Economic relations between Morocco and Germany are entering a new phase in which German small and medium-sized enterprises are gaining increasing importance. Interest in Morocco as a production and export platform for Europe and Africa is growing, driven by geographical proximity and the continued strengthening of Morocco’s industrial ecosystem.

Trade between Morocco and Germany reached approximately €7.4 billion in 2025, confirming the importance of bilateral economic relations. However, the available potential goes far beyond trade figures. German Mittelstand companies possess advanced expertise in automation, industrial machinery, automotive components, electronics, energy efficiency and production technologies. Morocco, for its part, now has an industrial ecosystem capable of integrating these technologies, particularly in automotive, aerospace, electronics, chemicals, agri-food and renewable energy.

The Kingdom’s geographical position gives German companies rapid access to the European market while allowing them to leverage Morocco’s expanding economic and commercial networks across Africa.

Local Suppliers at the Heart of the Next Phase

One of the key challenges of this cooperation will be to increase the level of local integration. The establishment of a German industrial company in Morocco generates a much greater economic impact when it also contributes to the development of local subcontracting, technology transfer, skills development and the emergence of new Moroccan suppliers.

This is precisely the next stage Morocco is seeking to achieve after successfully attracting major international investors. The next phase requires expanding the local supplier base and connecting Moroccan small and medium-sized enterprises to global value chains.

Morocco can also become a regional platform for German companies seeking access to African markets. The combination of German technology, Morocco’s industrial platform and African reach represents one of the most promising areas of bilateral economic cooperation. The challenge now is to transform trade into productive investment, investment into skilled employment, and employment into value added and exports.