AGP Executive Report

Nuclear Safety: Qatar condemned the reported drone attack on the UAE’s Barakah nuclear plant as a violation of international law and nuclear safety, urging serious regional concern after IAEA warnings that attacks on peaceful nuclear facilities are “unacceptable.” Higher Education: UPF in Fez launched the American International Institute with Arizona State University and Cintana Education, offering U.S. double-degree programs and planning events in September in Fez and Rabat. Housing & Finance: Morocco will host Shelter Afrique Development Bank’s 45th AGM in Rabat (09–11 June), focused on financing inclusive, green, resilient urban development and affordable housing. Tourism & Cities: Morocco’s tourism boom continues, with 2025 arrivals hitting a record 19.8 million (+14%), reinforcing demand for travel and city experiences. Industry & Energy Context: Morocco’s solar push topped 1 gigawatt for the first time, adding momentum to the renewable transition. Local Governance: Protests in central Morocco’s mountain communities (Béni Mellal/Azilal) demand road repairs, drinking water, mobile connectivity, and simpler building permits, highlighting persistent rural development gaps. Sports Business Note: FIFA asked about 60 fans to pay for World Cup tickets mistakenly issued free due to a checkout error, with seats reserved pending payment.

Environment & Chemicals: On World Environment Day, IPEN is pushing Morocco and other countries to back Rotterdam Convention action to control lead chromates in paint, using the Prior Informed Consent process to curb toxic lead exposure for children. Tourism Momentum: Morocco may hit its 26 million-visitor target two years early, with 2025 already at 19.8 million and growth driven by air connectivity, marketing and product upgrades. Pharma Regulation: Morocco is set to overhaul marketing authorizations for medicines, with reforms aimed at speeding up generic access by tackling data exclusivity delays. Macroeconomic Outlook: EBRD expects Morocco’s growth to ease to 4.4% in 2026 and 4.0% in 2027, supported by tourism and remittances but pressured by a wider trade deficit. Renewables Milestone: Morocco’s solar capacity has surpassed 1 GW for the first time, reaching 1.09 GW by end-2025 as the renewable push accelerates.

Renewables & Climate Finance: The UN highlighted Morocco’s solar push, praising the Ouarzazate “NOOR” complex as a scalable model for clean power and urging African countries to turn climate plans into green jobs and investment. Auto Manufacturing: Stellantis plans to sell Fiat’s new Grizzly SUV and Grizzly Fastback across Europe, the Middle East and Africa, with production at Stellantis’ Kenitra plant in Morocco—deepening Morocco’s role in the group’s supply chain. Logistics & Shipping: GNV (MSC Group) christened a new vessel in Tangier and expanded ferry links between Morocco, Spain and Italy, positioning Morocco as a key Mediterranean transport gateway ahead of the 2030 World Cup. Agrifood & Trade Pressure: France’s move to cut cadmium limits in fertilisers is drawing attention to phosphate supply chains tied to Morocco, while U.S. forced-labour tariff proposals could also raise trade friction for Morocco-linked exports. Mining: Xtract Resources secured a 10-year mining licence for its antimony project in Morocco, as the country continues to advance strategic minerals. Sports Infrastructure Finance: A piece on Morocco’s PPP approach argues it offers lessons for other countries looking to fund and maintain sports facilities sustainably.

Forced-Labour Tariffs: The U.S. Trade Representative proposed 12.5% tariffs on imports from Morocco and seven other African economies, citing failures to ban and enforce forced-labour import prohibitions under Section 301—an immediate risk for exporters tied to U.S. supply chains. Mining & Processing: Xtract Resources secured a 10-year mining license for its Amghas antimony project in northwest Morocco and is relocating processing infrastructure from Casablanca, aiming for near-term antimony concentrate production. Green Hydrogen Push: Rabat’s “Offre Maroc” framework targets up to 1 million hectares for hydrogen projects, positioning Morocco as a future green hydrogen hub for Europe, while competition and water risks remain key constraints. Automotive & Industrial Momentum: EU concerns are rising as Chinese investment accelerates in Morocco’s auto sector, even as Morocco continues to strengthen its industrial standing in Africa. Education Mobility: Morocco’s education ministry opened applications for free round-trip flights for CPGE students heading to oral exams in France for major engineering and business school competitions. Logistics Pressure: Reports highlight eight soft wheat vessels waiting to unload at Casablanca amid logistics bottlenecks, underscoring pressure on food supply chains.

