(Ecofin Agency) - King Mohammed VI of Morocco and French President Emmanuel Macron oversaw the signing of 22 new agreements Monday in Rabat, marking a deepened economic partnership between the two countries. According to the French presidential office, the accords, which carry an investment potential of €10 billion ($10.8 billion), span multiple sectors, including transportation, renewable energy, and agriculture.

Rail, Maritime, and Aviation Investments

Beyond symbolic reconciliation, President Macron’s visit allows both nations to enhance their economic ties. His delegation included about 40 French business leaders.

Ce jour à Rabat, nous ouvrons un nouveau chapitre de la longue histoire entre le Maroc et la France pour la prochaine génération. pic.twitter.com/1HrtawqZqu

— Emmanuel Macron (@EmmanuelMacron) October 28, 2024

One major agreement saw Morocco’s National Railways Office (ONCF) partner with French company Alstom to purchase 12 to 18 high-speed trains, adding momentum to Morocco’s growing rail infrastructure. Macron last visited Morocco in 2018 to inaugurate the first segment of Morocco’s high-speed rail between Tangier and Kenitra.

Morocco’s rail plans gained further support with a financial cooperation declaration signed by the French and Moroccan economy ministers, targeting ongoing rail sector development. ONCF also entered into a supply contract with Vossloh Cogifer, a global player in rail infrastructure, and secured a project management agreement with Systra and Egis for the high-speed rail extension between Kenitra and Marrakech.

Aviation infrastructure also saw a boost as Morocco signed an agreement with the French aerospace group Safran to establish a maintenance and repair (MRO) facility for LEAP aircraft engines, a project valued at €130 million. Meanwhile, CMA CGM, the world’s third-largest shipping company, committed to a €258 million investment to build a container terminal at Morocco’s Nador West Med port in collaboration with Tanger Med.

Focus on Renewable Energy and Green Transition

France and Morocco reinforced their shared commitment to renewable energy through several agreements. EDF Renouvelables signed a memorandum with Morocco’s National Office of Electricity and Drinking Water (ONEE) to expand the Taza wind farm, adding a capacity of 63 MW.

L’accord signé lundi à Rabat permettra de lancer plusieurs projets ambitieux d’énergie renouvelable, de stockage de l’énergie, d’hydrogène et d’ammoniac verts, d’infrastructures électriques et de dessalement durable. Quatre projets d’envergure sont dans le pipe.

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— La Vie éco (@JournalLavieeco) October 29, 2024

Morocco’s state-owned phosphate giant, OCP Group, joined forces with France’s development agency (AFD) to pursue a €350 million project aimed at decarbonizing OCP’s Moroccan operations. OCP and ENGIE signed an energy transition deal to develop green hydrogen and electricity projects, further enhancing Morocco’s industrial ecosystem.

Green hydrogen, a critical element in Morocco’s energy transition strategy, gained additional support as the government has allocated one million hectares for sector development, with 300,000 hectares initially open to both national and foreign investors. Agreements with TotalEnergies and Total Eren laid the groundwork for green hydrogen development, with Morocco committing exclusive land use for this initiative.

Institutional collaboration in the hydrogen sector also emerged with a partnership between Morocco’s Minister of Energy Transition, Leila Benali, and France’s Deputy Minister of Energy, Olga Givernet, focusing on renewable energy, energy storage, and low-carbon hydrogen production. The establishment of a French-Moroccan Research Center for Africa was also announced, pioneering studies on renewable energy and hydrogen on the continent.

A Strengthened Economic Alliance

These agreements reflect the enduring presence of French investment in Morocco, which totaled approximately €20 billion in 2023, making France Morocco’s top foreign investor. Around 1,300 French subsidiaries operate in Morocco, including Renault’s assembly plant in Tangier and Stellantis’s factory in Kenitra.

Visite de #Macron au #Maroc: @datirachida annonce un accord pour construire un cinéma à #Dakhla dans le #Sahara

Détails ➡️ https://t.co/AGyvg7YDer pic.twitter.com/widIWpOxCT

— Maroc Hebdo (@marochebdo) October 29, 2024

In return, Morocco leads African investments in France, accounting for roughly 60% of those flows in 2022. To further encourage investments across Morocco, both countries established a Morocco-France Investment Accelerator with a budget of MAD 3 billion ($304 million), aiming to increase investments nationwide. A 50/50 joint venture with a capital of €300 million was also announced to support sustainable infrastructure development.

The agreements reached during President Macron’s visit are expected to strengthen the economic ties between Morocco and France, fostering international competitiveness for both countries.