Star Africa
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Morocco has emerged as the third most important recipient of Foreign Direct Investment (FDI) in Africa in 2014, with 67 projects, according to a study on the attractiveness of African countries published by Ernst & Young.
Morocco is once again doing better than its neighbors Algeria, Tunisia and Libya which have fallen out of the rankings. This can be explained by a sharp increase among the French companies which have exceeded their Spanish rivals to become leaders in the Moroccan market, in addition to financial services, the main drivers of this foreign investment in Morocco, which “benefits from its historic ties with the kingdom and proximity of Western Europe”, the study notes.
The study also highlights the “proactive approach” by Morocco in terms of foreign investment, due to the fact that it offers “availability of skilled workers, at lower wages than in the international market”.
Added to this, a “stable” business environment, combined with good air connections to many other African countries and the progress of Moroccan banks in Africa. Royal Air Morocco serves over 30 major African cities, said the study, according to which the Kingdom “is positioned as a bridge” between a “fast growing” Africa and two great poles of the global economy; USA and Europe.
According to the “Attractiveness of Africa for 2015” conducted by the financial audit firm, and mainly based on data collected in 2014, investments in Africa carried out that year represented a total value of $128 billion and have created 188,000 new jobs. Foreign Direct Investment (FDI) made in Africa have fallen by 8.4% in number but increased by 136% in value to $128 billion.
Regarding countries that mostly invest in Africa, the study highlighted the rapid growth of the UAE which, in terms of projects, ranked fourth after the United States, South Africa and the United Kingdom but the Gulf nation is leader in terms of invested amounts.
In terms of sectors that attract the most FDI in Africa, the study suggests mining even though it declined in favor of the service sector. The real estate, tourism, construction, telecommunications and finance are sectors that secure the most FDI in Africa.
According to the study, North Africa is the only region where FDI is clearly increasing in number and amounts invested with 165 projects in 2014, that being 22.5% more than in 2013 and an increase in value of 51.1%.
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