Rabat – Africa has the huge potential to redefine the pattern of global trade and economic growth, yet many of its economies are still vulnerable to external shocks.
The 2024 Economic Development in Africa Report published by the UN Trade and Development (UNCTAD) shows how targeted reforms and investment could make economies more resilient.
For Morocco, the report notes both challenges and opportunities.
As one of Africa’s largest service exporters, it is also an important player in regional trade, but still suffers from infrastructure deficits and trade barriers.
Strong regulatory frameworks and diversified economies place Morocco among the continent’s most resilient economies, but strategic reforms are still needed to spur further growth.
Morocco’s economic outlook
Morocco features among the five top services-exporting economies in Africa, with an average export value of US$16.2 billion per year for 2019-2021.
The pandemic exposed the fragility of services-dependent economies, including Morocco, Egypt, South Africa, and Tunisia, as global disruptions severely impacted tourism, transport, and other service industries.
Moreover, infrastructure is also one of the main determinants of trade efficiency.
The report puts Morocco among Africa’s better-performing nations regarding trade logistics, but it adds that non-tariff barriers still impede intra-African trade.
Regulatory hurdles and trade rules not associated with tariffs are constricting regional trade three times as much as customs duties, placing limits on access to African markets.
Despite these challenges, Morocco boasts one of the most conducive regulatory environments on the continent.
Morocco, together with Botswana, Cabo Verde, Mauritius, and South Africa, showed more resilience to trade risks because of economic diversification, political stability, and connectivity.
The report also delineates various aspects where Morocco and other African economies could take steps toward better resilience and growth to address some of the constraints such as the diversification of exports, improving infrastructure, and boosting SMEs.
Morocco’s position in regional trade
The African Continental Free Trade Area (AfCFTA) represents one of the important opportunities for economic expansion, estimated at a market value of $3.4 trillion.
In the report, Morocco’s trade agreements and investment treaties reflect a long-term commitment to bolstering economic ties within Africa:
– 76 total bilateral investment treaties
– 12 treaties with investment provisions
– 51 bilateral investment treaties in force
– 9 treaties with investment provisions in force
A future built on regional collaboration
Morocco’s economic strength lies in its ability to adapt to global and regional challenges.
While the country faces risks related to connectivity and economic dependence, its investment in infrastructure, trade reforms, and regional cooperation could position it as a leader in Africa’s economic transformation.
The UNCTAD report outlines a pathway for Morocco and other African countries to convert vulnerabilities into opportunities.
Given the right policies, Morocco has the potential to play a key role in the future of the African economy.
Read Also: Report: Morocco’s Economy Thriving Amid Global Headwinds
