—highlighting Morocco’s push into higher-value industrial exports. Port & Customs Digitalization: PortNet and ONSSA launched a joint digital platform to modernize import clearance, aiming to speed up procedures for goods entering Morocco. Skills for Tourism Demand: Rabat rolled out free English training for about 22,000 taxi drivers ahead of major events, including AFCON and the 2030 World Cup. Time Policy: Morocco will return to standard GMT after summer, ending the long-running GMT+1 daylight-saving system.