France remains Morocco’s leading economic and financial partner despite growing competition, particularly from non-European players such as China and the United States. And the upcoming visit of French President Emmanuel Macron to Morocco will certainly boost trade between the two countries.
Trade jumped 24% in 2022, driven by an increase in French exports, particularly cereals, according to a report from the French Treasury on the evolution of bilateral relations published in December 2023. Thanks to this increase in exports, France was able to reduce its bilateral deficit with Morocco by 72% compared to 2021. This significant recovery places France in second place among the Kingdom’s suppliers, just behind Spain. The rise of Moroccan industrial ecosystems, particularly in the automotive and aeronautics sectors, is also behind this positive dynamic.
French imports from Morocco have grown twice as fast as exports over the past decade. However, the trade balance in value added is slightly tilted in France’s favor.
France remains the leading foreign investor in Morocco, with nearly 31% of the total stock of foreign direct investment (FDI) in the kingdom. The presence of many CAC 40 flagships and nearly 1,300 French subsidiaries in Morocco consolidates this positioning and confirms the country’s central role in the African strategy of French companies. For its part, Morocco is making France a preferred destination for its capital by investing more and more in the country.
According to the Treasury report, the French Development Agency (AFD) remains a key player in bilateral cooperation. With an exposure of more than 3.7 billion euros, mainly in projects related to the environment, transport, and energy transition, Morocco is the world’s leading recipient of AFD financing. This institutional support strengthens ties between the two countries and underlines the importance of this cooperation in a broader framework, including the modernization of Moroccan infrastructure, notes the French Treasury report.
The French president is expected to arrive in Rabat on October 28. This two-day state visit could provide a boost to trade between Morocco and France. Emmanuel Macron will advocate for Alstom for the Casablanca-Marrakech high-speed rail line market, and will notably try to sell Airbuses to Morocco.