US–Morocco Trade Pressure: The U.S. proposed new Section 301 tariffs after finding Morocco failed to effectively enforce a ban on forced-labor imports, with an extra 12.5% duty on many goods if approved. Morocco–UK Deal Push: Rabat and London aim to double bilateral trade and investment, with UK firms eyeing World Cup-linked opportunities in transport, security, logistics, hospitality and infrastructure. Critical Minerals: Xtract Resources secured a 10-year mining license for its Amghas antimony project and is relocating processing assets toward near-term production. Green Hydrogen Race: Morocco’s “Offre Maroc” hydrogen framework targets up to 1 million hectares for projects, positioning Rabat for EU-linked export demand while flagging water and competition risks. Industrial Positioning: Morocco is highlighted as Africa’s top industrial economy in recent AfDB-linked reporting. Heritage & Water Tech: A June 9 scientific initiative at UM6P will launch preservation work for the 12th-century Almohad cisterns of Sidi Bouathmane.

Port & Food Security: Casablanca port congestion is delaying unloading of soft wheat and other imports, with about eight soft wheat vessels anchored and additional durum wheat and corn/animal feed ships waiting; operators plan longer unloading hours until 10 p.m. to limit Eid-related logistics strain and protect prices. Auto & Trade Policy: Chinese automakers are accelerating investment in Morocco’s Tangier and Kenitra industrial zones, raising EU concerns about supply-chain origin rules and potential tariff circumvention via Morocco’s trade deals. Industrialization Benchmark: Morocco has overtaken South Africa as Africa’s top industrialized economy in AfDB’s industrialization index, highlighting momentum in manufacturing and automotive-linked output. Phosphate Fertilizer Pressure: US farm groups are urging the Commerce Department to end countervailing duties on Moroccan phosphate fertilizer, arguing the tariffs raise costs for US producers. Digital Identity & Services: Morocco is moving national ID renewal online as part of digital identity modernization. UK–Morocco World Cup 2030 Prep: A UK delegation of 50+ companies is visiting Rabat and Casablanca to support Morocco’s 2030 World Cup delivery beyond stadium construction, focusing on logistics and infrastructure. Women & Sustainable Agriculture: A USAID-funded Moroccan program continues to empower women in sustainable agriculture projects around Marrakech.

Morocco’s Industrial Push: AfDB’s Industrialization Index puts Morocco ahead of South Africa as Africa’s top industrial economy, underscoring faster manufacturing and export momentum. UK–Morocco World Cup Trade: A UK delegation of 50+ companies and 100+ business reps is in Rabat and Casablanca to explore support for Morocco’s 2030 World Cup delivery, beyond stadium building, with a focus on logistics and infrastructure. Mining & Processing: Xtract Resources secured a mining licence for its Amghas antimony project in north-west Morocco and is relocating processing infrastructure from Casablanca, with a 70,000 t/y gravity plant moving toward operation. Digital Identity Modernization: Morocco has digitized national ID card renewal, letting citizens pre-fill forms, upload documents, and pay online before biometric capture, aiming to cut travel costs and processing time. Secure ID Supply Chain: Emptech and Covestro signed an MoU to deliver end-to-end solutions for government-issued identity documents, targeting growing demand across emerging markets including Morocco. Transport Safety Pressure: A ride-hailing driver killing near Casablanca has renewed calls for a legal framework for app-based transport services. Fertilizer Trade Tension: US farm groups urge the Commerce Department to end countervailing duties on Moroccan phosphate fertilizer, arguing tariffs raise costs and hurt farmers. Tourism Demand Watch: UN Tourism reports international arrivals up 2% in Q1 2026, but Middle East arrivals fell 14% amid the conflict, with knock-on effects for travel costs and routes.

