Morocco, Future Gateway for American Foreign Direct Investment? [FULL]

Rédaction Africa Links 24 with Anass MACHLOUKH
Published on 2024-03-27 12:54:00

The diplomatic ballet of members of Congress continues. A new bipartisan delegation has visited Morocco as part of an official visit, the fifth of its kind in a year following a series of visits that included heavyweights from Capitol Hill, such as Senators Lindsey Graham and Bob Menendez.

Republicans and Democrats, as divided as they may be on domestic policy, nevertheless get along wonderfully when it comes to Morocco. The delegation, consisting of six members of Congress, includes young rising stars in American politics, such as Texas Republican Congressman August Pfluger, a veteran and former national security advisor to Donald Trump. Other influential figures in Congress are also taking part in this visit, including Democratic Representative from California, Lou Correa.

All share the common desire to promote cooperation between Morocco and the United States, whose relations are deeply rooted in history. Congressman Correa, in fact, did not hesitate to remind everyone of this fact in his first public address in the Kingdom. August Pfluger, on the other hand, emphasized the historical ties between Morocco and the United States, expressing satisfaction with the extremely important historical relations during a meeting with the Minister of Foreign Affairs, Nasser Bourita, at the Moroccan Ministry of Foreign Affairs.

Towards more American FDI?

The American delegation has praised the current state of bilateral cooperation between Rabat and Washington, tied by a free trade agreement that offers several untapped opportunities. Although bilateral trade is on the rise, it is still below its full potential, with total trade increasing from 43.4 billion dirhams in 2021 to 68.9 billion dirhams at present.

Business was at the center of the congressmen’s visit, a rarity in a relationship focused more on security and diplomatic cooperation. Looking towards the future, American lawmakers and the Prime Minister highlighted Morocco’s ability to serve as a platform for American investments in Africa, in a mutually beneficial partnership. Washington, aiming to counter China’s influence in Africa, seems determined to move forward by establishing footholds and investment platforms through Morocco. This is not only a geopolitical calculation but also a deeply held belief, as explained by Gina Abercrombie-Winstanley, former senior advisor at the State Department.

The prerequisites!

Morocco is seen as a strong candidate given its historical alliance with the United States. The groundwork has already been laid, with the United States International Development Finance Corporation (DFC) promising to invest three billion dollars in accordance with memorandums of understanding signed in 2021. This agreement aims to provide financial and technical support for private investment projects in Morocco and Sub-Saharan Africa, coordinating with Moroccan partners.

Despite distractions such as the Russo-Ukrainian war and the conflict in Gaza, the Biden Administration has not fully committed to accelerating the implementation of such an ambitious agreement. The theoretical Consulate in Dakhla, crucial for making Morocco a hub for FDI into Africa, has yet to materialize, with the State Department confirming that the project is still in the planning phase.

Nevertheless, Morocco has become a crucial ally for the United States, especially after the signing of the Abraham Accords. Bilateral cooperation has strengthened across various levels, particularly in the military sphere. Morocco remains the main host of the largest military exercise in Africa, African Lion, while also gaining easier access to sophisticated American weaponry. The purchase contracts for Javelin and HIMARS missile systems serve as evidence of this. Diplomatically, Washington took a major step in recognizing Moroccan sovereignty over the Sahara. The support of the United States in the Security Council is vital.

Read the original article(French) on L’Opinion