Strong diversified investment into Morocco contrasted with declines in FDI to

the rest of North Africa – the only subregion yet to surpass its 2007 peak. FDI

flows to North Africa were down 4 per cent to $13 billion. FDI into Morocco was up 23

per cent to $2.7 billion, thanks to considerable investment into new car technologies

(electrical, battery, cameras). By the end of 2017, the Government had confirmed 26 auto

industry investments worth $1.45 billion, including a deal with Renault (France) to increase

local sourcing of components to 55 per cent. FDI into the country’s financial sector also

expanded, as banking relations with China deepened. In addition, Uber (United States)

expanded operations in both Morocco and Egypt. Despite a decline in FDI of 9 per cent,

Egypt continued to be the largest recipient in Africa with $7.4 billion. Inflows were supported

by a large increase in Chinese investment across light manufacturing industries and wideranging

economic reforms beginning to pay off: financial liberalization, for instance, fostered

more reinvestment of domestic earnings.

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