AGP Executive Report

Central Banking & Payments: The CBUAE and Bank Al-Maghrib signed two MoUs in Abu Dhabi to boost supervisory cooperation and explore interlinking instant payment platforms, card switches and financial messaging—plus work on Sharia-compliant cross-border financing and fintech/virtual-asset frameworks. Remittances & External Accounts: Morocco’s diaspora sent MAD 89.22bn in remittances through August (+9%); travel receipts rose to MAD 97.93bn and tourism revenue hit MAD 97.92bn (+9.7%), while the goods trade deficit widened to MAD 282.6bn. Tourism Momentum: Morocco welcomed 14.1m visitors by end-August (+4.5%), lifting overnight stays and key destination performance (Ouarzazate +23%, Rabat +16%). Local Governance & Fiscal Tightening: Interior Ministry urged local councils to curb nonessential new spending ahead of 2027 elections and focus on essential services while improving local revenue collection. Logistics Investment: La Voie Express Group will invest MAD 100m in a new logistics platform in Lqliaa (Agadir region), targeting warehousing, value-added services and job creation. Corporate Results: Casablanca-listed firms posted +12.9% profit growth in H1 2026 to MAD 29.6bn, led by industrial and insurance sectors. Trade & Inputs Watch: Energy and sulfur drove nearly half of Morocco’s import increase through August, with sulfur imports up sharply—relevant for phosphate fertilizer costs. Governance & Rights: Amnesty renewed allegations of long-running spyware use by Morocco’s DGST, including claims involving Pegasus.

Rail & Trade Integration: AfDB and Germany’s BMZ are partnering to develop Africa’s rail systems, cut transport costs, and boost cross-border interoperability, starting with a feasibility study for an African Rail Competence Centre. EV Batteries in Morocco: Volkswagen’s PowerCo and China’s Gotion will set up three battery joint ventures—in Spain, Slovakia and Morocco—aimed at scaling LFP production for Europe and North Africa. Customs & Enforcement: Morocco’s customs expanded AI-based digital risk checks to audit nearly 650m dirhams of imports, flagging undervaluation and revising declared values. Logistics & Investment Positioning: DHL named Morocco a priority “Geographic Tailwinds” market, citing nearshoring, FDI and its Europe–Sub-Saharan bridge role. Port Cooperation: Tangier Med hosted Latin America and Caribbean port executives to study cooperation with Europe, America and North Africa. Tourism Competition: South Africa’s tourism chief says Morocco and Tunisia are outpacing it, blaming weak air access and safety concerns in key markets. Energy Demand Pressure: Morocco’s electricity demand is outpacing production, driving higher imports. Governance Watch: Tangier’s mayor was placed in preventive detention over alleged electoral fraud tied to marked ballots.

Aviation & Security: A Dubai–Tel Aviv pilot allegedly stabbed the other pilot and tried to crash a Boeing 737, forcing an emergency landing in Saudi Arabia and reviving focus on crew-related hijacking attempts. Energy & Industry: Morocco’s electricity demand is rising faster than production, driving higher imports, while the government says fuel supplies are secured through end-2026 and monitors stocks to protect transport and inflation. Power Project: Ifahsa pumped hydropower storage near Chefchaouen (300MW) is positioned as a “giant rechargeable battery” to absorb more solar and wind and unlock private investment. Politics & Jobs: Post-election economic trade-offs are back on the table for the 2027 budget, with unfinished promises on jobs, women’s participation, and senior income. Rights & Governance: Amnesty renews allegations of Morocco’s spyware surveillance of civil society; separately, a mine accident in Khenifra prompts calls for urgent judicial investigation. Digital Economy: Cash Plus and Damanesign expand access to qualified e-signatures via a network of agencies. Business & Finance: SSNIT increased its stake in Société Générale Ghana to 24.36% as Attijariwafa Bank completes control. International Links: Sierra Leone and Morocco agree a new cooperation roadmap, including trade, fertiliser supply, water, fisheries and the Nigeria–Morocco gas pipeline. Media: Holmarcom’s Mohamed Hassan Bensalah signs an agreement to acquire Maroc Soir (Le Matin/Assahra Al-Maghribia).