Battery supply chain: Chinese electrolyte maker Tinci Materials signed a supplemental deal with Cornex New Energy to nearly double long-term orders to 1.01 million tons through end-2030, adding a new Xiangyang plant—another sign of fast-growing EV and energy-storage demand. Morocco trade & exports: Morocco’s trade deficit widened 18.4% to 127bn dirhams in the first four months of 2026 as imports rose faster than exports; automotive exports climbed 18.6% to 58.28bn dirhams while aerospace rose 15.9%, but textiles, electronics and phosphate derivatives slipped. Remittances and tourism: Remittances from Moroccans abroad rose 9.8% to 39.98bn dirhams by April, while tourism receipts increased 21.2% to 44.39bn dirhams, supporting hard-currency inflows amid weaker FDI. Industrial momentum: Morocco is again highlighted as Africa’s top industrial economy in AfDB-linked coverage, with investor confidence improving and infrastructure investment supporting manufacturing output. Transport investment: Morocco is accelerating its first high-speed rail line under a 96bn dirhams transport programme for 2030, with about 30% of works completed and Chinese firms involved in contracts. Agribusiness expansion: Zalar Holding is expanding beyond poultry by integrating Zalar Farms with Africulture to broaden into fruit and higher-value crops. Energy & policy: Morocco’s electricity imports rose 63.5% in Q1 2026, reflecting higher demand and lower output, while broader regional coverage flags the need for more resilient energy planning.

Automotive Exports: Morocco’s automotive exports jumped 18.6% in the first four months of 2026 to 58.28bn dirhams, helped by vehicle construction (+33.5%) and wiring (+16.1%), reinforcing the sector’s role as the country’s biggest export engine. Trade Balance: The trade deficit widened 18.4% to 127.04bn dirhams as imports rose 12.7% to 295.9bn dirhams faster than exports (+8.7% to 168.86bn), with weaker textile/leather (-6.7%) and electronics (-3.5%) offset gains in cars and aerospace. Industrial Ranking: The AfDB’s 2025 Industrialisation Index puts Morocco ahead of South Africa as Africa’s top industrial economy, citing stronger industrial expansion and diversification beyond phosphates into higher-value sectors like aerospace. Transport & Infrastructure: Morocco is pushing ahead with its first high-speed rail line under a 96bn dirhams, three-year World Cup-linked transport plan; about 30% is reportedly finished, with 168 trains planned. Agribusiness Moves: Zalar Holding is expanding beyond poultry by integrating Zalar Farms with Africulture, adding fruit production to build a broader agribusiness platform. AfDB Funding: The AfDB announced a record €1.3bn Morocco package for 2025, including airport upgrades and municipal water, energy and climate-resilient infrastructure, plus support for entrepreneurs and governance.

Morocco’s EV push under EU scrutiny: Brussels is increasingly worried that Chinese auto giants are using Morocco as a “gateway” to Europe, after about $6bn in Chinese investment since the pandemic and new plants in Tangier Tech City and Kenitra aimed at batteries and EV parts. Fuel costs: Morocco’s diesel price is set to fall by 0.53 dirhams per liter from June 1, while gasoline stays unchanged, as oil prices react to shifting Middle East risk. Industrial growth spotlight: Morocco is highlighted as Africa’s top industrial economy in recent reporting, while the Africa Energy Forum (June 16-19) spotlights power, mining corridors and renewables needed for heavy industry. Trade & compliance risk: Spanish prosecutors seek trial of two Moroccans over alleged illegal textile-waste shipments (about 1,800 tons) via Algeciras without required permits. Agriculture stress: Locust swarms have returned to Errachidia’s oasis areas, raising fears for grazing lands and date-palm ecosystems. Domestic demand: A May economic outlook points to household consumption and rural income gains supporting growth, with inflation easing to 1.7% by end-April.

