China and Morocco: Strengthening Economic Ties
The relationship between China and Morocco is rapidly evolving, with Morocco emerging as a key destination for Chinese investments in infrastructure and technology. This comes as Morocco aims to solidify its role as a logistics hub connecting Africa and Europe. Notably, Morocco now supplies more cars to Europe than China, India, or Japan, aided by new highways and an expanded port in Tangier.
In a significant development, the Chinese infrastructure company Railway Shanhaiguan Bridge and German firm Vossloh Cogever secured contracts worth $56.2 million to enhance Morocco's high-speed railway network. Following the introduction of Africa's fastest train, the Al Boraq, in November 2018, Morocco is looking to expand its current 323 km high-speed train network. The upgrades will particularly benefit the vital Kenitra-Marrakech corridor, facilitating transportation ahead of the 2030 FIFA World Cup, which Morocco will co-host with Spain and Portugal.
Furthermore, the China Railway Design Corporation is conducting preliminary studies for a new high-speed railway line connecting Casablanca and Agadir. This expansion is expected to significantly reduce travel time between major cities and boost the movement of goods, reinforcing Morocco's position as a logistics hub for trade between Africa and Europe.
Strategic Partnerships and Future Prospects
Morocco's strategic partnership with China is not new; diplomatic relations date back to 1958. The Kingdom joined China's Belt and Road Initiative in 2017 and has since seen a surge in Chinese investments. For instance, a $6.4 billion memorandum was signed last year with Guoshen Hi-Tech to establish a major electric vehicle battery factory near Rabat.
Morocco's rich reserves of essential battery materials are propelling its growth as a hub for electric car manufacturing. The Kingdom is Africa's largest car manufacturer, capable of producing nearly a million cars annually. As a result, Morocco has become an attractive destination for Chinese investments in battery production and electric vehicle assembly, with trade between the two countries witnessing a 50% increase since Morocco's involvement in the Belt and Road Initiative.
Moreover, the Mohammed VI City of Technology in Tangier serves as a manufacturing and technology zone for numerous Chinese companies. With its geographical proximity to Europe and a stable political and economic environment, Morocco is positioned as a preferred location for joint ventures between Chinese and Western firms. This strategic positioning allows China to use Morocco as a gateway to North and West Africa while facilitating access to European markets, enhancing economic cooperation between the two nations.
