North African economies cannot be judged only on the basis of their GDP growth. For instance, Libya´s 70% of its GDP comes from resource extraction, mainly oil which is vulnerable to global price fluctuations. Furthermore, it is equally vulnerable to local militias deciding to cut off production.
Morocco, on the other hand, has a more diverse economy with no hydrocarbons to support it, but their GDP is still a subject to the weather which has a significant impact on agriculture production.
Concerning these issues, many countries of this region rely on other sources of GDP, such as remittances and tourism. Nevertheless, these sources can also be unpredictable. The more dynamic economy is the goal for African governments and many NGOs.
Morocco’s government has a plan which includes high-tech sectors such as aeronautics and automotive. By now, they have made an effort to attract investment to different trading zones and services including trade infrastructure and business environment reforms, which made Morocco the “second most attractive country for FDI [Foreign Direct Investment] in Africa.”
Morocco showed initial benefits of structural transformation they have observed the “natural strategy from being based on geographical location and availability of cheap labour to one based on logistics and competitive offer.” This also meant new and expanded aerospace by companies such as Boeing, Bombardier, EADS, and others. Furthermore, French automaker Renault also brought their company in Morocco, with its complete supportive industry such are American automotive suppliers Delphi and Polydesign.
It is necessary to point out that the aeronautical industry employs more than 100,000 well-trained workers. Despite that, the government was determined to do more that would help them solve the unemployment in the country. Some major adjustments were made in the education system in order to engage and prepare students for growth sector opportunities.
It is not hard to see all the improvements that Morocco made for its economy so far. According to the African Development Bank, Morocco made the biggest progress in developing manufacture in the North African region and also shows growth in potential and high-skill employment. All these things had a great impact on expanding its economy.
Automotive and aeronautics industries prospects remained high, with diverse activities across the entire value chain, which covers everything from production and services to maintenance and engineering. Furthermore, Morocco is making a long-term economic influence by building supportive industries around these great FDI acquisitions.