Fuel & Transport Costs: Morocco expects diesel prices to drop by 0.53 dirhams per liter from June 1, while gasoline stays unchanged, as global oil prices ease amid uncertainty over US-Iran talks and Strait of Hormuz flows. EV & Industrial Policy: China’s roughly $6bn push into Morocco’s auto and battery supply chain is accelerating output near Tangier and Kenitra, but EU policymakers fear a “backdoor” route into Europe via tariff avoidance. Industrial Competitiveness: An AfDB Industrialisation Index report says Morocco has overtaken South Africa as Africa’s top industrial economy, citing progress in automotive, aerospace, electrical, chemicals and agro-industry. Energy Transition: Morocco is positioning as a renewable energy powerhouse, with targets to raise renewables’ share in the power mix and expand green hydrogen and sustainable shipping ambitions. Food Safety: ONSSA reports Eid al-Adha passed with no major health incidents after 3,750 carcass inspections and thousands of consumer support calls. Metals Snapshot: Morocco’s steel capacity is put at 3.3m tons/year, ranking among the top Arab producers.

Industrial Ranking: Morocco has overtaken South Africa to become Africa’s most industrialized economy, according to the AfDB African Industrialisation Index 2025, with momentum tied to automotive, aerospace, electrical, chemical and agro-industrial output plus industrial platforms, free zones, ports and global partnerships. Green Industry & Trade: A report says Morocco is emerging as a key Chinese green-industry partner, drawing investment in renewables, battery manufacturing and EV supply chains since joining China’s Belt and Road in 2017. Energy & Mobility Costs: Morocco’s fuel prices are expected to fall soon after Eid al-Adha travel, following declines in international oil prices that typically feed through to pump prices. Logistics & Security: French gendarmes, working with Morocco’s security services, seized 2.7 tonnes of cannabis resin in a sea-to-road trafficking probe linked to the Lille area. Defense Procurement: Spain is set to deliver Morocco’s first Spanish-built warship in over 40 years (Avante 1800-class patrol vessel) in July 2026, with Morocco to install combat systems later. Digital Integration: Ghana’s e-Visa launch is highlighted as a broader signal for easier African mobility and trade under AfCFTA—relevant for regional tourism and business travel flows. Local Infrastructure Pressure: Atlas villagers in Tlemi (Midelt) staged a protest over lack of paved roads and weak mobile/internet coverage, saying emergencies can’t reach help.

Morocco-Spain Defence Ties: Rabat is set to receive its first Spanish-built warship in over 40 years next July, a ~€130m Avante 1800-class patrol vessel delivered without weapons and later fitted by Morocco’s navy for maritime surveillance. Cross-Border Security: French gendarmes, working with Morocco’s national security, seized 2.7 tonnes of cannabis resin at the port of Sète in a trafficking probe targeting routes from Morocco to northern France; two suspects were arrested. Rural Infrastructure Pressure: Residents of Tlemi near Imilchil in Midelt province staged a protest over lack of paved roads, mobile coverage and internet access, saying winter blocks ambulances and families can’t call for help. Industrial Ambition Under Scrutiny: A political risk report warns Morocco’s logistics-bridge strategy (ports and industrial zones) faces execution and financing risks, with delays and energy-infrastructure uncertainty threatening momentum. Beauty Tech Uptick: Moroccan firms showcased AI skin-analysis tools at the Casablanca beauty expo, pointing to faster, more personalized services as consumer demand shifts toward safer, ingredient-conscious products. Industrial Finance/Mining Watch: Steadright Critical Minerals said it has authorized consultant options and is focused on Morocco critical-mineral exploration via Moroccan entities and projects.