Airport & tourism infrastructure: The AfDB and Germany are partnering on a rail-focused programme to cut Africa’s transport costs and improve cross-border interoperability, with a feasibility study for an African Rail Competence Center starting in October. Aviation & ports: AfDB financing of about €270m is set to expand Morocco’s major airports (Marrakech, Agadir, Fez, Tangier), boosting capacity and connectivity for tourism and cargo. Shipping & logistics: Liebherr shipped an LPS 500 rail-mounted crane to Casablanca’s Marsa Maroc, billed as the first of its kind commissioned in Africa, supporting the Marsa 2030 bulk-handling push. Governance & business leadership: Morocco appointed Fatima Ezzahra El Mansouri as the country’s first woman prime minister, starting coalition talks after PAM won the most seats. Finance & compliance: Morocco’s financial intelligence unit is probing luxury car purchases in Casablanca, Rabat and Tangier over suspected money laundering and beneficial ownership links. Energy & industry: Volkswagen and Gotion plan a €3.66bn battery investment across Europe and North Africa, including a Kenitra cathode materials plant. Trade & education: Morocco topped France’s international student intake in 2024 (12% of arrivals), per OECD.

Foreign Investment Climate: A new U.S. report says Morocco is actively courting export-focused investors, highlighting sectors like automotive, aeronautics, textiles, energy and agribusiness, plus FTAs (including with the U.S.) and heavy infrastructure spending. Public Finance: Morocco’s Treasury placed MAD 2.8bn in short-term cash surpluses via one-day repo and unsecured placements. Macroeconomy: HCP data points to slower growth in Q2 2026 (4% vs 5.8% a year earlier), with non-agricultural activity cooling while agriculture and fisheries picked up. Energy & Transport Costs: Fuel prices are set to rise again (diesel +0.85 dirham/litre), while the government keeps exceptional support for freight and passenger transport to shield fares. Aviation & Infrastructure: AfDB signed a €270m deal to expand and modernize Morocco’s airports under PEMIA. Industrial Policy: Volkswagen and Gotion plan a €3.66bn battery supply-chain push, including cathode materials in Kenitra. Governance: King Mohammed VI appointed Fatima Ezzahra El Mansouri as Morocco’s first woman prime minister, tasked with forming a coalition government. Business & Trade Links: The U.S. authorized Sustain Energy to export LNG to Morocco through 2050. Security & Rights: Amnesty reports on how Morocco’s surveillance system allegedly targets journalists and activists.

Historic Government Leadership: King Mohammed VI appointed Fatima Ezzahra El Mansouri as Morocco’s first woman prime minister, tasking her with forming a new government after PAM won 97 of 395 seats—short of a majority—so coalition talks begin immediately. AfDB Aviation Financing: AfDB signed a €270m loan with ONDA for the Airport Infrastructure Extension and Modernization Program, targeting capacity upgrades in hubs like Marrakech, Agadir, Fez and Tangier. Energy Infrastructure Funding Push: Morocco and partners are seeking private and multilateral financing for the $25bn African Atlantic Gas Pipeline ahead of a Q4 2026 investment decision, with possible support from Exim Bank and the World Bank. Transport Integration Test: Morocco’s plan to link high-speed rail with Casablanca Airport raises a key challenge: making air-rail ticketing and operations truly seamless, not just building new stations. Digital & Payments Update: Meta’s WhatsApp Business pricing changes from Oct. 1 will affect costs for template messages, with free messaging rules tied to the customer service window. Business/Industry Watch: Holcim Morocco reported an 8.1% drop in first-half 2026 net profit, while Hitachi is reshuffling its dealer network to expand coverage, including Morocco via Movicortes.

