Chinese capital flows into Moroccan green industries + manufacturing

Morocco is emerging as a critical hub in China’s green industrial strategy as the Iran war reshapes supply chains and energy security calculations, according to new research by Washington-based Stimson Centre. The report flags continued vulnerabilities — Morocco’s dependence on imported hydrocarbons and outdated grid infrastructure — despite ambitious decarbonization goals and rising foreign capital.

A convergence of ambitions: Since joining the Belt and Road Initiative in 2017, Morocco has drawn growing Chinese capital into renewables, battery production, and EV components.

The broader industrial pull: Chinese investment isn’t limited to green sectors. Medical manufacturer Jiangsu Aishelun broke ground last week on its first African plant at Mohammed VI Tanger Tech City — near the Tanger Med port complex — and is investing an additional EUR 15 mn in its Moroccan subsidiary to reach EUR 20 mn. The Tanger Tech City has become a focal point for inbound industrial investment.

SOUND SMART- What’s China doing in Morocco, anyway? A bunch of stuff. For starters, building plants there would allow Chinese firms to export to the EU under the bloc’s trade agreement with Morocco, sidestepping Brussels’ tariffs on made-in-China EVs. Morocco is already a key hub for automotive manufacturers ranging from Renault to Stellantis. Then there are batteries: Morocco sites on world-class phosphate reserves, which are key for battery production.

IN CONTEXT- Chinese companies are following the same playbook in Egypt, as we’ve previously noted, piling into manufacturing of everything from white goods and textiles to a wind turbine factory and a USD 2 bn carbon-neutral textile complex.