Morocco Power & Renewables: Morocco’s electricity imports jumped 63.5% in Q1 2026 as domestic output slipped while demand rose, even as renewable generation expanded fast—fossil fuels still dominated the mix. Industrialization Spotlight: AfDB coverage keeps putting Morocco at the top of Africa’s industrial economy rankings, with emphasis on aerospace and automotive momentum. Logistics Friction: Moroccan road freight firms are weighing a direct appeal to France’s Macron after reports of steep visa refusals for professional drivers, warning it’s disrupting cross-Mediterranean trade. Agribusiness & Fertilizer Pressure: Fertilizer costs and competition concerns remain in focus, with phosphate-linked supply and pricing pressures echoing across Morocco’s wider agri value chain. Health & Pharma Deal: Recce Pharmaceuticals signed a term sheet for a 10-year exclusive licensing/distribution plan for its diabetic foot infection gel across MENA including Morocco, pending approvals. Digital Economy: Meta rolled out paid subscription plans for Instagram, Facebook and WhatsApp, adding creator and audience tools while testing AI tiers. Capital Markets Watch: Cash Plus’ IPO momentum is part of a broader return of investor interest in African fintech liquidity.

Agri-Fintech for Morocco: New digitized credit plans are helping farmers build repayment histories and unlock financing, with Morocco included alongside Ghana and Kenya as agri-fintech turns harvests into credit profiles. Healthcare Licensing Deal: Recce Pharmaceuticals signed a non-binding term sheet to license its R327 topical gel for diabetic foot infection treatment across Saudi Arabia, GCC, Egypt, Algeria, and Morocco under a proposed 10-year exclusive distribution model. Industrial Benchmarking: The AfDB’s African Industrialisation Index 2025 puts Morocco at the top of Africa’s industrial economy, citing upgrades in productive capacity, export diversification, and momentum in automotive, aerospace, electrical, chemical, and agro-industrial sectors. Green Hydrogen Push: A hydrogen production hub is set to debut at EHTP in Casablanca, reinforcing Morocco’s push into lower-cost clean energy. Drone Smuggling Crackdown: Spanish police dismantled a drone-enabled drug trafficking network moving hashish and cocaine from northern Morocco into Spain and onward to France, highlighting the security risks tied to cross-Mediterranean logistics. World Cup Consumer Pressure (Indirect): New York and New Jersey launched investigations into FIFA ticketing practices after complaints about variable pricing and seat changes, a reminder of how major events can strain consumer trust and local commerce.

Industrial Policy & Manufacturing: Morocco has topped the AfDB’s African Industrialisation Index 2025, overtaking South Africa for the first time, with gains tied to industrial upgrading, export diversification and sectors including automotive, aerospace, agro-industry, renewables and phosphate. Mining & Corporate Moves: Morocco Strategic Minerals announced a board and management reorganization, appointing Guy Goulet as Executive Chair and Pierre-Olivier Goulet as CEO to push mineral asset growth in Morocco. Water Infrastructure: Morocco’s Ministry of Equipment and Water launched an international tender for the Falit dam in Figuig (428m dirhams), aimed at drinking water, irrigation and flood control, with commissioning targeted for 2029–2030. Agribusiness & Livestock Costs: Coverage highlights pressure on Morocco’s livestock and meat prices amid speculation and distribution gaps, with Eid al-Adha-related tensions resurfacing around support programs. Digital & Services: Meta rolled out paid “Plus” subscriptions for Instagram, Facebook and WhatsApp worldwide, while Morocco’s industrial momentum is framed alongside broader Africa financing constraints. Regional Finance Context: The AfDB warns Africa’s development financing gap exceeds $1.3tn annually, citing weak tax collection and limited private-sector credit—an issue that shapes Morocco’s investment environment too.