Historic Leadership: King Mohammed VI appointed Fatima Ezzahra El Mansouri as Morocco’s first woman prime minister, tasking her with forming a coalition after PAM won 97 of 395 seats in the Sept. 23 election; she says the goal is to “restore hope” for youth amid jobs, living costs and public-service pressure. Women in Business & Governance: The appointment is also a regional milestone for women in Arab politics, with Morocco’s king retaining key powers over foreign policy and security. Agri-Food Trade: Morocco’s agri-food exports to the EU edged up to €2.66bn in Jan–Jul 2026 (+1%), while EU exports to Morocco fell 10% to €1.99bn—highlighting demand and competitiveness shifts. Mining & Investment: Critical Mineral Resources reported high-grade silver results from drilling at its Agadir Melloul project, adding a potential new silver-rich target. Digital & AI: Morocco and Mistral AI released first open-source Darija-focused AI tools, including Arabic dialect ID and Darija speech-to-text, under the “AI made in Morocco” roadmap. Security & Tech: The FBI warned hackers linked to ShinyHunters after a claimed breach of sensitive bureau data, underscoring cyber-risk for institutions.

Morocco–EU Battery Push: Volkswagen, PowerCo and Gotion agreed a €3.22bn plan to build LFP battery cells and cathode materials across Spain, Slovakia and Morocco, with a Kenitra cathode facility expected to produce up to 100,000 tonnes annually—moving Morocco further upstream in the EV supply chain. Defense & Procurement: The US approved a $105.65m AMRAAM-related package for Morocco as a major non-NATO ally, covering missile support equipment and logistics. Regional Business Links: The Mauritanian-Moroccan Economic Forum in Nouakchott backed faster joint work via technical committees, targeting sectors like fisheries, agriculture, trade and tourism. Innovation Benchmark: WIPO’s Global Innovation Index 2026 places Morocco among the fast climbers over the past decade, as AI boosts VC and corporate R&D. Politics & State Building: Commentary on Morocco’s election results frames progress as institutional practice—forming governments, delivering reforms and holding elections. Sports Governance Clash: FIFA accused UEFA of a misinformation campaign and harassment in US court filings tied to Infantino’s World Cup investment plan, with the FIFA presidential election set to be held in Morocco next March. Airline Security Incident: Senegal’s Air Senegal replaced its cabin crew on the Dakar–Paris route after allegations of contraband package trafficking.

Telecom & Connectivity: Morocco’s mobile subscriptions topped 58.8 million by end-June 2026, with penetration at 157.9%, while internet subscriptions neared 42 million as growth stayed modest. Public Finance: Morocco’s budget deficit narrowed 1.6% through August to 58.6bn dirhams, as revenues rose faster than spending. Disaster Risk Governance: An OECD-backed update says Morocco has strengthened disaster risk management, including a Chief Risk Officer at the Ministry of Interior and work toward a National Risk Observatory, plus expanded early-warning infrastructure. Agriculture & Water Tech: Morocco selected a Rubicon-led joint venture to modernize Béni Moussa irrigation canals in Tadla, using automated control and monitoring to support the shift to pressurized irrigation. Mining & Corporate Performance: Managem reported a near tenfold jump in first-half profit to 3.778bn dirhams, driven by ramp-ups at Tizert (copper) and Boto (gold). Clean-Tech Manufacturing: A new EU mapping flags Morocco as a leading Euro-Mediterranean base for clean technologies, especially batteries and EV supply chains. Business & Trade: Morocco’s pepper exports to the EU rose 88.35% over a decade, reaching 192,719 tons in 2025/26 and securing third place among suppliers. Energy Transition (Regional): Volkswagen and Gotion plan LFP battery supply-chain joint ventures, including Kenitra, Morocco, as part of a broader European buildout. Local Politics/Justice: Tangier’s mayor was placed in police custody over an election-ballot investigation, with prosecutors citing suspected ballot-related violations.

