According to the Wall Street Journal, Morocco has surpassed South Africa as an automotive hub on the African continent and is expected to produce more cars a year than Italy
The kingdom is also becoming a major supplier to European car factories, including Ford's high-tech plant in Valencia, Spain, which imports seating, interior accessories, wiring and home appliances.
The French manufacturer Renault, which has a market share of more than 40% in the region, has built two assembly plants in the last five years in Morocco, with a production of more than 200,000 cars a year. Similarly, Peugeot, which is banking on a major expansion project, is building a plant in Morocco, whose production is expected by the end of the year.
According to the Wall Street Journal, global carmakers see great growth potential in North Africa and are turning the region into a manufacturing hub. Volkswagen, Renault,Peugeot, Hyundai and Toyota have invested billions of dollars in Africa in recent years, attracted by growth prospects that other more mature automotive markets can no longer offer.
New car sales in the United States, China and Europe are currently declining after an exceptional decade, while the Middle East market and Africa, although still small, is expected to have 90 million vehicles by 2040, compared with 59 million currently.
The Wall Street Journal also notes that in a report released last May, the International Monetary Fund (IMF) congratulated policymakers in the North Africa and Middle East region for implementing economic and financial reforms.
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