Over the past five years, Morocco has emerged as one of the most dynamic North African destinations for Chinese investment, propelled by the twin engines of the Belt and Road Initiative (BRI) and the global pivot towards electric vehicles (EVs). For Hong Kong and Mainland Chinese investors, the country offers an attractive mix of advantageous geography, a robust automotive sector, political stability, and preferential access to European markets.

Compared to other North African nations, Morocco's economy is more diverse, while not being dominated by the oil and gas sector. Its largest export sector is automotive manufacturing, which was worth US$13 billion in 2024. It also has a robust aerospace sector, while being a major producer of phosphates and fertilisers (the country holds about 70% of global phosphate reserves). It also maintains strong export levels in the textiles and apparel, agriculture and agribusiness, and electronics and electrical equipment sectors, while it’s similarly beginning to emerge as a force in the renewable energy equipment and pharmaceuticals industries.

Morocco’s appeal in terms of foreign direct investment (FDI) has also shifted from conventional trade expansion to more highvisibility industrial infrastructure projects. While bilateral commerce has continued apace across multiple sectors, the most transformative BRI developments have centred on greenfield projects in the EV battery supply chain, renewable energy, and logistics infrastructure sectors.

One of the first North African nations to sign up to the BRI, Morocco’s flagship BRI projects are primarily structured as industrial partnerships funded by Chinese capital with occasional European participation, with the Tangier Med Port Complex being a prime example. Now fully operational, the port is Africa’s largest transhipment hub, with the adjacent Tangier Tech industrial smart city providing worldclass infrastructure for exportoriented manufacturing and logistics, while hosting multiple Mainland manufacturers.

Morocco is also investing heavily in its bid to become a regional hub for EV battery technology, with the BRIbacked Gotion High-Tech Kenitra Gigafactory set to be Africa’s first largescale EV battery plant. A SinoEuropean joint venture, it involves an initial US$1.3 billion phase, targeting 20 GWh of capacity, followed by potential expansion to 100 GWh at a total investment value of up to US$6.5 billion. The first phase is now expected to come online in 2026.

The Gotion project has catalysed a wave of complementary Chinesebacked projects under the BRI umbrella. Accordingly, the Shenzhenheadquartered BTR New Material Group is investing roughly US$300 million in a Tangier cathode plant with a planned annual capacity of 50,000 tonnes. Similarly, Zhejiangbased Hailiang is building a copperprocessing facility in Tangier Tech, committing about US$450 million to supply battery and automotive components, while Hunan’s Shinzoom is spending a similar amount on an anode plant.

Rounding things up, Shenzhenlisted CNGR Advanced Material (through COBCO, its local joint venture), is developing a cathode materials complex in Jorf Lasfar, which offers port access and has existing industrial synergies. Collectively, all of these initiatives will benefit from the integrated supply chain that sustains Morocco’s automotive manufacturing base.

Supporting these energyintensive industries is a growing portfolio of renewable energy projects. This has seen a substantial number of Mainland engineering, procurement, and construction contractors bidding for wind and solar farms linked to industrial clusters, with some plants expected to supply power directly to battery factories. In addition, Morocco’s national goal of generating more than 50% of its electricity from renewables by 2030 should further boost the appeal of its greenenergy exports to environmentallyconscious European buyers.

Compared to Mainland China, Hong Kong’s direct investment presence in Morocco remains modest. This, however, may well change given the growing opportunities in financing, capitalmarket access, shipping, and trade facilitation, many of which are being driven by the host of Mainland firms rolling out projects in the new energy and EV spaces.

Beyond these, Morocco’s diverse economy and strategic location (just 15km from continental Europe), along with its nexus of trade agreements, including pacts with the EU, US, and several African states, should all deliver burgeoning opportunities for enhanced trade.

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