Auto & Batteries: Volkswagen will deepen its partnership with Gotion and set up three battery joint ventures, including a Kenitra plant in Morocco, after selling a 5.3% stake in Gotion—aimed at building a European LFP supply chain. Morocco Politics: Morocco’s PAM is set to lead after election results, with Fatima Zahra Mansouri tipped for prime minister, as turnout stayed low and the PJD rebounded. Elections Probe: Tangier mayor Mounir Limouri was detained on return from Spain as investigators widen a ballot-manipulation case. Air Connectivity: Three Israeli carriers plan non-stop flights to Morocco this fall, including Marrakesh service and Israir’s Casablanca plans, alongside broader investment and trade talks. Markets: Casablanca Stock Exchange opened higher; MASI rose 0.62% to 17,928.63. Business & Trade: Morocco presented migration statistics at an Arab League statistics meeting in Jeddah, while Oman showcased AI use in household surveys. Religion Rights: A new report challenges Morocco’s claims of religious tolerance, pointing to legal limits around Ramadan observance, conversion and burial.

Morocco–Saudi Security Alignment: King Mohammed VI told Saudi leaders that “any attack on Saudi Arabia is an attack on Morocco,” condemning Houthi strikes and stressing the security of the Gulf is inseparable from Morocco’s. Morocco–Spain Border/Transport: Spain asked Rabat to adjust drone flight altitudes near Melilla after a drone in Moroccan airspace interfered with an Iberia landing, raising aviation-safety concerns in a weather-sensitive airport. Macroeconomic Outlook: Bank Al-Maghrib forecasts Morocco growth at 4.4% in 2026, then slowing to 2.9% in 2027 as the bumper harvest fades; unemployment is improving and the energy import bill is set to rise then ease. Tourism Momentum: Morocco climbed seven places to 70th in the WEF Travel & Tourism Development Index, citing gains in cultural resources, services, infrastructure and safety. Finance/FX: The dirham weakened 1.5% vs the dollar and 0.3% vs the euro over Sept. 17–23; reserves stood at MAD 503bn. Aviation & Travel Links: Israir plans two weekly Marrakesh flights from early November and seeks a weekly Casablanca route, expanding Israel–Morocco travel options. Politics & Governance: Morocco’s parliamentary election delivered a low-turnout parliament reshuffle, with PAM leading and coalition talks looming.

Morocco Economy Outlook: The EBRD says Morocco should stay resilient, forecasting growth of 4.8% in 2026 and 3.9% in 2027, helped by a rebound in agriculture and low inflation, while noting weaker industry/construction and geopolitical uncertainty. Morocco Politics & Parliament: Morocco’s Authenticity and Modernity Party (PAM) won the parliamentary election with 97 seats, while turnout fell to 38%; the PJD surged back to lead the opposition, and coalition talks are now the big business-and-jobs question. Banking & Liquidity: A separate report says Morocco’s banking liquidity deficit is easing as lending growth accelerates, a sign credit conditions may be improving for firms. Trade Logistics: Eurostat data shows sea freight dominates Morocco’s trade in 2025 by both value and weight, underlining how port and shipping reliability remains central to business costs. UN Diplomacy: Foreign Minister Nasser Bourita met Saudi, Lebanon and UAE officials in New York to deepen cooperation, including energy and industry. Regional Security: King Mohammed VI condemned Houthi attacks on Saudi Arabia, reiterating that attacks on Saudi are attacks on Morocco—important for risk planning around the Red Sea. Aviation & Tourism: Israir plans two weekly Marrakesh flights and is seeking a Casablanca route, boosting travel options for Morocco-bound demand.

Morocco Economy Outlook: The EBRD says Morocco remains among the best performers in the SEMED region, forecasting 4.8% growth in 2026 and 3.9% in 2027, helped by a rebound in agriculture and low inflation, while noting a still-tight external position. Banking & Credit: Bank Al-Maghrib reports a narrower banking liquidity deficit and faster lending growth to the nonfinancial sector, with the policy rate kept at 2.25%. Trade Logistics: Sea freight dominates Morocco’s trade in 2025, carrying about 86.6% of import weight and 95.6% of export weight. Election Watch: Morocco’s PAM won the parliamentary vote with 97 seats, in a low-turnout race that saw the Islamist PJD surge back to lead the opposition. UN & Diplomacy: Foreign Minister Nasser Bourita held talks in New York with Saudi Arabia, Lebanon and the UAE, while Morocco pushes its UN Security Council bid for 2028-2029. AI & Industry: NVIDIA confirmed Morocco’s role in two African AI compute projects, including a 500MW Nexus AI Factory near Casablanca. Migration Pressure (Spain link): Spain’s Ceuta crisis continues to drive political and policy moves, including calls for faster EU deportation procedures.

