Morocco tops the list of African countries for business climate

For the first time Morocco has topped the list of African countries for business climate, scoring 3.9 out of 5 in the annual Business Climate Barometer compiled by the French Council of Investors in Africa (CIAN). Morocco finished ahead of Mauritius (3.4), Uganda (3.3) and joint fourth-place Algeria and South Africa (3.2 each). The ranking reflects a survey of hundreds of local and foreign executives across the continent and measures 39 standard criteria including infrastructure quality, tax efficiency, legal framework and human resources.

"Morocco is making progress on economic indicators, leading the African scene in terms of business climate thanks to the opportunities it offers investors, underpinned by political stability, strategic location, infrastructure development and ongoing economic reforms," the report states.

The result crowns more than two decades of steady reforms and targeted economic development. Key ministers and agency leaders — Karim Zidane, Minister Delegate to the Head of Government for Investment, Convergence and Public Policy Evaluation; Ryad Mezzour, Minister of Industry and Trade; and Ali Seddiki, Director General of the Moroccan Agency for Investment and Export Development (AMDIE) — have been prominent in representing that agenda at international forums such as the Paris Air Show and the Morocco Now event in Brussels.

CIAN's data show concrete business outcomes: in 2025, 48% of companies surveyed reported making a profit, 32% broke even and only 20% were in deficit. The barometer places Morocco in the highest ratings band (between 4 and 5), and eight out of ten companies had a loss-free year despite the international headwinds of inflation, rising interest rates and regional geopolitical tensions. By 2026, executive sentiment improves further, with 56% anticipating profits, 34% expecting to break even and only 10% forecasting losses.

• Strategic assets: Ports such as Tangier Med, Nador West Med and Dakhla Atlantic and a motorway network that connects cities and industrial centres.
• Sector strengths: Automotive, aeronautics, renewable energy and agri-food are singled out for strong performance; eight of the nine largest companies in North Africa and eleven of the twenty largest African companies are Moroccan.
• Policy measures: A new Investment Charter offering tax incentives, financial support and repatriation facilities for capital and profits, and steps to digitise administrative and tax procedures.
• Infrastructure highlights: Al Boraq, Africa’s first high-speed train, and expanding renewable energy projects including solar plants such as Ouarzazate.

However, the barometer also flags operational obstacles that Morocco must address to maintain and deepen its lead. Respondents point to customs procedures, regulatory barriers and administrative complexity as limiting operational efficiency and flexibility. Water stress is identified as a growing constraint on certain sectors. Rising competition from Kenya, Egypt and South Africa — alongside ongoing reforms in Uganda and Mauritius — adds pressure to retain investor appeal.

CIAN emphasises the need to improve regulatory efficiency, transparency and digital readiness to tackle these issues. The report also highlights future economic opportunities linked to sustainable aviation fuels and green hydrogen: legislative requirements for increasing sustainable fuel use in aviation could position Morocco as a supplier of clean energy to European markets.

Outlook for Morocco is cautiously positive. The country’s combination of political stability, strategic location, expanding logistics capacity and sectoral strengths has translated into measurable profitability for companies operating there. Maintaining the top ranking will depend on continuing reforms to simplify administration, strengthen water resilience and deepen regulatory frameworks for high-tech and defence partnerships — areas the barometer identifies as essential to convert Morocco’s current momentum into sustained competitiveness.