Morocco boasts one of Africa’s most sophisticated banking systems, with private sector credit making up 88% of the country’s GDP, according to the latest report from the European Investment Bank (EIB).
Large Moroccan banks have steadily expanded across North and sub-Saharan Africa, now operating in about 45 countries and holding 27% of their cross-border assets, the report said.
In 2023, Morocco maintained a stable non-performing loan ratio of 8.6%, although private sector companies reported slightly elevated loan delinquency rates due to challenges in repaying COVID-19 pandemic-related subsidized loans.
Beyond the banking sector, overall economic conditions in Morocco showed notable improvement as 2022 drew to a close, with inflation starting to decline in Q1 of 2023. The economic upswing coincided with a rise in stock market performance and tighter spreads on corporate lending rates.
Regarding green energy, EIB noted that Morocco plays a “leading role” in renewable energy, as “the region positions itself to become the world’s largest exporter of green hydrogen with expected exports of USD 110 billion annually by 2050.”
In addition to Egypt and Algeria, Morocco has significantly expanded its solar and wind energy capacities, ranking second in solar energy production on the continent after South Africa.
Morocco also stands among the leaders in wind energy generation. Investments in skills such as construction, installation, and project management in the green energy sector could generate 2.7 million jobs.