The flow of direct investments from Moroccans living abroad (IDME) increased from 3.8 billion dirhams (MMDH) in 2009 to more than 10.9 billion dirhams in 2019, according to Bank Al-Maghrib.
«Dsince the early 2000s, IDMEs have experienced a significant increase, their average annual volume having risen, according to data from the United Nations Conference on Trade and Development (UNCTAD), from 232.3 million dollars between 2000 and 2009 to 540.2 million dollars over the following decade, ”specifies BAM in its annual report on the economic, monetary and financial situation for the 2019 financial year.
In regional comparison, Morocco ranks over the last ten years in 5th African investor abroad. We note that as a percentage of GDP, the volume of FDI represents only 0.5%, a low proportion compared to the average for emerging and developing countries (PEMD) which reaches 1.5%.
Moreover, no Moroccan company has been able to rank among the 100 multinationals of SLDBs most active in terms of foreign investment.
By sector of activity, banks and financial activities are the leading investor abroad with a share of 30% of the overall stock and a regular outflow of MAD 2 billion on average annually over the past ten years.
Likewise, insurance companies make significant investments with an average annual volume of 515 million dirhams (MDH).
For their part, telecommunications account for 11% of this stock, the industrial sector 13.2%, dominated by cement factories and OCP, while investments in the real estate sector have increased sharply between 2011 and 2015, followed by a marked decline.
By destination, African countries attract the bulk of FDI, Côte d’Ivoire being the first investment country, with 13.3% of the stock at the end of 2017, followed by Mauritius (6%) and Egypt (3.5%).
Apart from Africa, the main countries are Luxembourg, France and Great Britain with respective shares of 6.9%, 6.2% and 3.3%.
However, IDMEs remain dominated by equity investments, while reinvested earnings and debt instruments remain relatively low.
These three forms have represented respectively 75%, 17% and 8% of net flows of FDI during the last ten years. In international comparison, the shares of reinvested earnings and debt instruments of SLDBs are significantly higher, reaching 39% and 17% respectively.
This would reflect the fact that the expansion of IDMEs is still in its infancy, and that these are not yet producing sufficient benefits for their self-development.
The distinction of IDMEs between mergers and acquisitions and new “Greenfield” installations indicates that the latter remain dominant with a share of 91.4% during the last ten years, thus testifying to the long-term commitment of Moroccan investors to the foreign, but also their exposure to a higher risk.
During the last decade, the income of IDMEs totaled $ 2.2 billion, consisting of 64% dividends and 36% reinvested profits. This structure is similar to the world average whereas SLDBs observe an inverse configuration with a share of reinvestments of 58%.
In relation to their stock, the profits of IDMEs represent a return of 6.2%, a level higher than the average of 4% achieved by SLDBs and close to the 6% recorded worldwide.
The development of direct investment abroad may raise concerns about the mobilization of part of national savings to other countries. This question arises particularly for developing countries with a need for significant investment in infrastructure and relatively low national savings.
The analysis of the ratio of foreign direct investment to national investment (GFCF), which provides information on a possible foreclosure effect, shows that it remains low, fluctuating around 1.7% on average between 2008 and 2017. It also remains well below the levels observed for SLDBs (4.8% on average) and 11% for advanced economies.
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