30% in investment decline in Morocco in H1

Morocco experienced a decline of 29% in Foreign Direct Investment (FDI) revenues at the end of June 2023, as reported by Morocco’s Office d’Echange (OE). During the first half of 2023, FDIs amounted to MAD 15.5 billion ($1.5 billion), compared to MAD 22 billion ($2.2 billion) recorded at the end of June 2022, according to the OE report.

This decrease in FDI value in Morocco reflects the global market trend. The World Investment Report 2023, published by the United Nations Conference on Trade and Development (UNCTAD), indicates that developing countries are facing an annual investment deficit in their pursuit of achieving the Sustainable Development Goals (SDGs) by 2030. The current gap amounts to approximately $4 trillion per year, a significant increase from the $2.5 trillion reported in 2015 when the SDGs were adopted.

Global foreign direct investment (FDI) experienced a decline of 12% in 2022, according to the same report. The study explores the impact of investment policies and capital market trends on SDG-related investments, particularly in the clean energy sector.

The report emphasises the urgent need for renewable energy investments in developing countries, estimating a requirement of about $1.7 trillion per year. However, in 2022, these countries only attracted $544 billion in clean energy FDI. Despite witnessing a threefold increase in renewable investments since 2015, the majority of these funds flowed to developed nations.

In light of this situation, the report calls for immediate support to developing countries to enable them to attract significantly higher levels of investment for their clean energy transition.