_morocco and germany: transfer of know-how and technology
Economic and trade relations between Germany and Morocco existed for almost 70 years. The importance of Morocco as a producer of sustainable hydrogen will grow. The kingdom is facing extensive modernization and is becoming increasingly attractive for investment.
Transfer of know-how and technology
Germany and Morocco have long been strategic economic partners. They have maintained diplomatic relations since 1956. Over the past decade, the number of German companies in the westernmost Maghreb country has doubled: there are now nearly 300 companies with German capital in Morocco (with a focus on Casablanca and Tangier). In 2021, Germany imported goods worth 1.6 billion euros from Morocco and exported goods worth 2.2 billion euros. The most important sectors are the automotive and aviation industries as well as the future-oriented expansion of renewable energies and the food industry. In their German Moroccan joint declaration of Aug. 25, 2022, both countries reiterated their desire to strengthen and expand bilateral economic and trade relations. The goal, they said, is the genuine transfer of know-how and technology.
Renewable energies: green hydrogen from the desert
The renewable energy sector has stood out in recent years. On the one hand, the Moroccan government wants to increase the share of renewable energies to around 52 percent by 2030. This makes the kingdom a regional pioneer. Secondly, the global market for hydrogen technologies is already developing dynamically. This offers good growth opportunities for German companies. The cooperation agreement concluded in 2022, which commits Germany to promote the production of green hydrogen in Morocco, will contribute to this.
Investment country Morocco: Modern and competitive
Morocco is considered the most competitive country in North Africa and is the second most attractive investment location on the continent (behind South Africa). It scores for its proximity to Europe (potential for nearshoring location), first-class infrastructure and efficient logistics, and favorable production factors. To sum it up, the country is ideal for integrating modern production structures into European value chains.
The verge of comprehensive modernization and the deepened partnership with Germany promises a rapid upswing in economics. And thus holds enormous potential for German companies as a gateway to the African continent.
Business friendly legal system
The Moroccan legal system is french-influenced. The constant adaptation of the laws to European standards demonstrates the efforts to create a modern and business-friendly legal system.
Expansion of the free trade area
In 2000, the Euro-Mediterranean Association Agreement between the EU and Morocco entered into force and created a free trade area. Negotiations on a deep and comprehensive free trade area between the EU and Morocco were launched on March 1, 2013.
Contact:
Mamdouh Al Tajjar, Business Consultant, Associate.
altajjar@clayston.com