Parliament & Coalition Talks: Morocco’s Authenticity and Modernity Party (PAM) won the parliamentary election with 97 of 395 seats, while the Islamist PJD surged back to lead the opposition; turnout fell to 38%, and PAM now needs coalition talks as the new government faces pressure over jobs, wages and the cost of living. Banking & Credit: Bank Al-Maghrib reported a narrower banking liquidity deficit (down to 129bn dirhams in July-August) alongside faster lending growth to the nonfinancial sector (10.1% year-on-year in July). Migration Policy: The government is preparing a royal decree law to speed up returns of migrants remaining in Ceuta, aiming to cut delays in asylum processing and execution of return decisions. Industrial Competitiveness: Oliver Wyman says Morocco had the world’s lowest automotive labor cost per vehicle in 2024 (about $106), reinforcing its appeal as a low-cost production base. AI Infrastructure: NVIDIA confirmed Morocco’s role in two African AI compute projects, including a 500MW Nexus AI Factory near Casablanca. Diplomacy in New York: FM Nasser Bourita held talks with counterparts including Côte d’Ivoire, Azerbaijan, Saint Kitts and Nevis, and Tuvalu on bilateral cooperation. Defense & Industry: Morocco is set to host major Israeli defense firms at the Marrakech Airshow, signaling deeper military-industrial ties.

Morocco’s Election & Coalition Math: PAM won Morocco’s parliamentary vote with 97 of 395 seats, but fell short of a majority, pushing coalition talks as youth frustration and low turnout (about 38%) stay in focus. Economic Outlook: The EBRD expects Morocco’s growth at 4.8% in 2026, helped by a rebound in agriculture after drought, with growth moderating to 3.9% in 2027. VAT on Social Ads: Meta will apply Morocco’s 20% VAT to some Facebook and Instagram ad purchases from Oct. 1 unless advertisers provide a valid Moroccan tax ID. Sahel & UN Diplomacy: Foreign Minister Nasser Bourita urged stronger African action to prevent conflicts and highlighted Morocco’s Sahel vision at the UN, including the Atlantic access initiative. Trade & Infrastructure: Morocco and Mauritania signed an agreement to rehabilitate and widen the Nouakchott–Nouadhibou road corridor (480 km) to boost trade. Bilateral Expansion: Morocco and Indonesia moved to deepen economic, tourism, cultural, academic, and parliamentary cooperation. Business & Finance Angle: Morocco is pushing the UN to mobilize more private capital for development financing, citing PPP experience.

Morocco Politics & Alliances: PAM’s Fatima Zahra El Mansouri says the party has “no red lines” on future coalition talks after winning 97 seats, keeping discussions open even with the PJD, while waiting for King Mohammed VI to appoint the head of government. Morocco Economy & Finance: Bank Al-Maghrib extended the liquidation timeline of the long-defunct BNDE, a reminder of how the bank’s opaque accounting and past mismanagement reshaped Morocco’s banking rules. Mining & Corporate Results: Managem reported first-half profit up to 3.778bn dirhams as copper and gold output rose and prices strengthened, with a consolidation phase flagged for the second half. Business & Tech Leadership: McKinsey named Yassir Zouaoui Managing Partner for Morocco and Francophone Africa, taking over from Mehdi Lahrichi. Regional Trade & Migration: Spanish PP leaders face backlash over claims tied to Ceuta; meanwhile, Morocco’s cooperation and people-to-people ties are being tested by local political moves. Aviation & Tourism: Jet2 expands winter routes, including new Morocco links, while luxury cruise traffic continues to grow in the region. Energy & Industry: Germany, Austria and Luxembourg launched a €2.12bn support scheme for sustainable aviation fuel, and Morocco’s industrial push also shows up in battery-storage progress at OCP Benguerir.