Morocco’s efforts to draw in investment are gaining momentum, but for many Moroccans abroad, the journey back home involves navigating a tangle of bureaucracy, sluggish administrative systems, and vague instructions leaving them feeling stuck.
These hurdles can delay projects and make the whole investment process feel more like a struggle than an opportunity. They also explain the low investment levels from Morocco’s diaspora.
A 2022 HCP report found that a mere 2.9% of Moroccan expatriates invest in Morocco. Of this small percentage, men are more likely to invest than women.
These figures are supported by a recent report from the Government Work Observatory, which reveals that while the financial transfers of Moroccan diaspora are substantial, only 10% are allocated to productive investments.
African countries like Nigeria and Kenya they allocate 45% and 35% of transfers to investments, respectively.
This low number is not surprising, as many Moroccan expatriates interviewed by Hespress English cited bureaucratic and administrative hurdles as one of the major deterrents to investing in Morocco.
Hafida Mokadiri, a Moroccan living abroad, returned to Morocco in 2011 after spending over 30 years in France with plans to expand her consulting company and launch a biological agriculture project in the Boulmane region, where she grew up.
Inspired by royal speeches encouraging investment, she hoped to introduce new agricultural techniques, including saffron cultivation, to the area.
But her vision quickly ran into a wall of bureaucracy.
“It took me a year and a half just to get one document, and that was just the beginning,” she told Hespress English.
Mokadiri had to navigate through various local authorities, and the process was slow and unclear.
“In France, when you need something from the government, they give you clear instructions, a timeline, and a fast response. Here, it’s all done by word of mouth and can take months,” she explains.
Mokadiri’s experience shows that while the government may push for reforms, the reality is that local administrations often lack clear knowledge of the procedures. This leads to delays and confusion, especially for foreign investors who might not be familiar with the local system.
Even when investors go through the necessary steps, there’s no guarantee of quick results. Mokadiri has been waiting over a year now for a document needed to expand her project, with no clear explanation for the delay.
Mokadiri says that there’s an absence of long-term vision, encouragement, and professional accountability. Despite royal directives to streamline processes, their implementation, particularly in rural areas, remains inconsistent.
“Drawing from my experiences in France, I envision a project similar to a service certification program.”
A service certification is like a badge of honor given to a service by an impartial organization, Mokadiri says.It shows that the service is good and meets certain standards that were agreed upon by experts, people who use the service, and the government.
This initiative will ensure that Moroccan investors are provided with accurate information and quality service from competent administrative staff.
Hanane Benkhallouk, executive director of Sustain Leadership Consultancies and a Moroccan entrepreneur who has spent over 25 years working in the US and UAE, shares a similar view and says that the challenge has been finding the right information.
“We want to invest, but it’s not clear where to go or who to talk to,” she tells Hespress English.
Benkhallouk believes that Moroccan expatriates are not just a source of investment but also valuable assets in terms of expertise and connections.
Despite Morocco’s growing economy and international connections, Benkhallouk finds it difficult to get clear guidance on how to navigate the system.
According to the young entrepreneur, there is no structured or comprehensive approach outlining what investors need to do, which administrations to approach, or how to obtain clear and effective information.
“Even when we reach out to those responsible for diaspora investments, the responses often fall short of expectations.,” she says.
“I’ve been contemplating investing in Morocco for the past three to four years, but the challenge remains: where can we find the necessary information? We need platforms that simplify the process,” Benkhallouk adds.
This lack of structure is further confirmed by Abdellah Fergui, President of the Moroccan Confederation of Very Small Enterprises and Small and Medium-Sized Enterprises, who says that he knows many Moroccans abroad who have promising project ideas but struggle to find the right resources and guidance.
Not only that, according to Fergui Moroccans living abroad who want to invest in Morocco often start with very small or small businesses, but these types of businesses face challenges from various institutions because they are marginalized in all government programs.
“The government tends to focus on medium and large businesses, which poses a major problem since small businesses make up over 98% of all businesses in Morocco,” Fergui says.
Despite these issues, many expatriates still believe in Morocco’s potential. The royal strategy to turn the country into a gateway for African investment has certainly opened doors for international business.
Mohammed Boumediane, the president of the ZIWIT group and entrepreneur who has investments in France, the United States, Saudi Arabia, and Spain, told Hespress Eng that despite Morocco’s changing market, it wasn’t until recently that he considered investing in his home country.
He attributes this shift to the royal strategy focusing on Africa, which has opened up new business opportunities and a wider talent pool.
“In the past, Morocco’s market was limited, but now it’s easier to connect with Africa and recruit talent,” he says.
Morocco’s strong ties with African countries and its growing digital infrastructure make it an attractive place to do business.
“For me, Morocco’s strong relationship with African countries is very important. When operating in Africa, I prefer to present myself as Moroccan rather than French because there is an anti-Western sentiment in many African countries, where they prefer to collaborate with Morocco over Western nations,” explains Boumediane.
The presence of well-established banks that operate across Africa also provides a solid foundation for investors according to Boumediane.
Boumediane recognized that investment hurdles are common worldwide. However, he highlighted Morocco’s more efficient process, especially with the establishment of the Regional Investment Center.
However, despite his wealth of international investment experience, Boumediane still faces some challenges.
Just a few weeks ago, Boumediane said that his accountant called to inform him that his physical presence was required to sign and legalize a document; something he feels could have easily been handled online.
“In other countries, electronic signatures are normal. Why not in Morocco?” he questions.
These kinds of administrative delays are frustrating for investors, especially when they are coming from abroad. Small tasks that could be completed remotely require a costly and time-consuming trip back home, slowing down progress.
Despite these hurdles, Boumediane has been in talks with the Moroccan government about setting up Africa’s largest data center in southern Morocco.
His project aims to serve African countries, allowing them to store their data in Morocco with judicial immunity—meaning no interference from the Moroccan government.
But for investors like Boumediane, Mokadiri, and Bnekhellouk, the potential of Morocco is clear despite the slow-moving bureaucratic system and lack of clear communication.
“To encourage diaspora investment, we need to demonstrate the potential of their projects in Morocco and that’s currently difficult with the alarming trend of business closures, with over 33,000 businesses dissolved in 2023 and nearly 40,000 this year,” Fergui says.
The post Why do Moroccan diaspora find it so hard to invest back home? appeared first on HESPRESS English – Morocco News.
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